Evening star., 1933-12-15
ideal TAX PLAN
+ LAID BEFORE U. S.
New York Tax Commissioner
Advocates z Per Cent
Sales Levy.
By the Associated Press.

ALBANY, N. Y, December 15.-Tax
Commissioner Mark Graves, who has
helped States from Maine to Ca]ifor-
mia with their tax problems. outlined
for the Associated Press. today the
ideal tax plan" he has laid before the
United States Treasury. Graves pro-
poses a per cent Federal sales tax.
Graves is president of the New York
State Tax Commission and a close
friend of President Roosevelt. He
helped New Jersey, California and llli-
nois overhaul their tax systems, and
most of the 48 States have sought his
=, advice.
Text of Tax Plan.
When Mr.. Roosevelt was Governor,
Graves was his closest financial ad-
wiser. His ideal plan" Is presented
publicly for the first time:
1T seems logical that the business
Of tax collecting can best be run, just
as our most important businesses are
run, on national scale. BY this 7
do not mean that all taxes should be
collected by the Federal Government.
There will always be variety of minor
taxes for the State and its communi-
ties to collect, but our major taxes can
DC cAlIpl111CO dllQ uIllllcQ Wy dQSu CooliiS
them from national standpoint.
present system:
Every State has a gasoline tax, COL
lected at heavy expense from thousands
of distributors and in some States from
filling stations. With a Federal tax
the same collections could be made
from about 500 refiners, having 300
plants.
Outlines Collection System.
"In the main the 10 billion dollars
it costs to support local, State and
Federal Government should be collected
somewhat after this fashion: e.
"Q) Tariffs, duties and customs to
remain purely Federal sources of reve-
"(2) Real estate taxes to be levied
only by units of local government within
States, and spent entirely for their pur-
poses.
"(3) Personal income taxes now are
collected by the Federal Government
and 26 States Every person under the
Stars and Stripes should pay the same
rate of income tax. Let the Federal
Government levy income taxes at the
maximum rates economically justified
say to 33H per cent. Half of this
crediting against the Federal tax, up to
one-half thereof, income taxes paid di-
rectly to the States.
80 Corporation tax to be handled in
the same manner. 1t should be a COM
fort to an industry to know that COM
petitors in other States carry the same
tax.
Two Per Cent Sales Tax.
"(5) A 2 per cent sales tax. to be the
basis Of Federal finances. Probably a
manufacturers tax, such as has been
talked OF in Congress, would be better
than retail tax. Let the Federal Gov
eminent keep half, and divide the other
half among the States on the basis of
population. The States will share the
revenue with their communities.
"(6) Alcoholic beverage tax There's
tax like the sales tax which the Fed
eral Government could very p1uch bet
ter administer. Under the plan now
being considered at Washington. the
Government can tax all drinks at the
source-the distilleries, refractoties or
breweries, half the revenue being shared
with States
"(O Motor fuel tax, also to be feder-
ally collected. States would get their
shares without having to check up on
all filling stations and guard against
bootlegging from other States.
Under such set-up, the States
would gain millions of dollars revenue.
Their gain would be the Federal Gov
ernment's loss. and that is where a ma
tional sales tax would help preserve the
Governments financial condition.
Manufacturers in one State then
would have no advantage over those in
another State. There is no doubt that
New York's retail sales tax of / per
cent is driving some business to other
States.
only 16 States have sales tax now,
but unless something along this line is
done, it is certain all States will have
the tax within five years"