Evening star., 1933-02-03
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a cent tax the decrease was 1873 per
cent"
Mr.. Edmonds suggested uniform 4
cent tax on gasoline applied by the
Federal Government, which would turn
cents back to the States.
Mr. Edmonds said, in his opinion,
sales tax in general should be imposed
and collected by the Federal Govern
ment, either with an ALLEGATION of 2
portion of the revenue to the States
divided upon the basis Of sales, If such
basis can readily be determined. or, II
not, upon the basis Of population.
Income taxes, whether personal or
corporate, and States taxes, he said,
can be dealt with by allowing deduc-
ton Of a certain percentage for state
taxes actually imposed and paid.
Property taxes and licenses, he con.
tinued, belong to the State, and should
be dealt with by the State exclusively.
Pleads for Home and Farm.
Another speaker at the opening ses-
sion was Clyde L. King, former secre-
ta-y for revenue and finance of Penn
sylvania, who told his hearers that I'VE
must take the greater burden of taxa
ton from home and farm declaring
that these sources pay more than one
half of the total tax burden. To do
this. Mr.. King said he believes it will
be necessary for the States to go into
fields now occupied by the Federal
Government. He pointed out that until
this past year State governments had
had valuable tax source to themselves
in the levy on gasoline, but that now
this had been invaded by the Federal
Government.
Another problem. he said, which must
be considered is that of relief, neces-
STATED by the depression. He empna-
sized that this is costing more than
the States can save otherwise or can
raise eQuitably by taxation.
Robert Murray Haig, professor OF po-
litical economy at Columbia University,
suggested as solution OF connlctlng
taxation the assignment to the Federal
Government of all those types OF taxes
in the administration OF which 1t pos
sesses a substantial advantage as COM
pared with the States, with provision
for such a division of yield with the
States as is appropriate to the functions
assigned to them on the basis OF eft1-
cheney.
Federal Administration.
Translated into specific tax pro-
gram" Prof. Haig said, this arrange
ment would require, feel certain, the
Federal administration OF most OF the
taxes on sales and consumption. and
I suspect, the Federal administration
of death duties and personal and cor
10
There are objections to this program
he said. the most serious of which he
described as the fear that mo just and
satisfactory basis of distribution can be
agreed upon" He added that solution
in the case Of some taxes would be
relatively easy, particularly as regards
gasoline taxes, personal income tax and
death duties.
FOR example" he said, "an States
impose gasoline taxes, approximately
on the basis of consumption within
their borders and there is considerable
complaint about evasion. Suppose the
Federal authorities would consent to
add to their tax on gasoline. collected
additional rate on behalf of the States,
the yield of which would be distributed
according to estimated gasoline con-
sumption In the case OF the personal
income tax, the State of residence
should be a satisfactory basis for dis
tribution. In the case of the death
duties, it should be possible to arrive at
a basis for the distribution from
Federal-collected tax, which would per-
NIT the elimination of the costs Of dual
administration involved in the present
crediting plan, which applies on in
heritance tax. for instance. there is a
reciprocal arrangement between Fed
eral and State governments"
The speaker said conflicting taxation
produces wastes. inconvenience and
perhaps inequities.
Segregation Discussed.
Henry F. Long. commissioner of cor
porations and taxation of Massachu-
sets, discussed the problem of segre-
Federal and State jurisdictions.
1T would seem to be high time" he
said, "that all taxing jurisdictions make
a determined effort to find their actual
governmental requirements and to ad-
Just them to their actual ability to pay
If there is any thought that allour cit
izens should be contributing something
toward meeting governmental! cost, then
general sales tax, universally ap
plicable throughout the United States,
would meet the requirements of those
who feel that a widespread tax con-
sciouSness Is necessary to curtail gov
ernmental expenditures"
William B. Belknap Of Goshen, KY,
president of the American Legislators
Association. in his welcoming speech.
said that the organization is trying to
bring about proper regulation Of tax
alton.
Tonight, at dinner. members Of a
subcommittee of the House Ways and
Means Committee, which is studying
double taxation, will be guests. There
also are luncheon and dinner meetings
scheduled tomorrow.
Out Of this conference the partici-
pants are hopeful that there NAV be
some group formed to confer with Fed
eral ofiicials on the general subject Of
CO. -ordinating tax systems.