Evening star., 1932-02-20
DRASTIC COST CUTS
EASE TAX BURDEN
DefIation of City and State
Expenses Reported to
Realty Boards.
Current movements seeking drastic

Current movements seeking OraStlC
"deflation' Of city and State expendl-
lures this year and for long-term bet
terment of the whole tax structure,
based on study OF all economic factors,
represent strong public impulse. the
National Association Of Real Estate
Boards stated today.
Strength of the two programs Is
shown in the reports submitted to the
realty body at its recent annual busi-
ness meeting in st. Louis, where a
series of Executive Committee meet
ings, delegate discussions and round
table conferences was held to unity
proposed action by real estate taxpay-
ers, the association reports.
Spokesman for various States and
cities weighed objectives. considered
means and exchanged experiences at
the St. Louis meetings, details Of
which are published today by the asso-
citation. It is planned that action seek
ing tax relief will be taken through the
property owners division Of local men,
ber boards.
Pittsburgh Rate Cut.
"a cut of 10 per cent in the 1882
city tax rate, achieved through sys-
tematic s3,O00O00 pruning Of the
budget, was the story Pittsburgh had
to tell. A 10 per cent reduction IN
total State and local budgets is re-
ported for Iowa" the association re-
ports. In that State real estate, repre-
senting half the wealth. Is paying SO
per cent of State, county, city ana
other local taxes. exclusive OF auto
mobile and gas taxes. Indiana, whose
system Of State budget control IN re-
cent years has eliminated some
s9l,O00,00O in proposed local tax
levies. now has a strong movement on
to reduce existing tax costs, as a step
to hasten business recovery
The convention reviewed detail by
detail the proposed tax program for
real estate submitted by DR.. Simeon E.
Leland, associate professor OF eco
nomics, University Of Chicago, its tax
adviser.
The proposed program, characterized
as the first complete tax platform ever
SO framed. by action of the directors
was placed in the hands of member
boards, without recommendation, Tor
study and for their information in con-
nection with the tax action they are
now planning.
The Governor of Missouri, Henry S.
Caulfeld, who holds tax adjustment to
be part of his job, opened the conven-
tion, responded to its key subject mat
ter offered cooperation toward the
elimination of waste in city and gov
ernmental operation.
Speaking for Indiana, Senator Joe
Rand Beckett, Indianapolis, credited the
Indiana Plan" of budget control with
saving the State not only millions OF
dollars through veto of unnecessary
local tax levies and bond issues, but
millions more through the moral effect
Cn administrative officials OF that veto
power. Total Indebtedness Of all gov
ernment units in the State is now less
than 4 per cent OF the states total
assessed valuation.
Relief Cited in Indiana.
But, he said, the average worker, S
income in Indiana in 1913 was S368
his tax payment S58, leaving $31C
for private spending. In 1929 the in
come had grown to 1919, the tax slice
to s2O8. leaving a remainder OF S6al
In 1881 the income was down to S5O6
the tax portion was still S205, leaving
only S3Ol for private spending. Def1a-
ton of government costs in proportion
to private dehation, he held. would ad-
vance business recovery.
How real estate taxpayers OF Pitts
burgh. by systematic search for items
in which economies could be made,
succeeded in lowering the city millage
~ per cent Was Lie IcStAlloily OAACi GU
by r. L. McKallip, chairman Of the
community research bureau OF the
Pittsburgh Real Estate Board. The bu-
reau, employing an expert budget
maker. made a four-months study OF
the 1881 budget. recommended to the
City Council cuts totaling 100000.
In Shelby County. Tenn. in which
Memphis is located, the local property
owners division, reviewing the bud
get with tax officials, helped find cuts
totaling 100000, thus reducing the
tax rate cents
J. Frank Lindsey. Chicago. who
spoke for Illinois. cited recent Cook
County court decision in a test case,
brought by the Oak Park Real Estate
Board, which voided the 1880 tax roll
on the ground that failure Of tax Of
ficials to include some $4,000, ,0O0,O 900
of tangible and intangible personal
property constituted fraud. The case
was brought to emphasize the Unequal
ity of the present uniform rule" of the
Illinois constitution (adopted 1848)
under which Cook County real estate,
valued at S9,000,0 100000. pays 80 per
cent of the tax total. Tangible and in
tangible personally. valued at $30,000,-
100000. pays IL per cent,