Milford chronicle., 1953-04-24
STATE AND LOCAL TAXES ARE
INCREASING

Quite naturally, most of us think of the
tax problem primarily in connection with
the federal government. Washington. ID.
T., collects most of our tax money todav.
AND washington, u. c., has been the center
from which most of the revelations of waste
incompetence and graft have come. On the
brighter side, the hopes of tens of millions
OF people are pinned on the new federal adj
ministratiOn's pledged efforts to wiring the
water out OF government financing, to- bal
ance the budget, and to eventually reduce
taxes.
But the taxpayers will make a serious
mistake if they focus their attention on the
federal establishment to the exclusion of all
else. State and local governments are big
tax collectors too-and they are asking for
more, not less, money.
U. S. News e World Report recently dealt
with this problem in an admirably written
and dOcumented special report to its read
eEs. 1t began on this note: Don't start cele-
Dratlng the prospect Of a tax cut yet. State
ana local taxes are going up, not down. Lii
cense lees, sales taxes, other levies are on
the increase. For many, they can wipe out
any cut in federal income taxes"
Since 1915, u. S. News says, the income
OF local government has nearly doubled
1t jumped from $13,200,0O0,OOO in 1916 to
$24, 100000 in 1852. That is certainly a
handsome lncrease-but spending Outran it,
going from $11 200, 900, 900 to S26OOO. 600.
600. Last year, in other words, local govern
ment incurred a. deficit of S1,5OO,OOOOOO.
Dehclts nearly as large have been piled UP
IN other postwar years. And local govern
ment is facing demands for tremendous fu-
tufe projects. To take but two examples.
some estimates say that 3O,OOO,OOOOOO
should be spent on the major highways alone.
and $4,000 100000 on schools.
The result, as U. S. News puts it, is that
tax gathererS IN states and cities are
all poised to pounce as soon as the federal
government relaxes its grip
The sources of local government revenue
are many and diverse. Today 20 states have
individual income taxes. So do "a cities
where, before World War II, Philadelphia
alone had this dubious distinction. Several
states have gross-incOme or grOss-Yeceipts
taxes on business. Practically ali cities of
course, impose license-taxes on businesses
and in 1876 of the cities these taxes are based
on gross receipts.
Ihlrty-twO states tax retail sales, usually
excepting food and medicines All the states
nave gasoline tax which is paid by the
Inotorlst. And, finally, there is that old stand
Oy the property tax This is tending to 90
up too-either directly, through increases
IN the rate, or indirectly, through higher as
SeSSmentS
To quote U. S. News again, "There is a
tax, in fact, on almost every move person
makes. Take New York City as an example.
The New Yorker pays property tax, a 3
per cent tax on retail sales, gross-business-
receipts tax, tax on occupied hotel rooms.
an automObile-use tax, a special cigarette
tax. The New York situation is by no
means unique. Nearly all cities use one or .
more such levies.'' w
So, even though the U. S. Treasury takes
tne biggest bite out of our pocketbOOks, the
city hall and the county seat and the state
capital are important too. We here in DeIa-
ware are sorrifully learning this fact.
5000