WI: A Horsepower Tax in the USA before WW1

“…With President Roosevelt's signature yesterday, the Highway Act of 1905 became law. The scope of the Act is to ensure the safety of the public byways by making improvements to roads, bridges and signage that accommodate the increasing number of Automobiles in the nation. The improvement called for in the Act are paid for by though the establishment of an excise tax, based on the horsepower of the automobile engine. The tax is incremental in nature. Automobiles under three horsepower are taxed at a rate of $1 per horsepower. The remaining horsepower tax brackets are shown in the adjacent table. The tax is only assessed on vehicles intended for personal passenger use. Commercial machines such as delivery trucks and taxi cabs are to be assessed at a rate half that of private machines. Steam automobiles have their own tax rate, and electric automobiles are exempted from the tax.

Tax Horsepower Assessed Rate
3 and below $1
3 to 9-9/10 $1.35
10 to 16-9/10 $1.70
17 to 23-9/10 $2.05
24 to 30-9/10 $2.40
31 to 37-9/10 $2.75
38 to 44-9/10 $3.10
45 and above $3.50

The Revenue Service will use the following formula to calculate Tax Horsepower: 3.15 x Engine Cylinder Bore diameter in inches x Number of cylinders DIVIDED BY 2.5..."

Excerpt from the Wisconsin State Journal, December 19th, 1905.
 
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marathag

Banned
“…With President Roosevelt's signature yesterday, the Highway Act of 1905 became law..

Not seeing this getting thru the Senate, as it cuts into the States taxing how they saw fit, and there were no highways yet that crossed State lines to give a way for the Federal Government to get in there.

In the House, without a War on, don't see a tax bill like that even getting out of committee. It was one thing for excise 'Sin' tax on Alcohol and Tobacco(around 80% of Federal revenue was from these) quite another on Machinery.

The only possible way for this would be during WWI for this Tax to have a chance of getting thru Congress
 

Delta Force

Banned
This is really more of a state issue, especially in the early 1900s. Also, it might not be legal, or at the very least it would be an unusual tax. Most federal taxes came from tariffs and excise taxes prior to the passage of the 16th Amendment in 1913, which legalized the income tax.
 
The Revenue Service will use the following formula to calculate Tax Horsepower: 3.15 x Engine Bore x Number of cylinders DIVIDED BY 2.5..."

The "formula" uses the term engine bore as if it existed. It does not, although the term cylinder bore exists, which, when combined with stroke, will result in swept volume or capacity of a single cylinder. The term "tax" can be changed to "fee" as in a renewable license fee. Fees can be based on actual or calculated horsepower, capacity, or number of cylinders, as you please. Which level of government will get into fee collection is a constitutional issue. Why would electric cars be exempt? If the justification for the tax was to develop road infrastructure, then no exemption seems fair. Fuel taxes only apply to gas engines.
 
Philadelphia, April 7th 1905

A.J. Cassatt was feeling very fine. His spirits were up, which was only in small part due to the exceptionally fine brandy that the new Bellevue Stratford hotel served after dinner. And the dinner – oh, if only his dear mother had lived long enough to see such a spread! Fresh oysters from the sound, lobster bisque, roast venison and pheasant. Cassatt was not so old that he didn’t remember the modest home he grew up in. His father’s wages were modest, but they were enough that his children never went hungry. Of course, he had done quite a bit of scrabbling himself on his path to his current position.

Their carriage rocked back and forth slightly, the steel tires clattering across the cobblestone. It was a very well-built machine, the finest money could buy as a matter of fact, and through the insulated walls the sound of the horse’s hoofs was only a muted metronome. They would be home in another ten minutes, and A.J. was already looking forward to –
A sudden mechanical howl filled the air as the carriage rounded the corner onto 18th Street. Ahead somewhere the horses bellowed in fear, their steady rhythm lost amid disjointed scraping and clattering as iron-shod hooves fought for purchase on the hard street, and failed. Cassatt turned his head towards the sound, and caught a glimpse of movement and light – and then a then an explosion of wood and glass and steel came from the rear of the carriage as it rocked with an impact and returned to rest, listing and motionless. Everything went dark and quiet for a few seconds.

“Mr. Cassatt! Mr. Cassatt! Are you hurt? Are you alright?” Nader, the carriage driver, was yelling loudly in the window. He opened his eyes, and looked around. He was lying on the floor of the carriage, and as he sat up, he didn’t feel hurt.

“I’m alright, Nader.” The carriage door opened, and Nader stuck his head inside. He helped AJ out of the carriage onto the street. As AJ stood up straight, he felt a sharp twinge in his neck. Well, he may not be completely fine, but he’d survive. A small crowd was beginning to gather around the scene.

It was not exactly grisly, but it was far from pretty. One of the horses was gone – its harness must have snapped in the commotion and it had bolted – and the other horse lay on the grounds withering. A pale white line of bone was visible in the bloody mess that had been a leg, snapped when panicking hooves lost, then regained, grip on the street. The rear wheel of the carriage, and everything behind it, was a tangled mess of iron, leather, wood and glass. In the middle of the mess were the remains of a gleaming yellow motor-car, a gasoline powered one by the stench of it.

The operator of the car was sitting in the street, holding a handkerchief up to a bleeding cheek. His heavy duster was covered in oil and blood and horse manure. AJ looked at the man, a fury building up inside. How could somebody be so stupid? These were public streets! How fast must have he been going to do that much damage – 30, 35 miles per hour at least. What if it hadn’t been our carriage, but a young child? AJ was all for progress and technology, but some responsibility had to be part of it!

He slowly reached into his coat pocket. His hand found the grip of the small Colt pistol he carried when out and about. Shaking slightly, he drew it out and racked the slide slightly to verify that a cartridge was chambered. He looked at the driver of the motor-car, spit on the ground and walked to the injured horse. “I’m sorry friend,” he said, and euthanized the horse with a single pistol shot.
 
Philadelphia, April 8, 1905

AJ was standing on the platform of Broad Street Station. Philadelphia was rarely sunny, but today the light streaming though the acres of skylight was gorgeous. It put AJ in mind of a Gothic cathedral, re-imagined in iron and glass. He looked down at his watch – 4:14, the Express should be here in just another minute. He looks down the track in anticipation. There! He caught sight of the headlight of the approaching locomotive. But something was… wrong. A second light shown next to the first. As it came closer, the soothing chuff was missing – all he heard was a staccato popping like a Maxim gun. As the strange locomotive approached, the light from above diminished as dark cloud blotted the sun. The platforms were plunged into murky gloom, punctuated only by the lights of the approaching train. But it wasn't a locomotive, there was no train! It was a motor-car! The same motor-car that had smashed his carriage earlier that day, driven by the same young man, his face still bleeding and his duster still filthy. It pulled up to the platform with an unearthly racket, tires sqalling on the ties and bedding, the back of the car flopping back and forth like a fish on shore! He was out of control - again - and AJ took a reflexive step back from the edge as a cloud of oily smoke and dust overtook the freakish machine. He tensed, waiting for the inevitable crash. But, there was no crash, no wreck, and as the dust and smoke gave way, he saw the man sitting in his cramped seat, nonchalantly gripping the steering wheel and smiling smugly like the Cheshire cat.
"Howdy, old timer!" the man shouted over the throb of the idling beast. "Need a ride somewhere, pops?" The man reached over the empty passenger and proffered a hand to AJ. “Come on, grandpa, climb on. Your future is here,” he said, slapping his bloody glove on the passenger seat.
AJ recoiled. "No, thank you all the same. I'm taking the train. My train, as a matter of fact!" The driver threw his head back and laughed, a full on belly laugh.
"Train? There ain't no train coming, pops! There ain't no more trains. Who needs 'em?" The man jerked his outstretched thumb towards the back of the car, and AJ followed the gesture. Instantly and silently he saw a line of motor-cars stretched behind the first - like a train – smoking and noisily farting as far as his vision carried. Hundreds of them, driven by young men - and women! - all laughing. Laughing at him. "A train? Har har har, whoever heard of riding a train!"
It was all too much! AJ turned and ran back into the station, into the terminal. The station should have been a sea of humanity, all classes and colors of man co-mingling in the great terminal before or after their journeys. But it was empty. The shining marble floor was gray and cracked. Windows were broken. Paint peeled from walls. Pigeons fluttered above, and small scurrying things flitted through the shadows. What the hell was going on?
He raced out the doors onto 15th street – which was packed with motor-cars! Every size and shape and color, some familiar to his eye, some weirdly shaped like a glassy jewelry boxes or huge mechanical beetles. They jammed the street in every direction, horns honking, exhausts blending together into a dull waterfall roar. He turned to run towards his Ritterhouse home and tripped, falling onto a horse laying in the sidewalk – it was the injured horse from the accident! But it wasn’t – it was Eric, his prizewinning horse from the Belmont Stakes decades ago. The horse looked up with him with mournful eyes, nostrils flaring with pain. Through the din of the motor-cars, the horse said "Save me."

AJ snapped awake in bed, his heart hammering, and sat bolt upright. A sharp, whiplike pain snapped through his neck when he did so, and he groaned an lay back down. Reaching over, he turned on his bedside lamp and looked at the clock on the nightstand. 3:20 in the morning. What a dream - no, nightmare! AJ turned off the lamp and lay in bed, staring at the ceiling. Outside, he could faintly hear the sounds of a city deep at sleep. A train whistle off in the distance – not one of his, but a train just the same. His breathing slowed, and his pulse gradually returned to normal.
AJ was not the sort that put a lot of stock in the supernatural or read much into dreams. It was probably nothing more than a touch of indigestion brought on by the leftover rarebit he raided from the icebox for a late-night snack. But, maybe not? The nightmare was different - it was so vivid, so frightening, so… plausible. AJ was an engineer by trade, and trusted in the strength of stone and iron and earth. The word "premonition" was hardly part of his everyday vocabulary, but in the solitary darkness...
Maybe, he thought, maybe people need to ease into a world with motor-cars. They were here, he knew, and here to stay. That jinni was out of the bottle, and the convenience and speed of a motor-car was undeniable. He owned two of the things himself. They were still uncommon in all but the biggest cites, but more and more were on the streets every day. And while he hadn’t been injured in the wreck – other than his sore neck – many people were hurt and even killed – drivers, passengers and pedestrians alike. Granted, people were killed by trains on a fairly regular basis, but you knew where a train was going to be. A motor-car, it could come from anywhere. No, we can’t get rid of them all, and we shouldn’t try. Just the same, perhaps something could be done to throttle their spread.
Besides, he thought as he began to drift to sleep, I’m a railroad man. Every passenger in a motor-car is one less passenger on a train. The damned things were bad for business.
Aloud, he said to the darkness “I’ll talk to Boies tomorrow. Maybe the good senator and I can come up with something.
 
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This tax horsepower formula says nothing about stroke, so I'll expect a lot of severely undersquare engines with higher torque running at lower RPMs than OTL USA. That's basically what happened in UK and France.
 

marathag

Banned
This tax horsepower formula says nothing about stroke, so I'll expect a lot of severely undersquare engines with higher torque running at lower RPMs than OTL USA. That's basically what happened in UK and France.

The Stanley '20HP' two cylinder steam engine had a 4" bore, and typically ran under 400 rpm, but had 650 ft.lbs of torque

a 2012 Shelby gt500 Cobra has 631ft.lbs, but at 4000 rpm

A Stanley, you could spin the tires off the rims if you tried full throttle from a dead stop. You didn't need a transmission in a Stanley, the gear reduction in the axle was all that was needed. All you needed was a care hand on the throttle

Jay Leno has a record.

In LA, he got ticketed.

No surprise, really.

But it was in his 1906 Stanley, for going 75mph. But he says the fastest he ever had it was 91mph. Scary fast, considering the suspension on that

By the tax formula posted above, this is a '10' HP engine for tax purposes, depending what the fudge factor for steam is.
 
Legal issue resolution

I could see the definition of "Horsepower" changed as needed to create a more "realistic" or rather, politically useful/revenue enhancing formula over time. If anyone tries to raise a constitutional issue, then it could be amended to include only motor vehicles that cross state lines, thus clearly being interstate commerce. Although the interpretations of the Commerce Clause hadn't given Washington the authority it has now, vehicles that cross state lines could clearly be incorporated under Federal management--especially if a well funded campaign portrayed them as dangerous.
 
Philadelphia, April 12, 1905

Senator Boise Penrose was already seated at a small table and sipping a cup of coffee when AJ Cassatt arrived at the Horn and Hardt on Chestnut street. He waved AJ over to his table. “AJ, it’s good to see you again. Have you had lunch?”

“No, but I’m starving. I’ve never been here before – where is the waiter? I’d like to look over the menu.”

“There’s no menu, AJ,” Boies chuckled. “No menu, no waiters. Haven’t you heard about this place?”

“I have, in passing. Horn and Hardart Bakery opened it, what, two years ago? Some sort of German restaurant?”

“It’s a German idea, I guess, but the food is all-American. Look, you just grab a tray and walk down that line of little glass doors. See something you like, drop a nickel in the slot, open the door and put it on your tray. Let’s go grab a bite to eat.” With that, Boies stood up and began making his way towards the line. AJ followed behind, and followed the Senator’s lead.

AJ was pleasantly surprised. The food wasn’t fancy – but it looked good sitting encased in the little compartment behind the spotless glass doors of the Automat. Some of the compartements were heated, he noticed, and some were chilled. The mechanics of this were not visible to the diner outside. Nor was any of kitchen staff. He could tell that somewhere, unseen behind the wall of windows was a small army of cooks that methodically maintained the inventory of the compartments. But beyond catching a glimpse of hand as a ham-steak was replaced as he walked past a window nothing could be seen. AJ ended up with a club sandwich and a cup of chicken soup. He and Boies returned to the table and sat.

“Interesting place, Boies. Not exactly Delmonico’s, is it?” AJ stirred his soup a bit to let it cool.

Senator Penrose looked down at his lunch – a hamburger steak, slathered in gravy, with smashed potatoes and peas – and chuckled. “No, it’s not. Not even the Bellevue-Stratford. But look around the place, AJ. Who do you see here? “

AJ looked around. He saw a table with three women, shop-girls by the look of their attire, chatting over slices of pie. At the next table were four carpenters, surrounded by an enormous pile of empty dishes. A couple cops were having coffee. Businessmen, tradesmen, young kids and old women. Boies followed his gaze around the room, then said “Now, who don’t you see here?”

AJ looked back at him, wincing a bit as he turned his neck. It was better now, but still a bit tender. “Well, it certainly isn’t the social setting I’m used to.” A flicker of comprehension flickered over his face. “Ah, anonymity. What better way to keep a meeting discrete than to have it out in public – and this is as public as we can get, eh?”

Boies nodded. “Your letter implied a desire for some amount of discretion. By the way, I heard about your accident.” AJ wasn’t surprised. Boies took a sip of coffee and continued, “ Damned motor-cars are a menace sometimes.”

“Well, little harm done. The carriage can be replaced. The young hellion driving the motor-car was shook up pretty badly, but no permanent harm. I’d file suit against him, but he is from a fairly prominent family, and all parties agreed to keep things out of the press.”

“Good idea,” Boies said around a mouthful of peas.

AJ took a bite of his sandwich and chewed for a while. It was a good sandwich, he thought. Not great, but the bread was fresh, the chicken sliced thickly. He swallowed, then took a sip of his coffee - which was suprisingly good. “Actually, Boies, I wanted to meet so we could talk about motor-cars.”

An hour and a half later, the sandwiches and soup and hamburger were gone but AJ and Boies remained at their table. They had covered a lot of ground in that time. It was easy enough to convince Boies that the safety of the new machines was suspect. “I receive letters from angry constituents every month, the senator said. “Quite a few accidents happening, both here and out in the rest of the state. A lot of them are far worse than yours. Kids killed. Mothers maimed. “

“So, what can you do?” AJ prompted.

“Me, personally, or me as a representative of the Federal Government?”

“What can Senator Boies Penrose of Pennsylvania do about this?”

“Nothing.”

AJ looked incredulous. “What do you mean, nothing?”

Boies sighed and continued “The Federal government is really powerless in this matter. It’s an issue for the States. The crackers and rubes get their hackles up when the Federal government gets involved in anything. Especially business.”

“Don’t give me that nonsense. The Interstate Commerce Act has been throttling my business for nearly 20 years. That Elkins Act business dictates what workers I can and can’t negotiate with. Ten years ago Congress mandated a whole series of safety regulations for the railroads. Boies, if Congress can dictate the safety of my trains and my tracks, why can’t it dictate the safety of motor-cars and roads?”

Boies turned and looked out the window for a good while. “You bring up good points, AJ. Applying the precidents that the railroads operate under now to motor-cars would be a hard sell, though. The states are not going to happily go along with standardizing roads and signage. That would cost money, which nobody ever wants to spend, and more would buck just on principal."

"Why not fund the states from the Federal Budget?"

"Because the penny-pinchers won't give up one dime right now, especially for something they're going to view as interfering with states rights."

"But if there money to fund the roads and signage, would the states take the money?"

"Would they? For as much lip-service the states give to sovereignty, they scratch like barnyard chickens as soon a dime gets tossed their way. Doesn't matter whether it comes from Washington or not."

"Boies, the Revenue Service collects a lot of money from custom duties and tariffs. And the Federal Government seems willing to slap an excise tax on anything that moves or can be drank whenever they feel the pinch - which hasn't stopped people from buying whiskey or cigars, I should add. The motor-car is a toy of the weathy - I'm not going to blink at paying a bit more because of a modest tax, and not many other people who can afford one will either. Slap an excise tax on the machine itself at it's sale, slap an excise tax on gasoline and watch the money roll in."

Boies stared out the window for a bit longer. A motor-car - a big Winton - chuffed by, two men and two women in driving gear, smiling as they sped down the crowded street. Without looking away, he asked "So what's the real reason, AJ? This safety push is all well and good, and might even play well in the papers. But," he said as he turned back to look at AJ, "we both know that it is altruistic hogwash. What's the real reason?"

AJ looked towards the receding Winton, nodded his head and said "Right there are four people who are headed somewhere - maybe to the Jersey shore, maybe up to Valley Forge - who didn't buy a train ticket. Let the damn things get a toehold there will be a lot more of that -" he pointed out the window, though the Winton was long gone, " - and a lot fewer train tickets end up being sold."

Senator Boies Penrose nodded. "And that is bad for business."

"Exactly."

"And impeding the spread - no, wait, guiding the spread - and acceptance of cars will buy the railroads, what, ten years? It makes no sense - how can building more roads benefit you?"

"A tax on the machines might not affect my set, but for a country doctor or small-town lawyer another hundred dollars might delay the purchase for a year. If the gasoline costs a bit more, people with cars might do a little more calculating before trying to drive to Jersey or up north." AJ paused, sipped the last of his coffee and smiled a conspiratorial grin. "Finally, if our interests," AJ continued, indicating himself and Boies with his index finger, "improve the roads that benefit us first, and delay work on the ones that would cause harm..." He let the thought trail off.

"Our interests?" Boies asked.

"Well, Senator, there is an election coming up in November, with plenty of your associates are on the ballot. I imagine a lot of railroad men - management and workers - would appreciate a gesture towards their long-term well-being. And your associates would no doubt welcome their - and my - generous support in return."

"AJ, now you are talking my language." Boies said, smiling.
 
Very well-written so far, I must say. I look forward to seeing more. A US that is more built around rail, at least in the cities and (rail-linked) commuter cities, sounds interesting.
 
Selling the tax...

This should be an easy sell to the lower economic classes, as they don't have motorcars. And the wealthier classes will see it as such a minor price that it can be buried in some appropriations bill that they support--perhaps a bill that also adds to teh industrialists' bottom line somehow.
 

jahenders

Banned
One problem would be that it would likely be seen as (unfairly) penalizing farmers -- some of the ones who (at least now) have the big trucks and such.

In a lot of ways it would make more sense to tax based on use of, and impact on, the roads. So, perhaps some formula based on miles driven per year multiplied by a factor based on weight category (motorcycle, small car, medium car, big car/truck/SUV, box truck, semi, etc).
 
…A figurative crossroads were reached when the Highway Safety Act passed both houses of Congress and was signed by President Theodore Roosevelt in December of 1905. The number of cars sold in the United States between 1900 and 1904 closely matched the numbers sold in in Europe. But while the Parisians gentleman who purchased a Renault or a Londoner who owned a new Rover could reasonably expect to take their car somewhere, a man in New York or Pittsburg or San Francisco was essentially on an island. While the bigger cities and many small and medium-towns possessed good streets, the roads between ran the gamut from bad, often impassible even to horse, to non-existent. In the previous chapter, Horatio Jackson’s 1903 transcontinental journey was described in detail. The reader of today is probably amazed that the journey required 63 days, when today the same trip can be covered in five following the Van Buren Highway. The reader should be amazed that Jackson completed the journey at all. The traveling conditions that Horatio Jackson faced on his transcontinental adventure were not exceptional at the time, they were sadly ubiquitous.

Part of America’s problems with roads was because the nation was so new. Whereas there an excellent chance that the road followed by the European driver had seen Roman chariots on the same well-worn path centuries ago, America was filled with towns that were younger than the people living in them – when they lived in towns at all. More than half of Americans lived in rural areas – farmers mostly, but also ranchers, miners and loggers. Short distances were covered on foot, longer distances buy horse, buggy, or possibly bicycle. Any journey of serious length happened aboard a train, or perhaps the steamboats that still plied the rivers in the Midwest and South. America had adopted the train quickly, and with vigor. By 1904, the railroads had woven an efficient network that completely connected everything east of the Mississippi and quite a lot of the rest.

A more pervasive problem relating to roads was the uniquely high degree of decentralization in the nation. For most of the 19th century, the power and reach of the Federal Government was severely constrained by a congress and supreme courts intent on preserving the sovereignty of the individual states. It was only in the 1880’s that the Federal government asserted its constitutional authority interstate commerce. States fiercely resisted any intrusion into their affairs, even forty years after the end of the Civil War. So when, in the spring of 1905, the call for national standard for signage and road construction was made by the editors of prominent East-coast newspapers, there was little notice paid in the rest of the country. So little, in fact, that when the act was passed in the first week of the December session reporters nationwide speculated that there were powerful conspirators pulling strings behind the scenes. No proof of these allegations has ever surfaced, but it has been a steady fixture of Automobile Mythology since the 1900’s…

Excerpt from “Holy Toledo! The First 75 Years of Willys,” George Romney and Peter Brock, Random House, 1983.
 
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