Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-30
TWO TAX REDUCING
PLANS ARE URGED
Adoption of New Method in
New York ArouSes Inter
est Elsewhere.
BY JOHN r. MILLER.

Two methods of reducing taxes are
now being agitated in q number of the
States. The first involves scrapping So
called local tax systems and the second
is commonly known as the State con-
troll plan
Adoption of the first scheme in New
York Is recommended in a report Just
issued by the National Industrial Con-
ference Board. The advisability Of a
sales tax Is now being considered by
New York legislative committee, and
the report of the conference board was
made, undoubtedly, for the express pur-
pose of showing that such a tax is IN
necessary, or at least should not be put
into effect until an effort has been
made to solve the problem by reducing
expenditures.
Town System Opposed.
THE town system of assessment is
encountering vigorous opposition in al
most every State now using this system
and 1t may be expected that in the
future more States will adopt the county
unit plan" the board declares.
In view Of the cumbersome and ex-
pensive local revenue system" the re-
port continues, 'it should be seriously
considered whether the State should
not turn its attention to this phase of
the tax problem rather than to seek
new sources Of revenue which will
serve further to intrench the existing
system"
County and city expenditures in the
United States are more than $4,000
000.000 annually, or 323 times the 1913
inquire. II the amount of such eXpendi-
lures could be reduced as much as 10
per cent. it would enable many corpora
tons now having deficit to earn a
RlfT al
assert, pointing out that in 1921 the
average corporation paid more in taxes
than in dividends.
State control of local expenditures
Is q necessary corollary to, the central
lied assessment plan, most authorities
believe. Gov. Brucker of Michigan
summed up the situation when he said:
One of the chief obstacles in the
way Of accomplishing any worthwhile
and lasting results has been the un-
wleldy and disorganiZed nature of the
whole local government structure. This
lack OF coordination is a major cause
for present tax difficulties. In the State
OF Michigan there are 83 counties. 460
cities and villages. 1859 townships,
6,S78 school districts and an un-
numbered host of special assessment
districts. l am informed that there
are more than a quarter of a million
, AONoA HOAAIACdl SuUQlFlSlOIlS III the
country at large.
Unwarranted Spending.
This host Of ASSOCIATED tax-raising
agencies cannot fail to weaken the
public resistance to unWarranted spend
ing. The multiplicity of responsible
omcialS perplexeS the citizen and paves
the way for Placing the taxing power
in hands that may be incapable or I'M
worthy. Public spirited citizens seek
ing to bring about needed retrench-
mentS ma II necessary 10 diXipate
their energies in a vain effort to keep
watch over too many spending agencies.
until they become discouraged and give
up the effort
Clearly enough, Federal taxes can
not be reduced, at least for several
years. County and city expenditures,
which are 20 per cent greater than
those Of the Federal Government. can
De reduced substantially, tax experts
agree.
fcopyright. 1897