Evening star., 1933-02-03
HOOVER DECLARES
TAXBURDENREL|EF
MOST VITAL NEED
President Hopes Interstate
Conference of Legislators
Will Find Solution.
"MAIZE OF OVERLAPPING"
BY STATE AND U. S. EVIL
Farley Opening Here First Of Its
Kind Ever, Held in This
Country.

Declaring that the people must have
some relief from their tax burden" in
view of the present economic situation,
President Hoover today told confer
ence of representatives from State gov.
ernments throughout the country,
called to discuss the problem of over
tapping taxation, that their delibera-
tions furnish an opportunity for "a
contribution of the first importance" to
the general welfare.
The conference, called by the Ameri-
can Legislators Association, composed
Of members of State Legislatures,
brought together lawmakers and fiscal
experts in what was designated as the
first interstate legislative assemblies
ever held. The sessions are being held
at the Shoreham Hotel.
The President told the gathering that
he had been long interested in seeing
the convening of this conference, which
is studying those forms of taxation ap-
piled by both Federal and State Gov
ernments He said there is no CO.
ordination in taxation and that the
"haphazard development Of sources Of
taxation" in Federal, State and local
Governments has produced perfect
maze" of taxation.
The President said he did not an
ticipate solution of this old problem
out of this meeting, but that he was
hopeful start would be made. and he
promised to give ANY measure of CO.
operation that Federal authority can
afford"
Text of Address.
President Hoover spoke in full as
follows:
1T is a very great pleasure to vel
come this first Inter.tate Conference OF
Legislators to Washington. The sub
ject CT your discussions is one of the
mcst important problems before the
Nat.cn. The Gepressi-n has naturally
made the Nation urgently conscious Of
the tax burden, but the problem Is much
older than that. The evolution Of gov
crrmsntal functions CT municipalities,
townships, counties and States has led
to haphazard development Of sources Of
taxation to support these functions.
The result has been a perfect maze Of
overlapping, conflicting tax syctens,
with inevitable inva-lons by cne au-
tholity of tax areas properly belonging
to another authority. If your confer
ence can help to make a scientific
division of tax sources amcng the gov
ernmental authorities you will have
made a distinct contribution to the
efficiency as well ss to the economy Of
our whole governmental system.
Hopeful of Results.
II don't expect and I don't believe
you expect that you will evolve COM
plete system at this first session, but
the very fact that you have entered
upon the problem, that you bring it
prominently before the Nation, that
you secure that thought shall be di-
rected to it. will be contribution of
the first Importance.
Il warmly hope that your deliberation
will produce fruitful results in a most
important field. Cur economic situa-
ticn is such that the people must have
relief from tax burdens. A decrease
in income. whether in an individual or
in government, requires decrease In
its expenditures.
Likewise, it implies and necessitates
a balancing of budgets, and in all of
the maze of problems that we have to
consider to attain those aims, there Is
none more important than to arrive at
some basis of taxation that can be
eQultdDly OlNlueu dulOllS Jul 6ONClA-
mental agencies, and in that I look
this assembly.
so I wish you all the success in the
world. I would be glad to give you any
measure of cooperation that the Fed
eral authorities can afford. I know
that on the administration side we will
be glad to cooperate with you in every
particular. Thank you for coming and
undertaking the services which you are
giving"
Mr.. Hoover remained only long
enough to make his address. The audi ,
ence arose and applauded as he entered
and again when he departed.
Warning Issued.
The conference heard warning from |
Franklin S. Edmonds of Pennsylvania, |
president of the National Tax Associa- |
ton and former chairman of the Penn |
Sylvania State Tax Commission, on the |
trend for double taxation. where one |
jurisdiction sees. that another has de- |
veloped productive tax and then ap-
plies like levy.
The joint pressure of the two jlris- |
dictions may result in injustice, inequity
and eventually the elimination of the
revenue desired" he said.
Mr. Edmonds pointed to tobacco and
gasoline as two illustrations. There are
now IA States which have imposed their
own taxes on tobacco products, he said.
AS for the double tax on gasoline, he
said that while two independent juris-
dictionS taxing the same product on diff
ferent bases and by different principles
may justify their actions as constitu-
tional, they cannot obtain any support
on an appeal to common sense"
Continuing. he said, 1T is noteworthy
that with both of these products over
taxation has resulted in diminished
consumption. The gasoline consump-
tion in the United States for the first
six months of 1882, as compared with
the first six months of 1881. indicated
that in the States where the rate was
Z cents there was a 81 per cent in
crease Where the rate was cents
that was decrease of 1.3 per cent, and
the decrease continued with q higher
rate of tax until, in the States that had