Evening star., 1926-05-13
STATE ANDLOCAL
TAXES ARE SCORED
Representative Mills Tells
c. of c. Levies Have Wiped
Out Federal Savings.

All of the money the Federal Gov.
ernment has saved the taxpayer
through governmental economies has
been more than wiped out by drastic
increases in State and local taxes
throughout the country, Representa-
tive Mills of New York told the dele
gates to the annual meeting of the
United States Chamber of Commerce
at their closing session today. The
time has arrived when the business
man must take an active part in scru-
tinizing public expenditures, the
speaker declared.
Ever since the war, MIR. Mills con-
tfnued, the attention of the taxpayers
has been fixed on Washington, and
the result has been satisfactory. Ex-
penditures have been reduced to bed
rock" he said. and taxes cut to a
point where, either from the stand
point of rates or of total volume. they
no longer constitute an excessive bur
den for a nation as rich as the United
States.
But while our eyes have been turn
ed to Washington" Mr.. Mills declared,
and we have been voicing our salts
faction over the accomplishments
there we have failed to note what was
happening at home.
Gratified with the steady reduction
in the cost of the Federal Govern
ment. we have been neglectful of the
fact that the costs of state and local
government were rising so steadily
as to wipe out all of our gains. Far
from being lower, our total taxes were
actually higher In 1924 than in 1923,
and only 1927 ,00O. 900 lower than the
peak year, 1913.
New York Taxes High.
"In many cases those least able to
pay are contributing most as a re-
suit of this situation. In New York
Citv 1t has been estimated that any
where from two to three months rent
isn't rent at all, but taxes. In the
rural districts taxes constitute one OF
the principal contributing factors 80
the high cost of production and the
consequently low profits.
The Congress just at present is
very much concerned with agricultu-
raj legislation looking to improved
methods of marketing and better
prices for the farmer. I do not want
to minimize what can be accomplished
along these lines, but I do want to
suggest that the farmer can help
himself best at once by demanding of
his State and local officials economies
and reduced taxes at home"
Mr.. Mills read statistics showing
that taxes took more than II per cent
of the nations gross income in 1924,
10 per cent in 1922, and only a little
more than II per cent In the peak
year Of 1919. In 1918 the ratio was
only about z per cent. 80 that" the
m
as the national income Is concerned.
in spite of Federal economies. total
taxes today constitute a greater drain
on our national resources than In
1919" In this connection, Mr.. Mills
pointed out that the Federal Govern
ment has gone as far as it can for the
present and that any reduction IN
taxes in the immediate future must
come from the State and local gov
ernments.
Borrowing Power Used.
Mr.. Mills seriously questioned
whether or not the people could get
considerably more out OF the states
and cities for less money than tney
are getting today IL better administr ra-
tive methods were employed. he de-
clared that the States and munlcipaI
ties nave maze SuCA 1TeO uoO VI IlHOAi
borrowing power that the billion or
more dollars worth of bonds which
were sold throughout the country in
1929 did little more than just take
care of payments that were due on
debts already incurred. =.
When this point has been reacned,
he declared, 1t is obvious that no
real benefit is being derived from the
borrowing method, even in the way
of relief from tax burdens. At per
cent the cost Of borrowed money IN.
creases 10 per cent on the principal
for every five.year period Of the life
of the debt AS result, over So
year. period the total cost will be over
102 per cent of the principal. or more
than double what the improvement
would have cost were 1t financed from
current revenue.
Urges State Budget Bureaus.
There is ore question which 7
want to leave with you. 1t Is whether
our States and localities are not max.
ing too free use of their credit and
whether it wouldn't be wiser II more
strict regard were had for the pay.
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