Milford chronicle., 1933-02-10
TAX CONFERENCE
PLANS OUTLINED
BY CRANTLAND
[COnfinued from Firt Pagrl


present left exclusively to the United
States and taxes on property, build
ings, land, automobiles, jewelry and
other intangible wealth, are left ex-
clusively to the States.
1.-THE demand for a general sales
tax seems to be more urgent as the
economic depression drags along,
and other sources of revenue are
being diligently sought in most all
of the states. The government at
Washington, having already invaded
the green pastures of the field of
state taxation; death-duties, income
tax and gasoline levies being among
the most profitable, it may be read
lily seen how difficult il will be to
cOnfine the taX-gatherer to his al
lotted grazing in the event of the
segregation and separation of
sources of income.
1.-The proponents of the crediting
device point with pride to the sue
cess of the Federal legislation,
which provides a deduction of 80
per cent from the amount of estate
tax payable to the government from
state death taxes lawfully imposed,
and the fact that this deduction was
preserved to the states in the recent
tax legislation of 1882. The ques-
ton now arises as to whether this
device is capable of extension to
other forms of state taxation now
invaded by the national government
income, gasoline, tobacco, and bev-
erages. 1t is claimed that these
taxes, by their nature, can be col
lected by the Federal Government
as are death-duties and that the re-
batting plan will apply in such cases
as effectively as the estate taxes.
income, became a major source of
all the states, gasoline levies are had
in all, beverage taxes are collected
in some, and tobacco, including sales
of cigarettes, is taxed in IA states
and many others are being attracted
to the same field in the search for
new sources of revenue.
All of these sources are being
used by the Federal Government at
present and in a number of the
states constitute dual taxation.
1.-THE National Government defin-
itely entered a state field of taxation,
several years ago, when q tax on in
diViduals and corporations, based on
income, became a MAORI source OF
revenue. In 1882 gasoline tax, orig
inallY regarded as a state tax, was
Imposed by Congress and such taxes |
are now levied by two Independent |
jurisdictions on different bases and |
by different principles. BY the same |
act of Congress beverages came un- |
der the collecting agencies of the |
Government. Tobacco has been tax
ed by the Federal Government for |
more than 100 years, and, as before |
stated, many States are now look
ing in this direction as fertile field |
for taxation. The law of diminish
ing re turns, over-taxation resulting |
in diminishing consumption, applies |
in all of these taxes. Evasion of in
come as by shifting place of resi-
dence, dodging gasoline tax through /
bootleggers, and failure to pay to-
bacco and beverage taxes by pur-
chase in adjoining jurisdictions,
cause reductions in the amount OF
tax receipts. 1t is claimed for the
crediting plan that this unsatisfac-
LOfy DC |
There was third school or
though present at the Interstate
Legislative Assembly, which ad-
vanced the possibilities of increas-
ing the role of the Federal Govern
ment as a tax administrator. 1t was
asserted with considerable conf
dence that this plan offered, one the
whole, fewer difficulties and greater
rewards than either the segregation
scheme or the crediting Device At
least the complaint of the taxpayer
because of two returns to be filed
with two different officers with many
differences in rules and regulations
would be materially curtailed. 1t
IS admitted that this plan involves
disputed points of constitutional in
representation, with vary diner- ,
,nces of opinion, founded on con-
iicting philosophers of government. :
Dual administration would be elm
mated by Federal administration, as ,
would also be the case in segrega- :
ion of sources, while the cost OF :
duplicate administration, Under the
rediting device permits the salts
action of collecting your own taxes
With attendant increase in cost. .
at was agreed by the Assembly /
hat the problem was full of dyna- e
rite and the formulation OF a plan I
vas placed in charge of a so-called u
committee, which was T
uthorized to treat with Congress s
n such proposals as are approved v
y two-thirds of the States voting 7
II the plan, which is to be submit G
I'd for approval at the earliest pos s
lble moment" vs.