Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1921-03-16

oIIy III Q1T0CC C6XaLtOQ, WINE Ln0k
levied upon industrial processes or
franchises or duties levied upon Ger
tain classes Of property with the ex-
pectation that the burden Of this tax
alton will be distributed in such q
manner that those who actually pay
the tax will not feel its burden, is
indirect taxation. The practical ad-
vantages of indirect taxation are the
ease with which 1t Is collected, and
the fact that its collection creates a
minimum of opposition on the part Of
the taxpayer, who often does not
realize that he pays the tax in the
price of the articles purchased. Indi-
rect taxes are likely to encourage
wasteful administration, since the
governing authorities who levy them
do not come in direct contact with
the people who pay them, and as
consequence are not held to such
strict account for their expenditure.
Bonded Indebtedness
In the past few years there has
been marked increase in the bonded
Indebtedness of the State. On De-
ember 81, 1917, the State bonded in
debtedness was $2,629, 10000; in 1920
this was $780, 10000, an increase of
$6,273, 100000 or 1850 Highway bonds
issued since 1913 amount to $5,21S,-
10000 of which $5S5,000 have been
paid. The total amount of interest
which the State must pay on these
bonds between the dates of issue and
maturity is s4,162,460. In other words
the State will pay $179, principal and
interest, for every dollar it received
from the sale Of Highway bonds. A
similar situation exists with the ST.
100000 issue of War Loan Bonds, on
@aich the State must pay s161 for
every dollar received, while on the
Soldiers Bonus bonds the State must
pay $1.30 for every dollar received.
From these figures you will realize
that the State should proceed slowly
in the issuing of bonds, for which flu
ture Legislatures must provide in
terest and principal payments. Some
times when large expenditure of
money is under discussion in these
legislative halls it Is suggested, as an
easy way out Of the problem, that
bonus be issued. The state sould be
as careful about issuing bonds as
about levying taxes. Bonds place the
burden upon the shoulders Of those
who succeed US, and we should be
careful about increasing their bur-
xxy111
less acute than ours.
Legislatures of the past often have
assumed that small annual increase
in the state tax rate would be unnoticed
by the taxpayer, who has been led
along by easy stages not realizing
more than he should be called upon
to bear. This constant increase in
taxes has produced an ever increas
ing revenue, and in consequence the
States activities have steadily wild
ened. l am conviced that this Legis-
lature should inaugurate the policy of
tax reduction, and that appropriations
be SO reduced that the ~ mill rate
Of 1920 can be made AZ mills for the
Is months from January 1921 to July
1922, and 51s mills from July 1922 to
July 1924 total of 10 mills for the
21s year fiscal period; or an average
of mills per year as against the
yearly average of 3/S mills for 1919
and 1920. In this 10 mills are in
cluded 2 mills for the States War
Bonus bond obligations. The State
can accomplish this by reducing it's
expenses just as an individual or
corporation would do under the same
circumstances. From such figures as
are available I believe the State can
safely count upon an income of $19,-
621 ,41S.51 for the fiscal period of 80
months from January 1921 to June
80, 1923, and on this basis our ex-
penditures must be based.
This reduction in taxes imposed by
the State should Immediately be re-
iiected in lessening of the burdens
of municipal taxation. II the State
government retrenches in it's expendi-
lures, city and town governments
may be expected to follow it's exam
pie, for State taxes, with the War
Bonus included, will be 1915 mills
per year less than in 1919 and 1920
and municipalities will no longer
have high State tax as an excuse
for their own extravagances. If the
War Bonus tax is deducted, your av
erage tax rate will be 1870 of the
1919-1920 rate.
am submitting to yau list of pro-
posed appropriations but in doing 80
do not wish my position to be mis-
understood. This list is suggestion
and demonstrates what can be done
If you really mean to practice rea
sonable economy. am convinced, if
you adopt it that the affairs Of the
State can be properly taken care of,
that all departments can be operated
on an efficient and satisfactory ba
sis, and that State institutions will
not suffer by reason Of reduction in