Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1927-12-06

Tax slashing talk at the national capital has as
sured a substantial reduction in federal taxes. But
the need for national tax reduction should not be con-
fused with local problems confronting states, counties
and cities. Present indications are that the federal
tax reduction will be offset by the general increase
In such local taxes throughout the United States, these
increases being necessary to meet the public demands
for various improvements.
In relation to the state, county and city taxes,
which may be described as local taxes, the fact should
be taken into consideration that the major part Of this
tax is represented by public improvements, demanded
By the public, and which are necessary TO meet the re-
quirements Of modern living conditions. The people Of
today are not only demanding up-to-the- minute con-
venienees, such rs electric washing machines, vacuum
cleaners and gas ranges in their homes, but they are
demanding the most modern improvements in their
state, county and city the best schools obtainable;
and a degree Of excellence in public service that was
unthought Of a decade ago.
However, there is nothing alarming in the increase
in taxes for public improvements. When an individual
or organization declares with horror that a munich
pality or state is spending for improvements nearly
twice as much as in 1913, the fact should be consider
ed that the purchasing power Of the dollar has been
nearly cut in two in that period and that modern liv-
ing conditions demand the expenditure. Whene munich
pal expenditures have grown. investigation reveals
that the increase has generally been fully justified and
was necessary to meet twentieth century conditions.
The cities OF the United States now have a popula-
tion exceeding 40,000.OO0, and nearly one-third the ma
tional population resides in cities Of 10000 or more.
This increase has in itself created the need for many
more functions Of city government and radical chang
es in municipal service.
One feature which tends to indicate that the peak
Of local taxation has been passed is the fact that new
issues Of municipal bonds have been steadily increasing
since 1924. Cities have caught up with the improve
ments delayed during the war period and are back on a
program Of conservative expansion. Another evidence
that civic debts are not extravagant Is the high rat
Ing and ready sale Of municipal bonds. Municipal Sc
rurities are in continual and increasing demand, and
while high grade public utilities must finance their
improvements with bonds paying five and six per
cent, cities are able to borrow money at four to five
per cent.
National surveys indicate that the principal ex-|
Yenditures for public improvements for which local
taxes will be levied during the next decade will be for
street and highway paving. Countless millions have
been expended for these purposes in recent years, and
the expenditures are expected TO show a steady increase
for several years. Economists point out that the motor
car and modern living conditions have completely
transformed the traffic situation. and that paving ex-
penditures are very essential as a factor in economical
transportation and to maintain living standards. No
city, they point out, can afford traffic congestion
which Is certain TO exist where improper facilities are
provided, and that the cost of providing paving and
other facilities is small in comparison with the loss
which would accrue annually through delayed traffic.