Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-04-15

from eight sources, all of which are
also taxed by the Federal Government,
was made public last November.
The survey showed that approx
mately two-thirds of all State tax
revenues during the depression were
derived from sources taxed by the
Federal Government. These same
sources provided nearly three-fourths
Of Federal tax revenues
Income taxes lead the list of dupli-
Gated taxes in 1885, according to the
Treasury survey. In the same %
States, where the Federal Govern
ment collected total of $527 $4,000
individual income taxes in 1885, the
States themselves took an individual
income tax of $99,95l 900, making a
total levy against the same incomes Of
these % States of s627, O64,O0O.
Corporations also paid twice on
their incomes in the same % States,
turning over to the Federal Govern
ment $572, $4,000, and to the States,
$64 ,740, O0O
States Attempt Solution.
The first concerted movement by a
large number of State governments to
deal with multiple taxation took place
In February, 1888, when 80 States
formed the Interstate Commission on
Conflicting Taxation. The report of
the research staff of the commission,
made public in 1885, after a two-year
study, constitutes the most exhaustive
survey Of conflicting taxation ever
conducted. In 1885, the commission
was reorganized into a Tax Revision
Council, representing Federal, State
and local governments, headed by Sec
rotary Morgenthau. Addressing the
first meeting Of the council, Morgen-
thau expressed the view that Justice
to the taxpayer" should be the basic
objective
THE first step" Morgenthau said
lis to make careful survey and anal
ysis Of the total tax structure of the
country to determine just how the
burden of our governmental expense
Is now distributed. Next, we should
note what practicable changes in the
combined tax structure Of the country
would produce a sound and more
equitable distribution of the total
burden. In the third place, we should
concentrate upon few important and
workable means of eliminating con-
flicts and overlapping in a manner
consistent with our analysis of what
constitutes a fundamentally desirable
tax structure. Finally, having arrived
at few important possibilities which
we know to be fundamentally sound,
we can then attempt to put them into
effect"
Findings Not Yet Disclosed.
Although the council at it's meet
ing appointed five committees to study
special phases of the problem OF con-
flicting taxation, no further action
has been made public
The District OF Columbia should not
be subjected to another income tax,
according to the principles laid down
by the Interstate Commission on Con-
flicting Taxation in It's report on Con
flicting Taxation"
separation Of tax sources has led in
the field of State and local fiscal rela-
lions, the report declares the same
dilemma would also arise in the field
of Federal-State relations.
Briefly, it is this" declared the re-
port. THE only logical division of
tax bases as between central and local
governments is one which is made on
the basis of administrative suitability.
In other words, each level of govern
ment must be assigned those types of
taxes which it is best fitted to ad-
minister. A division of tax bases made
according to this criterion, however,
will not necessarily satisfy the re-
spective financial needs of the govern
ment levels In question"
Division of tax sources on the basis
Of administrative suitability would I'M
doubtedly call for tn. complete ex-