Evening star., 1932-12-11
PARLEY TO TACKLE
DOUBLE TAX ISSUE
State Legislators Will Meet
Here in Effort to Evolve
Plan.

Alarmed at the potential conse-
quences Of the present race between
the State and National Governments
for the taxpayers dollar, a group OF
State legislators has decided to meet
here In February in an effort to work
out a plan to end this costly competi-
ton. which already threatens to kill
the goose that lays the golden egg.
Decision to call the meeting was
reached last night after a meeting of
the board Of managers Of the American
legislators Association, an organiza-
ton of members from the 48 State
Legislatures. The exact date for the
meeting has not been set.
It had been hoped to have representa-
tiveS of the House Ways and Means and
the Senate Finance Committees at
tend. but this plan has been aban-
dond, for the present at least. 1t is
expected those attending will include
the chair1nen of each State Senate and
House Finance Committee, the chair
man of the Tax Commission in each
State, group of about is experts from
the National Tax Association, and the
Governor of each State or their repre-
sentatives.
Research Committee Sought.
The primary object of the February
meeting will be the creation of a re-
search committee, which will 60 into the
problem primarily from a State point
Of view and report back to the parent
group, to be known as the National
Council on Taxation, as soon as feasible.
State Senator Henry w. Toll of Col
orado. director Of the Legislators Asso-
ciation, told his colleagues yesterday
some solution must be found to the
problem Of double taxation and the
need for ALLEGATION Of the sources of
Americas public revenue. He also
pointed to the necessity for creating a
suitable means Of negotiation between
the State and Federal Governments.
Asserting that the national income is
being bled each year for $4,000,000 900
by the Federal Government. $4,000
600, 900 by the States and S7,000,000 900
ment, he declared the ability of our
citizens to pay for government Is now
so seriously impaired as result of the
depression that even the current rate of
governmental expenditure is likely to
prove ruinous.
New Expenditures Noted.
"But apparently the current rate may
be increased" he continued, "for we are
witnessing new expenditures of breath
taking magnitude, such as those in
volved in the home loan bank act and
the stupendous operations of the Recon-
struction Finance Corporation. When
the Federal hypodermic needle shoots
a billion dollars into the arm of the
nation it costs an average of about So
apiece for every resident of the coun-
try, but inasmuch as most residents
have no property, 1t probably costs the
average property holder about $50"
Real estate has long been the prin-
cipal source of taxation revenue, and
President Hoover recently issued an en-
phatic warning that excessive taxation
in this direction must stop.
But" the State legislators say, at Is
not easy to stop Just at a time when
new sources Of revenue must be tapped
for State and local governments"
Until recently according to Mr.. Toll.
most OF the States have given the
Federal Government clear field in
the taxation of incomes. Many legisla-
lures, however, are now beginning to
feel that this is no longer possible.
Many legislatures are thinking of
initiating State incomes taxes at the
next sessions, although some observers
think the Federal taxes by themselves
are almost as high as the traffic will
bear.
Adopting Variety Of Theories.
"And incidentally" Mr.. Toll de-
clared, those States which have
already imposed income taxes are
adopting such variety Of rates and
theories that the State systems are be-
coming hopeless welter."
With Mississippi "joyfully and vocif-
erously waving them on" the legisla-
tors see the bodies they represent
about to plunge into an orgy of con-
sumption taxes.
ANY one who was present in the
halls OF Congress at the last session
when the sales tax felt the AK" Mr..
Toll said, "can easily realize the likeli-
hood that when a sales tax is next
considered there, the dice may fall
differently. 1t seems probable that we
are about to witness rather tragic
spectacle of double imposts upon every
article sold in America-when every
box of matches, every gasoline launch
and every spool of thread will be called
upon TO do its part in financing the
Federal Government and also in
financing one or more States"
Pointing to the already high double
tax on gasoline, Senator Toll asked:
Are We about to see contest in which
Congress and the legislatures will take
turns in loading additional pennies
upon each gallon of gasoline in order
to ascertain at what point the back OF
this volatile camel will break?"
Likewise in the case of tobacco, he
said, six out of every 10 pennies paid
for package Of cigarettes 60 into the
Golfers of the Federal Treasury, and
the States are beginning to look with
envious eyes upon this fruitful source
Of revenue.
Action Declared Vital
Roughly speaking" he continued,
"the States can tax everything except
imports, and the Federal Government
:an resort to every known means of tax
alton, with the possible exception of
real estate And If we are not careful,
both the Federal Government and ali
Of the States will.
"It seems to be absolutely imperative
that something shall be done about