The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-28
Hoover and Taxes

President Hoover's address in Richmond to the
conference of Governors was one of the best that
has come out of the White House in this admnistra-
ton 1t should serve the double purpose of focusing
public attention the need for economy and tax re-
FORMS and also the fact that the problem of state
and local expenditures is serious than fed
eral expenditures
Federal expenditures account for less than 80 per
cent Of total governmental OUTLAWS In eight years the
cost of federal government has risen only from
$S,eOOOOO,OOO to $45OOOOo0oO compared with an in
crease in state government from $4600 5000 to
$4,000, 900.
AND the cost of federal government is largely a
matter of war and preparation for wars-22 per cent
for preparedness 81 per cent for debts and 10 per cent
for veterans relief which leaves only about % per cent
for al other government activities
The cost of federal government within that % per
cent can be lowered by eliminating heavy prohibition
costs and by decreasing red tape but by and large
federal expenditures are apt to go up rather than
down.
There is a wider eeway for cuts in state expendi-
lures where there probably is more extravaganza and
waste than in federal government. Construction
projects lead some states close to bankruptcy.
The largest part of state expenditures "a per cent
goes for land and improvements with education TAX
ing "a per cent highways IL per and charities
hospitals and corrections 10 per cent
Distribution of the cost of local governments is SIM
liar to that of states; 2S per cent going for land and
improvements 81 per cent for education II per cent
for protection, the chief difference being in highways
on which the local units spend only per cent.
Some saving in upkeep of state and local govern
ments can be made through Capitalization and elirni-
nation of small and overlapping units through curb
ing widespread graft and waste and through slowing
down public construction programs
But it is unlikely that the American people over
period OF years will be content to spend less schools
hospitals roads, and the other large items of expense
Hence-whether like it or not-much of the
budget balancing of communities states and nation
during the next decade will consist not so much in
cutting expenses as increasing or shifting taxes.
Need of liquor tax is obvious though the Pres
dent forgot to mention it.
We agree heartily with Hoover's statement that
the tax burden upon real estate is wholly out of pro-
portion to that upon other forms of property and in
come" and that other and farer methods must be
found
We believe in broad base income and estate tax,
with progressively higher rates of the type which has
worked so successfully in England If the Republican
administrations had not refused permit our income
tax to build up in good times for use in bad
times, the federal government would not be in tax
difficulties To-Day.
In normal times there is enough taxable income
in the country to defray costs of government at about
the present level provided the taxpayer gets useful
service for his money-nstead of having to spend so
much of his tax dollar on wars and on local waste.
Senate Office pay rolls show that way to be sure
way of having job all the time is to be relative
of some senator.
Germany will pay reparatons, its foreign
minister says. What does he mean by more?
Y M. c. A. worker from South America says
the people there think of the United States as ma
ton of gangsters Well, what do the people here
think?
Just Every Day Sense
BY MRS. WALTER FERGUSON