Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-10-14
EQUALIZATION IN TAX
RATE CITED AS MEANS
TO MEET NEWER NEEDS
Prof. e. M. Patterson, U. Of p.
Lecturer, Declares Public De-
mands for More Comforts
Cause of Increased
Burden !
DIRECT TAXATION GROWS

Governmental. state and municipal reve-
nue-raising methods and the forms and
sources OF taxation were analysed and
explained today In lecture delivered at
the University OF Pennsylvania by e. NJ.
Patterson, assistant professor OF economics.
Wharton School OF Finance and Commerce.
The lecture. entitled. why Taxes Are Ris-
Ing" opened the free public Saturday after
noon series.
The lecturer introduced local illustrations
and many Of his remarks bore pointedly
upon the pending plans OF City Councils
and the revision OF Phiiadeiphia's tax rate.
Professor Patterson spoke as follows:
THE cost OF government in the United
| States is higher than most OF us realize. II
| we should divide the cost of maintaining
| the Federal Government and the State
| government and the Philadelphia city gov
| ernment by the number OF individuals
| within the Jurisdiction of each we would
| hnd that the Federal burden In 1918 was
SeS1 pr capita. the Pennsylvania State
burden ss71 and the city OF Philadelphia
S2654. total Of over $40 per capita, or
| 5000 per family.
In other communities the burden is still
| heavier, amounting in New York city TO
over $63 per capita, or 1915 per family.
| These costs are Constantly increasing, and
| as result our taxes continue to rise.
| Whether the taxes are TO be considered
high however, is TO be determined not by
| an examination OF the absolute amount.
but by comparing the amount of taxes paid
| with the income Of the taxpayer and also by
ascertaning what is received by him in
| return for his taxes A tax that is high
In absolute amount may thus be low when
compared with his income. and with the
services rendered by the Government in
return for the tax.
CAUSES OF INCREASES
Tax increases in recent years have been
In part real and in part apparent. The
| real inCrAa IN haA IN r,,r ro.,.
causes, among the most important OF which
are the following:
First. The general rise in prices which
has added to all governmental expenses.
Second. Dishonest use OF public funds.
as Illustrated by the letting OF contracts to
favored bidders. i''pork-barrel' appropria-
tions, etc. These are probably worse in
smaller governmental units than in the
large ones, but are being gradually les
sened everywhere.
Third. Poor accounting methods which
make for extravaganza and dishonesty.
Fourth. Lack OF proper budget systems.
A budget may be defined as a comprehen-
sive plan for financing any undertaking
submitted by the competent authority for
the consideration of the ultimate money
voting power More and more all our gov
ernments are adopting systematic budget
plans, but the situation Is still very bad.
Fifth Growing public debts. with the
|
charges. These are now becoming ex-
tremely serious In Europe and. although
not so acute are bad at home. This is es-
pecially true OF municipal debts. The Phil.
adelpha Bureau OF Municipal Research
recently estimated that II our city revenues
continued 10 increase as they have been
| doing for several years and II our municipal
debt should continue to grow as II has been
growing for several years, by 1898 all of our
revenues would be needed TO meet charges
on the debt. Philadelphia is endeavorins
20 correct her dificulties. Other cities are
having similar and much worse problems
sixth. Expenditures for military pur-
poses. A recent analysis by n oompeten,
accountant showed that IN 1915. s40s.ooo. :,
| 900. or over forty-one per cent. of oul
, Federal expenditures were for war as dis
, tinct from peace functions. Other author
tiles have in the past placed the percentag,
even higher. The United States spendl
!. considerably less for such purposes thar
| many other countries
WASTE IN GOVERNMENT
!. Seven The lack OF proper governmenta
v | organisation. Duplication OF positions an,
salaries. the scattering OF offices, conflict o
n authority between different departments
\ lack Of correlation and the absence OF powe
/ and responsibility are general Some com
|. | munities are improving this my oomplet
reorganization Of their governmental struc
. ture
:. Eight The growth OF government own
. ership. Whether this movement be wise o
d unwise, II Is at present growing. Increase
n ownership and management OF public util
o | ties adds 20 governmental costs. but II proI
!, erly conducted yields a corresponding r,
Il turn. II instead OF government ownershi
and management we turn TO governments
Z control through commissions or otherwie
d we have an Immediate direct cost for IN
70 support OF the work OF the commissions, bt
| adVantanaa ma ha raoalVad lnAraNfl
Al through better service and lower pricea
q "Nine. Growing density OF population
+ This calls for more attention TO sanitation
better police and firs protection. bstts
70 streets and roads, etc.
., Tenth. Most important Of all Ia, n
N growing demand for more comforts and eor
4, yenienoes. our desires and needs are ooI
., stantly Increasing. and we are demandir
A. more and more that they be met throuE
ir governmental agencies. This results In q
10 Increase OF governmental work. that is bot
intensive and extensive. More thorouE
performance Of old funclions 10 insists
upon and new fields OF activity are opsns
up This y 30 Esneral that i is eometlm'
a called the law Of the increase OF State a
a tivities II 10 by far the most importal
cause OF tan increases and furnishes
st strong reason for believing that the Il
creases viii continue.
IMAGINARY BURDENS
. "soms Of our tax Increases are msstil
!" apparent Taxes 70 which We are accn
., toned rouse our resentment less than ne
- onsz Taxes that are paid directly irrita
u much more than those paid indirsctl
r Taxes paid by others trouble us less thu
"a those paid BY ourselves. The mossms
III from indirect 70 direct forms Of taxati'
| II a strong one Reduction of indirect tax
. like the tarin and the substitution in who
ut or In part OF direct taxes like the moon
he tax are bound 70 trritate ps. ana ey
q shoush ths total amount of taxes oollsot
q should remair ths same. those who feel q
- burden in nsv and direct way ere =