Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-28
BY AsHMUN BROWN.

BY ASHMUN Known.
cit was the war;" -..
That is quite as good an excuse as
any for the increasing tendency OF the
American people to rely on government
to perform services they once per-
formed for themselves. In war time
government takes on an infinite num-
Der of duties that in time Of peace
are left to the citizens, and this IN
stills the paternalistic idea into the
public mind. Since the war the Gov
eminent has grown tremendously In
all its branches, national State AND
local. ...
at first the major growth was IN
local and State governments. Their
costs mounted prodigiously, education
and good roads accounting for much
of the addition, while interest on
bonds issued to pay for roads and other
improvements also climbed at time
the Federal Government was making
sharp decreases in its expenditures:
Now a new phase of the develop
rnent makes itself apparent. State
and local authorities have almost eX-
hausted their resources OF revenue
raising Their taxpayers groan and
protest under the burden. Thus the
State authorities and the people turn
anew to Washington for financial help.
They have witnessed their local and
State tax rates ever rising. while the
Federal Government steadily has been
reducing its own-up to this year,
when the equivalent Of an advance was
noted, incident to the Federal Govern
ment'S inability to carry along the
sharp reduction in income tax rates
that taxpayers enjoyed last year.
Moreover, the high Federal taxes OF
the war and the immediate postwar
period had the appearance at least. II
not the actuality. Of being less burden
some than the taxes imposed by au-
thorities nearer home. The belief has
grown that Uncle Sam can wrest a
dollar out of the taxpayers with less
pain to them than local and State au-
thofities can vrest one.
2,465,3S5 Pay Income Tax.
Likewise, the belief prevails that a
dollar in Uncle Sans Golfers has an
origin no further back than the pockets
of the rich. Last year only 4,034, 702
prosperous citizens had enough income
to require them to make out individual
Federal income tax returns, while Of
these only 2,465,3 o5 were required to
rates were higher, that more than
100000 had to make returns and
more than 1000, 900 had to pay taxes.
Last year 475,51 corporations made
returns, but only as, T6e paid corpora
ton income taxes:
Undoubtedly, the popular belief is
that the Federal taxation system Is the
least burdensome Of all and that high
taxes on the rich are not passed on down
the line to the consumer teaching
that Is contrary to the findings of the
students Of taxation systems. It has
been demonstrated many times that the
tax on q corporation Is, and must be
added to the operating costs Of that
corporation, and thus be reflected in the
price at which that corporation sells
the commodity 1t markets, -
that the landlord passes on his taxes
TO his tenants, the merchant to his Gus.
toners, so through all occupations anc
stages Of society.
Huge taxes always keep the peopl,
poor" renaarke4 former President Cool.
idge. sEmphaztke the Cleavage between
the classes and retard the distribution
Of wealth."
Principle Recognized by Hoover.
President Hoover, in his veto of the
soldiers loan bill, recognized this wher
he said:
1.-THE need Of our people today is q
decrease in the burden of taxes and un-
employment, yet they -" are be.
ing steadily forced toward higher tai
levels and lessened employment by such
acts as this. We must not forget the
millions Of Woodworking families in oul
country who are striving TO pay the
debts which they have incurred in &C
Quiring homes and farms in an en-
deavor to build protection for their fu-
ture. They. in the last analysis, must
bear the burden Of increasing govern
1nent aids and taxes. It Is not the rich
who suffer. When we take employment
and taxes from our people, it. is the
poor who suffer-
Prof. John Dewey. president Of the
eo-called Peoples Lobby, gives a meas
tire Of recognition to the fact.
Under our present tax system
Federal, State and local." he declares
''the major part of all government rev.
enue Is paid by the masses"
In the next breath he insists thai
the taxing power be used to effect re-
/. distribution by means Of larger taxa
ton Of swollen incomes and by heavier
death duties on large fortunes" disre.
garding the implication Of his first dec
1aration.
Taxation Not Cure
Contemplation OF the facts regarding
the huge advance In cost OF govern
ment and in taxation in America,
that the cure for economic, and socia
Ills Is more taxation. In the days wheT
taxation was lower and government
less obtrusive in private affairs ther'
was less unemployment than exists now
according to statements regarding un
employment conditions made by the ad
vocates of more taxes.
This would seem to support Presiden
Hoover in his contention that 1t is TIT
poor WHO must bear the burden Of in
creasing government costs.
The extent to which government cost
have grown can best be illustrated b.
an examination OF statistics, which
show that, while the population of tn
United States has grown only 26.o pc
cent since 1918, costs Of government
local. State and National. have grow
In the same period more than 345 pc
cent. They have more than tripled
while the population has grown far les
than one-third.
The combined costs of government Il
1918, according to exhaustive studio
made by the National Industrial Con
ference Board several years ago, wer
$2,9l9, 600, 900. and they had grown t
81, 124 600 900 in 1928. The country
population in 1918 was about 100000
Costs Exceed $4,000. OOO,ooO.