Evening star., 1947-09-28
Joint Tax Conference
Urges Federal State
R:eadjustment Now
By the Asseeioted Press

J~SssssSlshH wv"
BY the Asseeioied Press
. CHICAGO, Sept. 27-A joint con-
ference of 80 members of Congress
and Governors proposed today that
there be an immediate readjust-
ment of the Federal-State tax re-
1ationship'' and urged adoption OF
a five-point taxing program by
which States and local governments
could assume those functions
which they can administer best"
Our States must cease relying on
the Federal Government to dc
things for them and their citizens
which they can do for themselves as
well as, or better than, the Federal
Government" the governors and
legislators said in statement fol-
lowing a closed two-day meeting.
The conference proposed:
l. That the Federal Government
teduce Federal excise taxes ''aS soon
ss practicable.
g. That the Federal Government
amend its inheritance and estate
taxes ito provide more equitable di-
Vision of this revenue between the
Federal Government and the
States"
Want Inequities Corrected.
g. Thai the Federal Government
telinquish to the States the Fed
eral tax on employers levied to
cover the administrative expenses
Of State employment security pro-
grams" so that States could assume
the unemployment compensation
and employment service program.
4. That Congress take the earli-
est possible action to correct by
Federal law the inequities existing
between the community property
and the non-community property
states"
5. That the states should avoid
encroachment upon tax deals which
are peculiarly adaptable to Fed
eral uses.
The unprecedented high total
tax bill now being paid by the
American taxpayer to support all
levels of government requires ar
immediate readjustment of the
Federal-State tax relationship fol
the purpose of preserving a work
ing Federal system" the conference
statement read
Calling their five-point program
"long-term objective" the Gov
ernors and members of Congress
said "the accomplishment of this
objective is largely dependent upon
economy in government and the
establishment of fiscal self-suffici-
ency among the various levels OF
government
Reduced governmental expendi-
ture is "a prerequisite of tax re-
duction and payment of the ma
tional debt" they added The pro-
posed program. They said, would
reduce duplication" and achieve
economy and stability in our CO.
ordinated system of Federal, state
and local governments"
Participating in the conference
were Governors Hildreth, Maine
Caldwell, Florida; Carlson, Kansas;
Dale, New Hampshire; Donnelly,
Missouri; Driscoll, New Jersey;
Gates, Indiana; Green, Illinois;
Hunt, Wyoming; Knous, Colorado;
Lane, Maryland; Snel,4 Oregon
Thurmon% South Caroftna; WALL
gren, Washington, and Meadows,
West Virginia. Senators Bricker, Re-
publican, of Ohio; Hawkes., Repub-
lican, of New Jersey; Martin, Re-
publican, of Pennsylvania; Thye
Republican, of Minnesota. r. and
O'Conor, Democrat, of Maryland
And Representative Byrnes, Repub-
lican, of Wisconsin; Camp, Demo-
crat. of Georgia; Curtis, Republican
of Nebraska; Dingell, Democrat, of
Michigan; Ellis, Republican, West
Virginia; Kean, Republican, of New
York; Martin, Republican. of Iowa,
and Mason, Republican, of Illinois.
Representative Dingell, member
of the House Ways and Means Com
mittee, said first priority in reduc-
tion of Federal taxes should be given
to elimination of wartime excise
taxes and excise tax rates.
He also advocated repeal of the
Federal sales tax on automobiles,
accessories. tubes, tires and gasoline
to take. he said, 'the Federal Gov
ernment out of competition with the
States in the taxation of automotive
transportation"
BY giving first priority in Federal
tax revision to reduction and repeal
of excise taxes Mr. Dingell de-
clared, we would be granting equi-
table tax relief to the greatest num-
Der of taxpayers with small and
medium earnings, and at the same
time would remove the principal
area of overlapping between State
and Federal taxing authorities"