The Waterbury Democrat., 1942-01-08

a pyramided manufacturers taX and finally the fact so many states are already relying on retail sales taxes as a principal source of in- come. The practical experience of the states with a retail sales tax shows it works, which is one of the main reasons for revival of the idea that the federal government should use the sales tax principle to a greater degree.
 California's record is pointed to particularly. For the fiscal year ending June 30, 194l, California col lected $110 million in sales taxes. For the fiscal year ending June 30, 1942, the total may reach $l30 mil lion. If it does, the state indebted ies can be entirely wiped out and by June 30, 1943, the state direc- tor of finance estimates California might have a $50 million surplus.
 Figures like that add a lot of fuel to the flames of the federal sales tax torch carriers.
 MORE COSTS TO STATES?
 The financial standings of other state and local governments, while not as rosy as California's, have shown such improvement over the last few years that another pro- posal being heard now is for trans fer back to the state and local governments of expenses which the federal government had assumed. This would include such non-de- fenSe expenditures as public vel fare, grants for education, public health, old age and unemployment assistance and federal aid for pub lie roads.
 Two Brookings Institution re- search men, Henry P. Seidemann and Lewis H. Kimmel, have com- pleted & study of this idea and they present the figure at $732 mil lion which the federal government might have saved in the present fiscal year by permitting the state and local governments to assume these expenses during the war, and this figure does not include WPA appropriations.
 Herbert Hoover at the beginning of the depression was strong ad- vocate of letting local government bear the relief burden. The flnan- cial condition of the state and municip al governments was so shaky, however, that this had to be abandoned and through the New Deal period the tendency has been all in the other direction. Federal government has assumed more and more of the local burden, reduc- ing state and local governments to state nd local governments to positions of less and less impor- tance. In 1889 federal aid totaled $947 million - the principal items being $51 million for education, $249 million for charitable and hu- manitarian grants, $559 million for public works, $62 million for unem- ployment compensation and en- ployment service.
 UNSTRETCHED TRUTH
 OPM officials are still afraid the general public hasn't appreciated the seriousness or the genuineness of the rubber shortage, in spite of the drastic nature of the tire ra- tioning order T he reaction has been too much to the tune of, "Oh! It can't possibly be that bad" Or, We may be little short now, but things will get better before I need new tires next fall"
 The rubber experts insist that this rubber rationing business is the Mccoy. There is no Ickes gasoline shortage smell here, at all. It's dead serious reality and they don't mean maybe.
 Actual figures on the reserves of raw rubber now in the country, the tire stocks on hand and the Army's requirements for rubber are now considered military secrets and unpublishable. But it is permissible to say that the visible rubber sup ply is only one-third sufficient to inset all demands. Military require- ments being what they are, the poor civilians can figure for certain just where they will be left riding the rims or else riding on their thumbs