, 1923-09-15
The Alarming Increase

The Alarming Increase
The problem of taxes is becoming a very ser
ions one. In every section of the country there Is
complaint over the increasing burdens OF govern
ment as represented in mounting taxes. 1t Is safe
to say that there are very few states whlch nave
not tremendously increased its expenses and
taxes during the past few years. The same gen
eralization, with a few notable exceptions, may
be made regarding the tax rate OF county govern
ments, townships and municipalities.
The United States is the only Unit OF govern
ment which has reduced the tax rate and tax
collections since the war.
To date there has been no compilation made OF
the tax situation by counties, townships and
municipalities. Eventually this will be made, as
the census bureau is working diligently upon the
subject. So are other research bureaus.
Enough is known to justify the statement that
contrary to the theory of popular government,
the closer the government is to the people the
more extravagant it is in the matter of public
expenditures and the higher taxes are. To
phrase it another way-an data and official tax
statistics show that city governments are the
most extravagant of all, county governments
next and then state governments. Waste and
even graft abound in city and county govern
ments without mucn apparent rebuke by the To-
cal citizens, which If existing in state or federal
governments would become object to sensational
attacks.
During the last ten years the most conserva-
tive estimate shows that states and local gov
ernments have issued more than $1O,Oo0,O0O,OOO
of bonds. The increase of bond issues by states
and municipalities is alarming. The figures In
recent years are accurately ascertainable.
In 1919 states and municipalities issued bonds
in the sum of $692, 100000; in 1920 in the sum of
$6S3, O00, 600. In 1923 this sum was nearly doub-
led. THE bonds issued in that year by state and
local governments aggregated S1,2O9 100000. Dur
ing the calendar year of 1922 the aggregate bond
issues by state and local gov nments was ST.
100000, 900.
These bonds are tax exempt from all federal
taxes, so that their issuance not only increases
the state and local taxes directly upon the peo-
pie of the states and municipalities, but by en-
abling wealth invested in them to escape federal
taxes others must pay more federal taxes.
The very fact such bonds are free from federal
taxes is an encouragement for their issuance in
greater quantity than needed, and is one of the
contributing causes of extravaganza by state
and local governments. The process Is much as
follows: Because such bonds are exempt from
taxation they are easily marketed. Because they
are easily marketed, 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 expense
finds it very easy TO convince state or local au-
thorities that what they want should be granted
and the expense covered by bond issue to be paid
at some future time.
Some idea of the tremendous increase In per
capita costs of state governments and state in
debtedness is now obtainable from the United
States census bureau. 1t Is compiling as rapidly
as possible the financial statistics of state gov
e~nments. Up to date, this data for 10 states has
been issued. The figures for Delaware and Ne
braska were issued September IL. and for Ohio
September 10. The first such survey was for the
state of Wyoming. The following figures show
the increase in per capita cost of the ID states,
thus far reported and also the increase in the
state Indebtedness. The states are listed in tho
order the report on them was made by the census
bureau:
Wyoming-Per capita cost OF the government
of the state of Wyoming was $40 in 1914, 1904
in 1917 and 1927 in 1922. Net per capita indebt-
edness was sixty.seven cents in 1914, fifty-six
cents in 1917 and 1887 in 1922.
Rhode Island-Per capita government cost
was S612 in 1914, 1927 in 1917, $11.S4 in 1922.
Net per capita Indebtedness was S10.66 in 1914.
1904 in 1917 and $151S in 1922.
Michigan-Per capita government cost was
1886 in 1914, 500 in 1917 and $24.07 in 1922. Net
per capita Indebtedness was $214 in 1914, S264
in 1917 and $3.50 in 1922.
Kentucky-Per capita cost was $3.50 In 1918.
$4.55 in 1918, $7.71 in 1922. Net per capita indebt.
edness was $l.03 in 1915, $1.OS in 1918, $1.O1 in
1922.
nlinois-Per capita cost was s316 in 1915.
$4GS in 1918, s7s3 in 1922. The net per capita
indebtedness was thirty-five cents in 1916, thirty.
three cents in 1918 and S191 in 1922.
New Jersey-Per capita cost was 1888 In 1915.
Sos in 1918, $16.91 in 1922. Net per capita in.
dehtedness was four cents in 1915, four cents in
1918 and S49s in 1922.
Minnesota-Per capita cost was S7.54 In IoI5.
$500 In 1918, $17.06 in 1922. Net per CAPITA in.
dehtedness was s11S in 1915, ~sixty.one cents in
1918, S7.a5 in 1922.
Wiseonsin-Per capita cost s6A1 in 1915,