Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-01-06

WSA4 ASSAaS WIG 4ooaS'
low capita wealth, such as in the South
and West.
This income tax yield variation is a
problem the legislators must attack.
Another Of its serious phases is the
fact that such taxes are paid mainly
by the residents Of cities, and their
imposition may result in an urban
rural tax contest" Those States
having sparse populations and smaller
average incomes find, too, that the
cost Of administering the tax Is high.
The experience Of various States Is
shown by statistics. In New York,
which has a per capita wealth of about
$3,400 and moderate income tax rates,
the per capita yield from the income
tax Is $3.50; whereas in Mississippi,
which has per capita wealth of about
81 200, and one of the highest tax-rate
structures in the country, the per
capita revenue is only Is cents. Della
ware, with about twice the per capita
wealth of Arkansas and considerably
lower income tax rates, collects more
than 70 times as much revenue per
inhabitant as Arkansas does.
Thus, in seeking the revenues to
meet greater relief budgets, each State
will have to weigh the tax device
which will fit its own peculiarities.
Double Tax Is Factor.
The question of double taxation"
also will arise while the Legislatures
are considering the general problem.
To most persons this means two taxes
on the same thing from different
sources-Federal and State or two
States. However, the Interstate Com
mission on Conflicting Taxation, set
up by the American Legislators As
ISOLATION, points out that there is
more to it than that Thus double
taxation may arise in the same taxing
district in the case of a general
property tax which defines as taxable
property both the stock of corpora
ton and the realty it owns.
A second tax conflict arises from
the indifference of each taxing district
to the existence and levies of others.
A corporation doing business in a
dozen States is likely to find dozen
bases for computing capital gains or
depreciations.
Legislators, moreover, will find
another knot besides revenue to dis
entangle If the Federal admins
tration puts through its proposed old
age assistance legislation. Existing
State laws of this nature that require
IS to IS years residence in the State
and Is years in the locality before
pensions can be granted, are expected
to be liberalized If a national plan
for such dependents is adopted.
State legislation for old-age assist
ance has increased rapidly within the
last two years, DIR. Marietta Steven
son, assistant director of the Ameri-
can Public Welfare Association, shows
in her report. Eleven States, for in
stance, passed old-age pension laws
during 1888 and 1884, as against 10
States within the previous 10 years.
Prospect Of Federal action, she be-
lieves, will stimulate the remaining
20 States to action soon.
Some Laws Permissiye.
All of the State old-age pension
systems are straight pension, financed
entirely by State and local taxes.
Some of the laws are merely permis-
sive, allowing the cities and counties
to grant pensions to the needy aged If
they wish, with the result that only
a few Of their localities have acted.
The recent trend, however, has been
toward compulsory laws.
Only six States had enacted such
legislation in 1928, and in Wisconsin
alone financial assistance was pro-
vided from the State Treasury. Now
Is of the 20 States having these laws
provide for State aid to localities, and
five States pay the pensions entirely
out of State funds.
According to DIR. Stevenson's sur
vey, Is States set the age for begin
ming pensions at 10; II at IS and one,
North Dakota, at So. Maximum pen
sions range from $3.50 a year in
North Dakota to 81 a day in nine
other States.
The national plan assumes Federal
aid sent from Washington to the
State capitals to be administered, and
the Legislatures doubtless will con-
slider methods of procedure in old
age pensioning in their current ses-
sions.