The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-13
TAXES DEvOUR
81 PER CENT
OF INCOMES
Every Man Pays Heavily,
Even II Collector Never
Calls at Door.
STEADY RISE is SHOWN
Wages for 100 Days of
Every 300 Go for Cost of
Government.
BY RAY TUCKER
Times stan Writer

WASHINGTON, May 13-Need
for federal, state and local economy
was shown wildly today in COM
pilation OF reliable statistics which
reveal that more than 81 per cent
OF the national income is eaten UP
in paving the cost Of government.
through taxation of one form or an
other.
This means that almost one-third
Of every mans income Is taken ont
of his weekly pay envelope simply
to sustain the various kinds Of gov
eminent which provide him with
safety and conveniences. II he earns
500 a week. he pays out about S3l
a week. If he makes only $50, he
paws out a little more than $40.
Not even a staggered system OF
taxation eXempts him from pay
ment. for he must pay, directly on
indirectly. Although the tax collec-
tor may not await him at the ONCE
or factory door, nor ever send him q
tax blank. every man and woman
engaged in gainful employment con-
tributes almost one-third Of his
working time to working for the
government.
Contributes 100 Days
It amounts TO nearly two days
week, or about 100 days out Of every
300 working days in year.
President Hoover. governors OF
various states, and other officials
often have referred to these figures
in seeking to impress the need for
cutting down public expenditures
on the country.
Among the agencies which have
compiled them are the National In
dustrial Conference board, the Ma
tional Bureau of Economic Re
search, and the Guaranty Trust
Company, all of New York. They
present elaborate studies OF national
income and outgo.
The national income represents
the total of wages, salaries, profits,
interest, and dividends paid to in
dividuals and corporations. The
cost of government embraces every
service which the federal govern
ment, the states, the cities, the coun-
ties, and even smaller Subdivisions
perform for the citizen.
Over Wide Range
They range from building and
maintaining navy for defense TO
repaving a nut in the road outside
the taxpayers driveway. The cost
of government, so far as it affects
the citizen in this computation,
consists of taxes: he pays them
whether or not he makes an in
come tax return, owns real estate,
or has stock in his bureau drawer.
Even If there we're no depression,
the startling increase in the cost Of
government is regarded by econo-
mists as a grave threat to national
solvency. The slump, which has
brought lower tax receipts and new
demands on the public treasury, has
accentuated the spending proclivities
which rose sharply with the World
war.
Figures Are Given
The relationship between national
income and national outgo graphic
ally is reflected in the following fig
ures for typical years:
Educational income, $34 AGO.
100000; cost Of government. $780,
100000. The expenditures we're
per cent of the income. In other
words, 8 cents out of every dollar,
or SO out Of every Sl00-a-week pay
envelope went to the government.
l929-National income, S85 ,000,-
100000; cost Of government, $1,000
100000. The expenditures amounted
to Is per cent Of income.
1930-National income, S71 ,O00,-
000, 900; cost Of government, $1,000
100000. Expenditures ate up 10 per
cent Of income.
.1931-National income, $4,000
100000; cost of government, $4,000
100000. Outgo was 81 per cent of
income.
1892 ed)-Nationa income,
s45, 900 900, 900; cost of government,
s14,000000,000, or 81 per cent of the
total tax receipts.
Higher Taxes in Future
Increasing expenditures have
been met partly by increased taxes
and partly by larger borrowing.
which means higher taxes in the
future. Total public expenditures
in recent years steadily have ex-
ceeded tax receipts. until the aver
age annual increase of all govern
ment Indebtedness has been $780,
100000
Reduction in the national debt
kept this figure down until a few
years ago, but now even the federal
government is deep in the red.
The debt accommodating for pres
ent and future citizens to discharge
through taxes almost equals the
money cost of the World war from
the United States. The federal debt
at the end q the current fiscal year
viii amount to SIG 300, 900 900.
The states have a net debt of
81 .e32. 900, 900. and the 1890 debt for