The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-09-03
Toduy's
Business
Mirror
By SAM DAWSON

BY SAM DAWSON
NEW YORK R-Back from the
last of the summer trips full of
vim and eagerness to make a lot
of money?
Federal state and local tax col
lectors hope so.
They plan to take even more
from you this year in taxes - di-
rect and hidden - than ever. They
hope you make lots of money
some for you and some for them.
The Census Bureau estimates
1852 federal, state and local taxes
at 80 billion dollars.
But the National Industrial Con-
ference Board thinks that figure is
too low. 1t estimates today that in
the fiscal year that ended June 80
the federal, state and local tax
take came to a record Sc W bill
lion dollars.
This would be 16 billion more
than in the previous year and Is
per cent higher than in the fiscal
year that closed as the Korean
War was starting.
The Guaranty Trust Co. of New
York, looking only at the federal
governments tax bite, says that
in the last seven fiscal years (from
the end of World War ii until the
presently the total tax burden was
3O8 billion dollars.
This was so billion dollars more
than in the entire, previous history
of the country. However, it fell
short by IL billion of meeting fed
eral expenditures.
Where does the money go? Well,
the greater part of the federal
take goes for defense and for pay
ing for past wars.
Federal, state and local govern
ment expenditures are now run
ming at total annual rate of IA "a
billion dollars, the Department of
Commerce estimates.
The u. S. Internal Revenue Blu
reau thinks its total tax collections
this year from all sources, includ-
ing Social Security contributions,
should run 10 billion dollars more
than last fiscal year when it took
in IS billion.
The National Industrial Confer
ence Board tries to find just how
this tax load is distributed among
the citizenry-and runs into
trouble.
Averaging taxes, like averag-
ing apples and oranges" if con-
fesses, necessarily involves Gid
ing over many differences"
Taxpayers with the same gross
income may wind up with quite
different tax bills.
''How much anyone pays depends
not only upon his total income"
the board says, ''but also upon the
components making up his income,
where he lives, what he buys, the
demands that family and other
responsibilities make upon in
come, and many other variables.
''And as a measure Of the real
load, taxes directly paid are Of
less economic and personal inn
portance than taxes actually
borne"
1t is the search for these hidden
taxes, and determining who finally
pays them that the board thinks
is most important.
Hidden taxes are such things as
the property tax your landlord
pays directly but that YOU actually
pay as part of your rent (unless
he's going in the red). Or the
taxes that a manufacturer pays
directly but that you actually pay
as part of the price his product
costs you (unless he's losing
money!.
These taxes are hidden, because
people don't see them and thus
many don't realize they are paying
them.-
But I-trying to average apples
and oranges, after all--the board
notes that, looking at just
the federal income tax:
A married man making $4,000 a
year and supporting a wife and
two children-and, assuming av-
erage deductions" paid an income
tax of $211 in 1882. BY 1949 his
tax was at $1.0l4.
This year he'll hand over 10 the
federal tax collector 1854. State
and local collectors viii be along,
too.
The cost Ct insecticides used By
the American farmer is only one
third Of / per cent of his farm