Evening star., 1933-02-01

The preliminary report of a commit
tee of Congress on double taxation in
| the United States Is mace the basis for
many protests against the existing con-
ditions. because the total burden is SO
| great that relief is believed to be neces-
| sary. Cooperation among the taxing
agencies is held to be the cnly means of
reducing the burden.
There is probably a saturation
point" according to the New York
Times, cat which tax rates reach their
highest efficiency and beyond which,
thanks to the readily available oppor-
tunities for investment in non-taxable
securities, they enter sphere Of dimin-
ishing returns. That this point has
been passed in certain cases is sug-
gested by the report OF the House spe-
cial Committee on Double Taxation.
1t shows that % States and Territories
have invaded the income tax field,
originally occupied solely by the Fed
eral Government. With a maximum
rate of 63 per cent fixed in the new
Federal revenue act and a maximum
Of 10 to Is per cent imposed in sone Oh
the States. about three-quarters OF the
net income in the highest bracket will
now flow into Federal or State treas
uries in certain cases."
THE States have the power" suggests
the Lincoln State Journal, Ito tax every
thing except gooos and wares entering
the country while the only limitation
on the Federal Government is that it
cannot levy a real estate tax. 1t does
not need to, since it can get at indi
vidual incomes in other ways. Not all
| of the States have sales, inheritance
| or income taxes, but the number is
increasing steadily. The Federal Gov
ernment levies taxes on all three, and
may have to widen its sales tax. Not
| long ago it reached out and taxed every
user of gasoline q cent a gallon, and
practically every State has gasoline
tax"
For some of these Duplicating levies,"
comments the st. Louis Post-Dispatch,
there is justification. The citizen
who earns an income benefits from
services rendered by both Federal and
State governments. 1t is quite in order
that both administrations should derive
part of their upkeep from levies on in
comes. But in multiple taxation Of
commodities, such as gasoline and to-
bacco, the result Is an overlooking Of
one item, placing handicap upon busi-
ness and the consuming public. About
half the retail cost Of gasoline in St.
Louis now represents taxes, and more
| than half Of the cost of cigarettes in
States that levy a tax on them. Nine
States now have general sales taxes OF
various forms, and this fact should be an
added deterrent to the move for Fed
eral levy of this nature. The army OF
| tax collectors and the necessity Of
making several tax returns figure largely
| in the economic waste of our tax sys-
tenn. One method that has
been suggested for cutting out this
waste is to have joint collection OF
taxes, as at present employed by coun-
ties in apportioning share Of their re-
townships, drainage districts and other
tax-supported functions. In the same
fashion, by cooperation between the
Federal Government and States, only
one return and one group Of collecting
officials would be required for income
and inheritance taxes, with the required
shares being distributed to the taxing
agencies. This would have wide results
| in reducing the bureaucratic armies
which now add to the taxpayers
burden
Debating that I'VE have enough forms
Of taxation" the Boise Idaho States
man protests that new forms are being
considered, with the comment that 'it
Is a truism that economy consists in
spent ing less money, not In finding new
and novel ways In which to extract
money" The problem Is set forth In
the San Antonio Express in the state
ment: Roughly, the Federal Govern
ment costs each person $40, the State
SIC, the county So, the city $25. other
local political divisions $40 . year. It
viii be noted that local government
/ a. h.
| considerably more than half the total.
Tsherefme - ohkain ulhGtantial relief