Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-21
Taxation in the United States
BY FREDERIC J. HASKIN.

Taxes in the United States have
climbed to a point at which nearly IL
cents out OF every 81 of the peoples in
come goes TO pay the cost of government
and public works. The precise figure
Is ll.9 cents.
This includes all manner of taxes,
direct and indirect, paid by the Amer
lean people. It includes Federal taxes,
such as the income tax, tobacco taxes
and customs duties on imported goods.
These imposts levied by the General
Government, are the lesser proportion
of the whole. The lions share goes to
the States, counties and municipalities.
The total American tax bill is ap-
proximately $9.289, 900, 900. OF this sum
about $3,365, 100000 is paid to the
United States Government. the lesser
political jurisdictions collecting the re-
mainder. These figures vary from. year
to year, rates of taxation changing both
for the Federal Government and in
States, counties and cities. Then. too,
the volume of business done has direct
Gearing on tax collections.
Even with this huge annual tax bill.
however, the American people are better
OF than the great industrial nations of
Europe. Germany, for instance, pays IA
cents out of every 81 of national income
in taxation, while the British rate
ranges from 18 to 20 cents. The French
rate is lower.
During the last 40 years the national
tax bill has been steadily rising There
have been fluctuations in the proper
tons of the total paid to the Federal
Government and to the local juriSdic-
tons, but in general, the trend is toward
lesser Federal expenditures and larger
local ones. The great cities are the
biggest spenders.
For example, in 1890 taxes took ~
cents out of every 81 OF national in
come. OF the total tax bill. Federal
taxes. IL per cent, and local taxes
county and city-46.3 per cent.
Coming on to 1918, the year imme-
diately before the outbreak of the
European war, the proportion of taxes
paid was down to ga per cent of the
national income. The Federal Gov
ernment's share had dwindled to 306
per cent, but the States share had
risen to 1877 per cent, while the coun-
ties and cities were receiving 55.7 per
cent Of all taxes paid. This year rep
resents the high point in local taxa
ton.
Taxes and Incomes Increased.
The coming of the World War, and
especially the entry OF the united
States into it, brought greatly increased
Federal taxation. The income tax, the
excess profits tax and such special
taxes as those on admissions and on
luxuries took hundreds of millions from
the pockets of the people. To be sure,
it was a period in which the national
income also gained tremendously, so
that, while the sums raised we're i'm
mensely increased, the proportions and
percentages were not so sensationally
altered.
For the period of the war emergency
and for some years thereafter the bal
ance was shifted and more money was
collected by the Federal than by the
State and local governments OF the
total tax bill in those years about so
per cent was collected by the Federal
Government and about 40 by the other
governments.
The economy program put into effect
Immediately after the war, making pos.
sible the pairing down. year by year, Of
the Federal income tax rates. the re-
peal of the excess profits tax and Of
other levieS. steadily reduced the
takings of the Federal Government
until by 1928 the United States was
collecting only 344 per cent of the
national tax bill, while States were coll
lecting 1873 per cent and counties and
cities 498 per cent. Thus the Federal
Government has in recent years been re-