WWI TAX ON MOTOR VEHICLES

JFK+50:  Volume 7, No. 2404

SENATE ORDERS $40-$50 MILLION LEVY ON MOTOR VEHICLES

Washington, D.C. (JFK+50) One hundred years ago today, August 17, 1917, the Senate of the United States ordered a $40 to $50 million levy on motor vehicles.  The Senate measure, however, was considerably lower than the $68 million levy on manufacturers proposed by the House of Representatives.

The Senate also "accepted the finance committee action in striking out the house provision for additional taxes on inheritance."

A surtax of $10 for each $500 value on automobiles costing more than $3000 will be required by the Senate action.  This tax will be reduced by 10% for each year's use up to a 50% maximum.

JFK+50 NOTE

The War Revenue Act, signed by President Woodrow Wilson on October 3, 1917, is described as "the greatest War Revenue bill yet enacted."  It was designed to raise 2.5 billion dollars per year for the war effort.

SOURCES

"Rich Man's War?  Every Autoist Must Pay Tax," The Chicago Daily Tribune, August 18, 1917.

"The War Revenue Act of 1917," by Roy G. Blakey, The American Economic Review, 1917.

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