Evening star., 1934-12-16

Increased taxation in present chan
nels and new subjects of taxation are
favored for providing the cost of re-
covery in most States. Others, con-
sidering that the tax burden has
reached its saturation point, incline to
drastic reductions of Government ex-
penditures to compensate for the grow
ing demands on the State purse.
Still third group of legislators plan
a nice combination of the two, holding
down inevitable tax increases by d
consolidation of duplicating govern
mental functions.
New York State will need to raise
$3.50 900 900 in new revenue to meet
last years 500, 900 900 deficit and this
years slump in tax returns. Repub-
licans urge 2 per cent sales tax. but
Democrats, in control, are silent. Their
plans seem to indicate emergency in
creases in income, gasoline and cor
poration taxes.
Lawmakers in Pennsylvania are as
sured of the need for an additional
s178 500. 900 to balance their budget.
The greater portion Of this is designed
for unemployment relief. Possible
sources for the revenue are State in
come taxes, retail sales taxes. occupa-
tional taxes, additional gasoline taxes
and increases in the gross receipts tax
on utilities and capital stock tax.
California Faces Deficit.
A biennial increase of s92 900 900
must be made in revenue in California
if the budget is not to go out OF bal
ance on the basis Of present expendi-
lures. This does not include any re-
lief expenditure. which conservative
estimates put at $4,000, 900 for total
budget of $3.50 100000 Increasing
school costs and abolition of State
property taxes has caused the prospec-
tive deficit Retention of the sales tas
appears inevitable, with possible ex-
tension of its field Other proposed
revenue means are increases in gaso-
line, liquor, truck, bank and corpora
ton taxes.
Ohio seeks enactment Of a s75.000,-
900 permanent taxation program u
compensate for s45, 900 900 loss in gen.
eral property tax, while retention OF
North Carolina's emergency per cent
sales tax is conceded even by lts
opponents.
Sentiment generally in the Middle
West and West seems to be turning
to the sales tax and the income tax
with emphasis on the higher brackets.
Illinois and Arizona, both with a
sales tax, are seriously considering
some form Of income tax: Missouri
sales tax, bringing in S4,500,0OO an
nually, will likely be doubled, and
Minnesota plans a general boost Tor
both inheritance and income taxes.
Kansas Turns TO Sales Tax.
Kansas, on the other hand. with
an income tax law, is turning to
In North Dakota. Nebraska, 1dahc
and Wyoming both the sales tax and
income tax are under consideration
During the present administration
in Tennessee a cut in annual ex-
penses of more than s6,000,000 was
made. Possibility of sales tax legis-
lation there overshadows everything
else in interest. The administration
has not announced any views on the
subject, but has indicated that addi-
tional economies will be effected.
In New Jersey passage of strict
municipal budget limitation laws and
strict economy in local government
is expected to solve the budgetary
problem with possible broadening
of the tax. base held in reserve.
Committees working in Oklahoma
Utah and Iowa have planned con-
solidation of duplicating State de-
partments and overlapping county
administrations to obviate the neec
for increased taxation.
In Colorado and New Mexico
county consolidation for efficiency
and economy is certain to be consid.
cred, while in Texas and Connecticut
duplicating State departments are due
to be scrapped in the fight on gov
| ernmental waste. Tax increases art
expected, however, in these two States
The war against crime, given added
impetus by President RooSevelt's ap'
peal, will loom large on the cal
endars of State Legislatures.
Ohio is planning the establishment
of State criminal bureau, patterned
after the Federal Department of Jus
tice, and cooperating with it. Norti