Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-21

ceiving only about one-third of the
Nations tax money, while the States
and local political subdivisions have
been receiving two-thirds.
Presidents Harding. Coolidge and
Hoover have all three inveighed against
the extravaganza Of the States, counties
and cities in the matter of taxes Much
Of the tax money is levied to pay inter-
est on bonds. Because the evidences
of indebtedness of these local jurisdic-
tons are exempt from the Federal in
come tax, there has been a strong
temptation to borrow during the pros
porous times since the war. Jurisdic-
tions have made improvements which
in some cases were not necessary and
in more cases were made on a grander
scale than would have been eSSayed had
not their bonds been so readily market
able. The borrowed money flowed in
easily, but 1t was a different story when
the interest and sinking fund payments
began to fail due. These demands for
cash necessitated the raising OF tax
rates all along the line. There has
been q steady rise in these rates since
the commencement Of the era OF tax
exempt bond borrowing.
New York Gets Half Inheritance Tax.
In the last year or two the movement
has checked considerably, but local tax
exactions remain out of all proportion
to the demands of the Federal Govern
ment.
Many States initiated the wartime
action of the Federal Government and
levied income taxes. The same Is true
of inheritance taxes. OF the $lO60o0,-
600 in inheritance taxes collected in
recent year by the States, New York
State received nearly half. Many per-
sons who make their fortunes IN other
sections Of the country move TO New
York upon retirement and die there,
which accounts for so much inheritance
tax money falling to one State. SUCH
taxes account for 7.8 per cent Of the
entire tax collections of that State.
In general, property taxes pay the
chief burden of local taxation. On an
average, property taxes account for 93.9
per cent of the total of local taxes. In
two or three States the proportion runs
as high as SO per cent OF all collections.
These impostS are mainly on real estate,
although most jurisdictions also have
personal property taxes. A personal
property tax, however, is difficult to
assess and dif1cult to collect.
The debt on which these local turiS-
dictions must pay interest has mounted
up to $7,088, 100000. This means a
tremendous annual burden to be met
out of tax receipts.
Inc CLUES owe S4sIU0,VOV,UuU, COunIICc,
| 81 ,2IO, 100000 school districts, $780,
600, 900, and States, 1886, 100000. The
money represented by this debt has
been used as follows: City improve
ments, $2,260, 000, 900; roads, streets and
bridges, 1884 900. 900; schools and
buildings, 1857, 900 900; publicly owned
utilities $685. ,000, 600: general admins
tration buildings and fire departments,
| 1911, 900 900; parks and museums.
| $l85, 200, 900: irrigs ton and food con-
troll, $4,000 900: soldiers bonuses,
! S113,000,000; miscellaneous, 100000
900. and funding $75,000,000
In one respect, businesslike system
has been adopted which 1ightens the
direct tax burden. Roads, q heavy item
of expense both as to construction and
maintenance, are being increasingly
| financed by those who use them. Motor
license taxes and gasoline taxes in
many States are being applied directly
and exclusively to roads. Some $780,
O00, 900 year now Is being collected in
motor license and gasoline taxes. This
is an increase of more than 40 per cent
in the last four years 1t is the modern,
scientific method of operating toll gates.
The toll no longer is paid at toll house.
but the automobile driver actually is
paying toll when he takes out license
and every time he buys gasoline.