Evening star., 1933-02-04
CHAMPAIGN T0AV0|D
t TAX OVERLAPPING
PLANNED IN STATES
Interstate Conference to
Take Drive Before Several
Legislatures.
MORE STUDY REQUIRED
FOR Definite PROGRAM
Committee to Be Formed to Collect
and Distribute Data Among
Lawmakers.

The Interstate Legislative Conference
of the American Legislators Association
today paved the way for carrying on a
campaign in State Legislatures for the
adjustment and coordination of Fed
eral and State tax systems to avoid
overlapping and conflicting levies.
This action was taken when the
assembly adopted a report Of a Com
mittee on Procedure, headed. by State
Senator Henry Parkman, jr., Of Massa-
chusetts, which opposed any definite
declaration of taxation policy by the
assembly. In presenting his report
Senator Parkman said that members of
the committee felt that this conference,
which was the first of its nature called,
could not set down any hard and fast
rules for taxation, and that it was the
idea that Continuing Committee of
the association be formed to collect
and disseminate tax data among the
State lawmakers.
A resolution embodying these ideas Is
being introduced this afternoon, and 1t
was said it would be adopted
In deciding against any definite
policy, the assembly followed out the
sentiment expressed by members who
felt that the problem OF long standing
sideration.
Against Definite Policy.
The difficulty in the way of the early
| settlement was brought out in debate
this morning when State Senator Edgar
Brown of South Carolina spoke in op-
position to the proposal that the As
sembly outline no definite policy. He
| favored an expression that would def
| nil y,y,t hn In,
| favor Of segregating certain forms of
taxation in States and other in the Fed
| eral Government.
DR.. C. B. McCulloch, delegate from
Indiana, differing with Senator Brown.
pointed out, for instance, that should
| the sales tax be left to the States, one
| State might adopt and another State
reject this levy to the consequent detri-
ment of business in the State where it
was applied. If income tax. he said,
were left to the State. the State would
be confronted with the situation that
the levy is unconstitutional in some
jurisdictions.
Through three sessions yesterday and
| last night at the Shoreham Hotel the
| delegates, who are members of State
legislative bodies, and fiscal officers
of their States heard the rami-
| fications of the tax jungle" that has
sprung up in this country treated from
| various angles, and it Is on the basis
of these deliberations that some pro-
gram IS projected.
Succeeding speakers, re-emphasizing
a thought of President Hoover, who ad-
dressed the opening session, made it
clear that no immediate solution may
be expected of problem that has been
increasing with the years. 1t was re-
peated, however. that the conference,
the first Of its nature ever held, fur
nishes starting point. There are 80
States represented here. and the del
egates express themselves as feeling
that their own State bodies, and those
of the other States not represented. will
be brought to a better knowledge OF
the whole picture of taxation by rea-
son of this conference, and be impelled
to unity Of action.
Overlapping Taxation.
At dinner last night, the Assembly
heard the subject of overlapping taxa
| ton discussed by two members Of a
| subcommittee of the House Ways and
Means Committee which has surveyed
the problem - Representative Vnson.
Democrat, of Kentucky, the chairman,
and Repres entative Chindbloom, Repub-
lican, of Illinois, a member Of the group.
Representative David j. Lewis, Demo-
crat, of Maryland, was another congress
sional speaker.
Representative Vinson told his hear
ers that the Federal Government was
not the lone offender in invading tax
fields already occupied by the states,
| but that the States likewise were cul-
pable, having gone into Federal tax
provinces
He said he fe.t certain that when
the time came to reduce taxes, Congress
would be glad to treat with the repre-
sentatives of States to see how duplicate
levies could be avoided.
Illustrative of the way the tax burden
In the country has grown. Mr.. Vmson
said the subcommittee study had shown
that in 1929, when the National income
was $50 900 GOO, 900, the tax was $10.-
| O00, 900 900, or a ratio OF one to nine,
whereas now, with the National income
reduced to between thirty-f1ve and forty
billion dollars, the tax is about $780,
100000, or a ratio Of one to four:
| Representative Chindbloom told the
Delegates that the message they should
bring to their States is that the people
back home" must qd4t their demands
for extensive Governmental services II
they expect economy. He criticised IN
particular those various activities car
ried on in the States on the basis OF
| so per cent appropriations from the
Federal Government.
| There must be an aroused public
sentiment against public expenditures
to get a reduction in taxation" he
| warned.
Representative Lewis asserted "Con-
gress has been deliberately excluding
the middle classes from taxation, :"
pointing to the disparity in rates on
| income tax and death duties between
this and foreign countries. Saying m
heritance levies do not start until the
100000 bracket is reached, that IN
come up to $2,500 IS exempted ior
married couples, and then citing the
range from those points, Lewis as
serted that mo country can maintain
itself on skyscrapper taxation"
1.-THE middle classes Of the United
States must face their duty in the
matter of sustaining their government, !"
he emphasized. "They are not doing 1t
now."
He suggested that there might be
q division of the inheritance and in
come taxes, with the lower backets
left for State levies, and the higher
for national. The Marylander said,
however, that he had no idea his sug-
gestion would be adopted.
Repeal Issue Injected.
Possibility of tax relief through modi-
fication of the prohibition, law entered
deliberations of the conference for the
first time yesterday afternoon when
delegates participated In a round table
conference Of problems Of their States,
at q session marked by the appearance
of Representative Ruth Bryan Owen Of
Florida.
| The issue was raised by State Repre-
sentative Mcmillan Lewis of Missouri
who said we're looking for help from the
tax on beer, when and If 1t comes" Mr..
Lewis, who represents the st. Louis dis
trict, said he did not vision the beer
/ 70 hut did eyraect It to