Evening star., 1923-09-13
INCREASED TAXES
Disturbing C. 0. P.
Mounting Rates in State and
Local Assessments Rouse
Fear of Reaction.

The republican national committee
has Issued statement sounding a
note of warning against the alarming
increase of state an@ local taxes, con-
trasted with a reduction of govern
ment taxes and expenditures The
inference drawn from the showing is
that the party in power apprehends
that the voters, groaning under a
,growing burden of taxes, NAV not dis
tinguish between the state and local
and the United States government in
the total, and charge 1t up to the ma
tional rather than the local govern
ments.
THE United States is the only unit
of government which has reduced the
tax rate and tax collection since the
war" declares the statement. 1t then
goes on to say that the Treasury De-
partment report shows there has been
a reduction in federal taxes of $1,5SS.-
100000 since the, republican party
came into power in March, 1921. This
reduction. ir is claimed, was made
possible by the enactment OF the tax
law during the special session or
Congress called by the President dur
ing the summer of 1921.
Complaints Pour In.
a very serious one" says the state
ment. "In every section OF the coun-
try there Is complaint over the In
creasing burdens of government as
represented in mounting taxes. 1T Is
safe to say that there are very few
states which have not tremendously
increased their expenses and taxes
during the last few years. The same
generalization, with very few nota-
BILE exceptions. may be made regard
ting the tax rate of county govern
n2ents, townships and municipalities.
The statement says that city gov
ernments are the most extravagant OF
all, county governments next ana
then state governments. waste and
even graft abound in city and county
governments without much apparent
rebuke by the local citizens 1t Is
charged, (which IL existing in state
or federal governments would become
objects of sensational attacks.
During the last ten years, the most
conservative estimates show that state
and local governments have issued
more than ten billions of bonds. These
bonds are tax exempt from all federal
taxes. so that their issuance not only
increases the state and local taxes di-
rest upon the people of the states and
municipalities, but by enabling wealth
invested in them to escape federal
taxes, others must pay more federal
taxes.
B0na Issues Frequent.
The very fact that such bonds are
free from federal taxes is an encour-
agement for their issuance in greater
quantity than needed, and is one of the
contributing causes of extravaganza
by state and local governments. Be-
cause such bonds are exempt from
taxation they are easily marketed, and
state and local authorities are more
disposed to issue them upon the slight
est provocation.
Knowing this every interest which
wishes something done at public eN-
pense finds il very easy to convince
state or local authorities that what
they want should be granted, mad the
expense covered by bond issue to be
paid at some future time"
The statement also quotes statistics
upon per capita cost of state govern
mentS in a number of states. One of
the largest increases was in Minnesota,
which was $7,54 in 1915 and $17.06 In
1922. Nebraska was S3.7S in 1914 and
1855 ir 1922. These are fair types of
the average increase.