Pay as You Use

The Federal Government has long provided specialized services--from chicken inspectors to channel buoys--for U.S. businessmen. As boss of the nation's biggest business, President Johnson insisted last week that the Government be paid more for such services. The budget he sent to Congress proposes new or increased "user" taxes that, if approved completely, would realize another $600 million for the Government. Some of the proposals, however, date back to Harry Truman's day, and even a tame Congress may considerably whittle down Johnson's requests.

One that seems certain to be approved is an increase in patent fees. The Government receives about $9,000,000 yearly from patent processing, but fees have not been revised since 1932 and now cover only a quarter of Patent Office expenses. Under the President's recommendation, higher rates would add another $15 million. Also requested are higher inspection fees for tobacco, grain, cotton and naval stores (which would produce $7,600,000), for special customs services ($1,000,000), and for maritime port services ($2,000,000).

The sharpest battles will come over heavier taxes levied on major industries hat benefit from specialized federal services. The budget seeks increased fuel and equipment taxes on trucks and buses to bring in another $247 million annually and help defray the additional $5.8 billion that will be needed to finish the 41,000-mile federal highways system. It also asks $240 million more in taxes on aviation fuels and the flourishing air-freight business, and a continuation of the 5% surcharge on airline passenger tickets. Truckers, airlines and inland-waterway operators, the last of which would have to pay a new fuel tax amounting to $7,000,000 a year, will probably oppose most of the measures, as they have before. If Congress approves the new charges, however, the operators may pass along many of them to their customers.

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