Evening star., 1933-01-19
PARLEY TO STUDY
DOUBLE TAXATION
State and U. S. Legislators to
i Face Vital Issues Here
In February.
Special Dispatch to The Star.

special Dlspatcn 10 Inc StAI.
CHICAGO, January 19-The problem
Of double taxation, the need for allo-
cation Of this country's sources of pub
lie revenue, and q plan for organizing
negotiations between the States and the
Federal Government on reevnue mat
ters, are considerations confronting
the first conference Of State and ma
tional legislators.
This conference. scheduled for WASH
1ngton, February 3 and 4. Is organized
by the American Legislators AsSo-
citation, with headquarters here, repre-
senting the law-making bodies Of the
48 States. It seeks some way out OF the
existing chaos in tax methods, due to
49 separate systems Of taxation.
THE ability of our citizens to pay
for Government is now SO seriously i'm
paired that even the current rate Of
prove ruinouS," explained Henry w.
Toll. director Of the legislators asso-
citation, in outlining the nature Of dif-
ficulties to be overcome.
Rate May Be Increased.
But apparently the current rate may
be increased" he added, for we are
witnessing new expenditures of breath
taking magnitude, such as those in
volved in the home loan bank act, and
in the stupendouS operations of the
Reconstruction Finance Corporation.
When the Federal hypodermic needle
shoots billion dollars into the arm of
the Nation, it costs an average of about
So apiece for every resident of the
country.
ITO make an impossible situation
worse, We have the Federal Govern
NJ hn tot
petlng with each other, as they clutch
at every available straw of revenue. We
have only one single national income.
This single income is being bled for
$4,000, 100000 for our Federal Govern
ment, $4,000, 100000 for our State gov
ernments, and $7,000,000,O00 for our
other subdivisions of Government.
The State Legislatures are casting
ravenous glances at the potential pro-
vender of income taxes and Of sales
taxes. The Nations revenues from in
come taxes from inheritance taxes and
from import duties all are shrinking,
Congress consequently, IS casting raven
GUS glances in the direction of more in
come taxes and more consumption taxes
Even if the Federal Government
were not in the picture, the lack of
uniformity among the 48 States and
their systems of taxation is beginning to
play economic hob by continually dis
urbing the equilibrium among the
States"
In meeting the problems before them,
the legislators and congressman at their
Washington gathering have a number of
questions to deal with.
Want Practical Plan.
First, they plan to consider whether
1t is desirable to set aside certain
sources of revenue for the exclusive use
of the States and certain other sources
for the exclusive use of the Federal
Government, if so they want to devise
a practical formula for this ALLEGATION.
Then there is the problem of de-
termning the State and Federal juris-
dictions in case both governments are
to levy taxes upon a specific source of
revenue. Where a specific source of
revenue is taxed by both Federal and
State Jurisdictions, there is the ques-
tion of joint administration of the tax
in the interest of'economy.
Besides, in cases where States feel
that the Federal Government Is en-
croachlng on its revenue preserve, there
Is the matter of determining the form
of opposition or negotiation with the
national authorities.
Roughly speaking" said Mr.. Toll,
"the State can tax everything except
imports. and the Federal Government
can resort to every known means of tax
alton, possibly except the taxation OF
real estate. And If we are not careful,
both the Federal Government and all
of the States will do so.
1T seems absolutely imperative that
something should be done about this tax
muddle. BY some hook or crook. the
taxing programs of our 40 legislative
bodies must be developed into single
coherent system
Copyright, 1933)