Evening star., 1925-09-20
DENY RICH STATES
PAY COST OF ROADS
Highway Officials Dispute
Charge of Undue Taxation,
for U. S. Appropriations.
BY the Associated Press.

BY the Associated Press.
Answering those who claim that
he States of greatest wealth are be-
ing unduly taxed to pay the cost of
Federal appropriations for highways" "
the American Association of State
Highway Officials has issued state
ment entitled "Who Pays Uncle sam $
Bills in which it put forward these
points:
Taxes are paid by corporations and
individuals, not by States. which act
merely as collection agencies.
The claim that New York and a few
other States carry most of the burden
OF Federal taxation is erroneous. The
Union Pacific does not come within
1000 miles of New York State, but its
taxes are paid there. The same state
ment is true of many of the large cor
porations of the country
Payments Analysed.
The actual payments made BY States
are according to wealth and popula-
ton. Hundreds of corpora tionS paw
taxes in New York and have their
property elsewhere.
The Federal taxes paid by New
York are much greater than those
paid by Pennsylvania, yet the produc-
ton of the manufacturing plants in
the two States is about the same. The
difference is due To taxes collected III
New York from property held in other
States in the country.
large share of the Michigan in
come tax comes from the manufac-
ture of automobiles, yet the tax is
paid by the people of the AZ States
who buy those machines.
The same thing is true in North
Carolina, where tobacco furnishes d
large medium for Federal tax collec-
tionS.
There are more than 81 800 corpora
tions paying taxes to the Federal Gov
ernment through New York State.
Thirtyeight per cent of the total
bank deposits held in New York City
and trust companies outside of New
York State.
The poorest State helps 10 enrich
the richest State by the depletion of
its natural resources and should have
compensation for further development.
Challenge the Protesters.
Those who have been protesting that
their State lis being assessed by the
Federal Government to give funds TO
some far distant State seem to forget"
the association held, that it is the
natural resources of that far distant
State which enable her citizens to sit
In. their SNUG complacency.
Mines of Nevada, Utah. Montana
and Colorado are emptied of their
wealth, never to be reimbursed, and
the profits so to residents of other
States
"Insurance-fire, life and casualty
IS a much needed part of our business
iife-yet New York, Hartford and
Baltimore are foolish to lay claim to
the prosperity of these institutions.
Boston is the center of our wool
market and yet the Boston Common
cannot take the place of New Mexico.
Arizona and Utah as sheep pasture"
knowing that all manufacturing
In Montana last year paid out over
S21 100000 in wages and salaries
alone. it is astounding to note that
manufacturing of metals and metal
products for the entire State paid an
income tax of but SIT.
There is not a single large city in
the entire country which secures it's
prosperity exclusively from the cit
izens who live in the same State in
which that city is located. The poor
est State helps to enrich the richest
State"