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

40 SO11oiOCA 1AS q p4OS1 dLh
will deliver the coup de grace
based on an unprecedented F
outcome in the Legislatures ma,
The Federal administrations chief
legislative purpose is social and eco
nomic security. This plan is mex
tricably linked with State programs.
Many States already have such laws
of their own, and in any case the
venture must be cooperative to sue
coed.
OF first importance to the States
is the matter of direct relief and
providing revenues therefor. The
Federal Government proposes to at
tack unemployment by making jobs
instead Of by direct relief. This would
be done by turning back 100000
unemployables-the aged, sick, Grip
pied. widowed and insane-to the
States before February l. A part of
the Roosevelt relief and public works
program, this would reduce such Fed
eral costs 20 per cent, it is estimated
Would Burden States.
This would put tremendous bur-
den on State and local governments,
offset in part by the stimulus that
new jobs would give local business.
Actually, though, the States began to
absorb some of the unemployables in
1884. F. E. r. A. figures show that
State and local funds for relief in the
first 10 months of 1884 increased
nearly 80 per cent over the same
iNI fV, %4
1928, 800, 500. Nevertheless, the sud-
den shifting of the entire unemploy-
able load will give the State legisla-
tors a great deal to think about dur
ing the month.
The new Federal-State cooperative
spirit is matched by a growing tend
ency to unified effort among the
States themselves. Their latest step
was the organization last week of a
Council of States Governments, with
headquarters in New York City. The
chairman is Gov. John G. Winant Of
New Hampshire and there are seven
other Governors on the council. The
new council, said to be the first
group Of its kind in history, will meet
January Is and 10 in Washington
to consider mutual problems of re-
lief, taxation and crime.
Including this new one there are
S41 agencies in the United States
established to improve local State
and national governments. About $50
State organizations are listed in the
directory issued by the Governmental
Research Association of Chicago.
Statewide citizen organizations num-
Der 43, State leagues of municipalities,
SO, and universities carrying on prac-
tical research in current governmental
problems, u.
Forty Eight Research Bureaus.
Municipal research bureaus, the d.
feetors and staff members of which
form the nucleus of the research asso-
citation, number 48. Most of these are
supported by voluntary contributions.
Three Of these organiZations-the
Fort Wayne Taxpayers Research As
ISOLATION, the Taxpayers Research Blu
reau of Utica and the Tulsa Bureau of
Municipal Research-were established
within the last year.
The common aim of all these agen-
cies, though. Is to better administra-
ton Of those governments within
State confines, and their efforts will
have a profound effect on the course
Of legislation.
Finding taxes to bolster State
budgets which will need additional
revenues will be the chief occupation
Of the State Legislatures. The Amer
lean Legislators Association reports
that the States will look to the new
Corners among taxable items, for much
of this revenue. The most modern
taxes are levied on liquor, tobacco,
gasoline, incomes and sales.
The income from liquor taxation, of
course, varies widely from State to
State. Net revenues range from
virtually nothing to between $3.50 and
SO per capita. James w. Martin, tax
consultant Of the Legislators Asso-
citation, estimates that the typical
yield from liquor taxes promises to
average between 81 and SIPS per cap
tia. This estimate includes the aggre-
gate revenue yield from licenses, other
levies such as the gallonage tax and
State liquor store profits.
Cigarette Tax Income.
Fifteen States levy tobacco taxes,
ranging from to cents on a pack
age of cigarettes. Their revenues
range from about 20 cents to 80 per
capita. Martin estimates that on a
3 per cent package tax on cigarettes
and approximately 10 per cent on
other tobacco products, about 70 cents
average per capita may be expected
from this source.
The States find it rather costly to
administer its tobacco taxes The Fed
eral Government, whose tax rate on
tobacco is only twice that of the
States, produces proportionately four
times the revenue of those States hav-
ing the tax, since it spends little more
than / per cent Of its revenue in tax
administration.
Gasoline tax rates range from 2 to
Z cents gallon in the States. They
produce an average revenue of $4.22
per capita. States with. q scent tax
rate derive an average revenue of
$5.22 per capita. Because of the small
number Of wholesale dealers in each
State and because of the cooperation
of the industry, the cost of admins
tering the gasoline tax is extremely
low.
State gross sales taxes fall into four
divisions turnover, retail,
merchants license and graduated.
Seven States use the general turnover
tax, which shows the highest average
yield and derive an average of about
$3.50 per capital. Nine States impose
taxes on retail sales only, producing
revenues ranging from 81 per capita
to nearly SO per capita, with the aver
age well above So.
20 Levy on Incomes.
Merchants license taxes, compare
lively insignificant, produce from IA
cents to 40 cents. Even less signifl-
cant are the graduated gross sales
taxes which have been assailed as
being discriminatory to chain store
merchants.
Twenty-eight States levy an income
tax. Curiously, this tax is not uni