The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-01-28
MANY CASES OF
DOUBLE TAXES
ARE REVEALED
326 Instances When LevieS
Are Made by Both u. S.,
States Are Aired.
BY MARSHALL MCNEIL
Times staff Writer


least 326 duplicate taxes were
among the long list of levies that
caused taxpayers to give up more
than ten billion dollars to their
various governments last year.
There were, and are twenty-three
Implications Of income taxes on in
dividuals; twenty-five states and
the federal government taxed the
incomes of corporations; nineteen
other Jurisdictions levied on oleo-
margarine and adulterated butter
along with Uncle Sam; five states
and Washington taxed admis-
sions to theaters, boxing matches,
ETC., and fifty Jurisdictions together
with the federal, taxed gasoline.
Take the last tax as an ex-
ample. The house sub committee
on ways and means that just has
completed its preliminary studies of
double taxation found that the
United States, every state, Hawaii |
and the District of Columbia i'm
pose separate gasoline taxes, the
range being from to 7 cents; and |
in Tennessee and Florida, which !
have the 7-cent tax, the actuel
charge is cents with the penny
federal tax added in.
Gasoline Tax Cited
The committees experts made the
example a little more explicit by
citing the gas tax paid by citizen
of Mobile, Ala, who purchased 623
gallons of fuel in a year.
His federal tax would be 1 cent |
gallon, or a total of 1928; to the
state he would pay 1928, at the
rate of 6 cents gallon; to the
county he would pay $685., at the
rate of is cents a gallon, and to
the city 1928, at the rate of l cent
a gallon. His total annual gasoline
tax would amount to- $59.19.
A resident of Palatka Fla, using
the same amount of gasoline, would
pay a total tax Of $56O7, according
to the committees figures; and a
resident Of Harrison county Missis-
Sippi also would be somewhat af-
fected by the general sales tax of
that state.
IF gasoline is classified as a ne
cessity, as undoubtedly it must be
in many cases." says the house sub
committees report, then the tax
burden is unprecedentedly high for
a necessity"
Income Levy Examples
The same report furnishes clear
examples of the duplication of in
come taxes. 1t cites the cases of
three individuals with incomes of
100000 who live in Wisconsin,
Maryland and New York.
The New Yorker pays to his state
tax of approximately $2,75O, and
to the federal government $780, $50, a
total of $4,000.
The man in Wisconsin pays $11 100
as state income tax and $4,000 as
federal income tax, total of S38, 900.
But the Marylander is required to
pay only the federal tax, his bur-
den in this instance amounting to
only about $301O
None of these rates is confisca-
tory. But their fairness will not be
Immediately apparent to the tax
payers in New York or Wisconsin.
Three Big Questions
Thus, these examples raise three
important questions that must be
answered by any proposal to meet
the issue of double taxation The
house committee report phrases
them this way:
l. What taxes are most adapt
able for use by the federal govern
ment and what taxes are most
adaptable for use by the state gov
ernmentS?
2. In what cases may double tax
alton be properly tolerated?
3. What means should be adopted !
to develop model tax system and |
to bring it into practical operation? |
These are the three questions that |
will concern interstate conference OF |
legislators. which willmeet here Feb. |
3 and 4, to deal with the problem of
conflicting taxation.