The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-10-04
NJ. E.

II MERE is limit to local taxation because if
u driven to it, people can move. That is what
the Stock Exchange threatened and it sue
ceeded The New York City administration and
Its counselor Mr.. Untermeyer, will look for
other ways to feed the kitty but they can not
erase the red mark of stupid blunder
The reiterated warning that municipalities
must economic is not academic. 1t comes from
a pressure that taxpayers can not endure.
The success of our various recovery plans is
not SUFFICIENT to relieve the necessity for re-
trenchment by towns, cities and states. Some of
these plans involve higher federal taxes which
means an excessive burden if local taxes are not
reduced. Even if this were not So local taxes
ShOuld be reduced to Hberate capital for buyng
power and private enterprise
The redistribution of income as between the
cost OF government and the cost of living should
De recognized as an essential factor of recovery.
At present, about one-tlird of the nations in
come goes for taxes. Five years ago the propor-
ton was about one-SiXth
WTHEN President Roosevelt took office. he
W promised to cut operating expenses of the
federal government 25 per cent He realized
that such drastic reduction was necessary to
make adequate funds available for his national
recovery program.
An even greater cut was desirable on the part
Of local governments. Some of them have made
on the theory that the federal government
would pull them through, regardless New York
City furnishes the most vivid example of this
philosophy.
Like the Walker administration before it, the
OBrlen administration has made no serious eff
fort to curtail expenses. 1t has been vastly more
concerned with maintaining political machine
than with tightening the taxpayers load When
threatened with default it asked the legislature
for permission to make special levies on water
taXlcab fares, stock transfers and the insurance
business, which the legislature reluctantly gave.
The big idea was to keep political henchmen
on the citys pay roll at all COSTS to safeguard
Tammany for the coming campaign.
OOKING back over the past those in au-
IL thority appear to have assumed that the
people of New York could be relied upon to
react with their usual dumbness. They made
no allowance for the law of relatively, for the
last straw that breaks the caneI's back
Lacking an organization through which to
express themselves the water consumers and
taxicab riders took the dose until such time as
they could go to the polls. Not so the Stock Ex-
change. 1t was blessed with a management and
system of discipline which enabled it to act
quickly and forcefully.
1t merely organized its membership into a
new body, with seats at $1,000 per. leased a
building across the Hudson, and prepared to
start business in New Jersey That not only
spoiled New York City's tax scheme, but
threatened the state with an enormous loss of
business and revenue. A series of hastily called
conferences appears to have ironed out the
difficulty, with the city backing down and the
Stock Exchange staying at home. but the mis-
take remains to be judged next November.