Evening star., 1947-08-17

Total excluding payroll taxes) $38971 $4,979
In addition general sales taxes have been
enacted in ~ States which duplicate some of
the Federal excise taxes. Some States like New
York also permit municipalities to impose
sales or gasoline taxes so that in some localities
certain transactions are subject to triple bur-
den
The conference of State Governors at the
July meeting in Salt Lake City also exhibited
concern with the trend toward multiple taxa
ton and designated a committee of seven gov
ernors to meet with the Senate Finance
Committee and the House Ways and Means
Committee with a view to co-ordinating policy
and administration in Federal and State tax
structures prior to the next session of Congress.
It is rather doubtful that this informal group
will be able to agree upon any specific program
but their work should provide the Congress
ional committees with the benefit Of informa-
ton and suggestions from the governors.
One immediate goal will be coordination
Of the collection methods 1t should be possible
for the governors and the committees to agree
upon the establishment of an advisory body
which would work toward such objectives as
making the schedules of gross and net income
and the various deductions uniform. In that
way taxpayers could use the same figures and
very similar forms for Federal and State re-
turns It would also eliminate the expense in
volved In having separate sets of auditors
checking the computations.
One obstacle to any thoroughgoing reform
Is the indifference on the part of many State
governments to the revenue needs Of Washing
ton. This stems in part from the fact that many
States are so absorbed with local problems that
they are unwilling to reinquish any of the
traditional sources of revenue. A number OF
State treasures must now take larger share
of the responsibility for public education. AT
one time public schools were financed almost
entirely by the cities. But since real estate
taxes in many metropolitan centers are now
running into the law Of diminishing returns
more and more cities have been unable to carry
on this burden.
Certain legislatures, however, have taken
steps to hobble the capacity of Congress to sup
port the National Government without corre-
spending gain for themselves. An example
has been the successful passage in some 20
State legislatures of an indefensibe resolution
which would amend the Constitution by limiting
the highest income tax rate to Is per cent This
would not only mean the destruction of the
surtax structure of the Federal laws, but is
repugnant TO the abilityto-pay principle upon
which modern revenue legislation Is based.
Another reckless development at the State
level has been the furry of community prop
erty" enactments Southwestern States with a
background of Spanish law have traditionally
treated all income accruing to a husband or
wife as jointly owned Unfortunately, these
States have always been powerful enough In
the House Ways and Means Committee to
prevent the enactment of legislation which
would treat the family as the taxing unit and
thus eliminate the discrimination resulting from
these State laws.
During the past two years a number of States
in the North and Midwest have retaliated by
passing community property bills. The popu-
larity Of these measures is serious threat to
the Federal Treasury under the present income
tax structure Unless some reciprocal arrange
ments can be made with the States, it will
ultimately mean an upward revision of income
tax schedules