The Waterbury Democrat., 1933-01-19

consequence locally unless the tax payers fix tho rate, administer the laws, and arc themselves to feel tho weight of the tax load which | they impose upon themselves. Little or no effective resistance to local spending is observed unless the spenders arc the taxpayers. Tho collection of tax moneys by ono government, which are to be given to another government to spend, is Q policy which through n periol Of years can have ono result wher- ever tried"
 Decline In Receipts
 Commissioner Blodgott's report notes at length tho decline in fod- eral, stato nnd local tux receipts Of Connecticut, during tho last two years, attributable to unfavorable business conditions.
 'HTho increased overhead costs which tho stato must bear in maln- tainfng now hospitals and enlarged humane and corrective institutions, together with tho increase In state paupor costs. constitute tho main Items or increased stato expondl- lures during tho bionnlum, which With others, quito numerous but not so large, arc to bo reflected at tho close Of tho current fiscal year Tn m estimated general fund de- Holt of betwoon $7,000. .000.00 and $8, poo, ,000.00," ho states.
 This calls for an item.by-item study of the state budget and a drastic roduclon of appropriation by the forthcoming session of tho general assembly, tho elimination or essential activities calling for expenditures of state money, ana, aS n measure of last resort, tho increase of rates of taxation or tho imposition of now taxes. Connecticut has moro government or moro expensive government than It's people cnn afford to pay for at thls timo.
 Stability Of Return
 "Tho need of correcting tho stete'B source or revenue hnS been aecontuatod by tho sharp doeroaso or returns from tnX lovlos imposed upon various groups of taxpayers. rho purpose of taxation Is to sup ply money whom needed to moot tho ossontlnl requirements of gov ernmont. Forms of taxation such as taxation of not Incomes, from which excessive roVonuo is received during periods of prosperity but which nro unreliable as producing relatively llttlo roturn in periods of business advorsty, should give way to and bo supplantod by forms or taxation which will furnish sta- blllty of roturn. Forms of taxation whore return iluctuntcs excessively | plunge governments into financial dii'lcultleS In period of stress, from which they can b0 oXtrlcated in no other mannor than by action which Is necessary and most drastic. lfx- eessiVo receipts whom business is prosperous, with attendant oXces- slVo overhead costs, habltual waste oarofreo management and tho pro- cosseS or overwhelming govern. mental activities at public expense nro WoaknoSseS not soon until brought into relief in periods of depression whom revenues vanish, | stability Of monoy roturn to tho tronsury through all business con- dltlons iS tho first great essential or sound tux structure. Second in importanco iS tho requirement. that It spread tho tax load as widely ns possible, thus reducing tho rate
 una Injustice ns among taxpayers to tho minimum. Third in impor- tahco iS tho necessity of shaping tho administrative features of tax statutes In manner to cause the least annoyance to taxpayers. Tho fourth consideration is that of cost or administration, Annoyance to tax-payors and friction between them and tho taxing state being avoided, excessive overhead costs aS Il general rulo tako care of themscl yes and Nro either moder- ato or low.
 . Need or Adjustment
 rho taking oVor of real estate by Foreclosure and otherwise by money-londing corporations and tho allowance of taxes paid on real estate nS C deduction from savings deposits md from stock taxes othorWiso imposed ronder receipts rom thoso sources moro uncertain nnd relatively less conseauentinl than heretofore. Tho tax on such shares is quite likely 10 Do Q mat. ter largely of academic concern in towns m tho future which have long boon recipients annually of substantial amounts thorefrom, and tho state's receipts for tho hhme ronson are likely to bo great- " diminished from tho tax on sav- lngs 0s well as from the tax on non-resldont shares. Tho unfortu- nate tendency of theso times Is toward bringing m increased amount of real estate into possos- sion of business organizations of all kinds which lend money on real-estato security. The statutes Imposing tho taxes mentioned should be corrected in such man nor as 10 stabilize the return there- from, if such impositlons are to continue, adjusting tho rate of tax ation upon such deposits and upon the shares as necessity dictates to avoid m excessive levy upon prop erty Of tho kind. Towns wherein LaAs n4n \. ~aAA Hn