Show Treasury Backs I Oleo Tax Repeal 1 V WASHINGTON May 17 UP- UP R The treasury Monday backed re repeal repeal repeal re- re peal of all federal taxes on oleo oleo- margarine Undersecretary A. A L. L M. M Wiggins Wiggins Wiggins Wig Wig- gins told the senate finance nce committee committee committee com com- the treasury would like to drop them and use the effort for collecting other taxes The oleo taxes bring in a year The committee called for the treasury's views at the opening of hearings on the oleo tax ta repeal bill already passed by the house Wiggins said that if congress in insists insists insists in- in on using taxation to regulate regulate regu- regu late ate production p and distribution of margarine it should at least cut the he present punitive tax rates to o token tax requirements He argued that there is an Indirect Indirect indirect In in direct tax burden of about a pound on consumers although the he federal tax itself Is only lOc lOca a pound on colored margarine and one-fourth one of a cent on the uncolored uncolored uncolored un- un colored product This argument went Consumers prefer yellow table spreads and have an aversion to the he uncolored product The taxes keep oleo distributors from giving the public Y what at it ft prefers The indirect tax burden follows when consumers rs with equal preference preferences for the two product products products prod prod- are unable to purchase oleomargarine and are obliged to pay for butter |