Show BABSON'S t y AUTHENTIC 1 STATEMENT Special to THE EXPRESS RUt RUtY Y w Baba Babies D MOUNTING STATE AND LOCAL TAXES Dabson Babson Park Mass March 21 In a recent column we dis- dis discussed dis cussed living costs pO sizing the increase in er prices that has occurred To To- Today day we give attention t to taxes especially to those levied by state and local governments TREND IS UP UPRight UPRight Right atthe moment the fed fed- federal eral tax burden on Individuals and corporation is less than it was a few ye years rs ago in spite of the January increase in soc lal ial security taxes But our state and local levies are rising at atthe atthe the rate of about 9 percent per year 36 states and the District of ColumbIa have income taxes 39 states and the District of Columbia tax retail sales Vir ginia is about to Collect a 2 per per- percent cent sales tax and a 3 percent limited sales tax becomes effective tive to tn Massachusetts April 1 Mayor Lindsay of New York has attracted national attention by sponsoring a proposal for a graduated income tax on those living or working in that city that would take an amount equal to 50 percent of what they are paying in taxes to the state of New York It is not widely known that 10 American cities already have municipal income taxes among them Cincinnati Philadelphia Pittsburgh and St St Louis I WHY SO 50 MUCH NEED For th the most part the need of the states and cities for addi addi- additional I i Honal revenue is pressing Since World War II the federal gOY gov- government has been siphoning off offa offa a much larger share of dual and corporate earnings than in earlier years This has forced the thc states to adopt sales taxes often in addition to state Income taxes It has bas also forced the cities and towns to depend on real estate esta taxes for lor the bulk of their revenue Why do state and local gov gov- governments still need further lar lar- large ge amounts Partly because federal federa fiscal policies have led to higher government costs gen gen- generally Partly because there are areso areso so many more Americans to provide government services for forthan forthan than there were 30 years ago when our population was only million compared with to to- to today's days day's million an increase of more than 50 percent And partly because we are demanding demand demand- demanding ing a broader range of services than ever before CRISIS IN FISCAL RESPONSIBILITY Obviously the states and cities will not be able to pro pro- provide vide all of the government sere ser services vices requested There resources Ces just are not large enough to permit them to follow the paternalistic pattern set by the federal government But goad goad- goaded ed by special interests the th states and cities do tend to bite off more than they can chew There is fortunately very lit lit lit- littie tie tle deliberate fiscal mismanage mismanage- mismanagement ment at state government lev lev- lev levels els But there is a good deal of actual mismanagement because the states do not always take the trouble or go to the expense of hiring the qualified best per per- personnel to handle services and projects involving the expendi expendi- expenditure ture of large sums of money And there is a very great deal of fiscal irresponsibility in the matter of directing state gover- gover government government policies into channels that will provide real economic growth for all the people I I HIGHER STATE TAXES COMING Costs for police and fire pro pro- protection protection for education and for health and welfare services are mounting Hence state and local government costs will certainly be upped further urther in the years I ahead But many state and lo- lo local local cal government projects are either planned Ill or sary A closer watch by citi citi- citizens I zens on their state houses and city halls balls would curb such I boosts In local spending Also it is very much to the advantage of citizens especially ally businessmen to k keep ep In In- In Informed formed as to what is going on in local government Big busl busi- ness bas Its lobbyists who often orten succeed in forestalling heavy imports on its operations Small business has its trade which also perform good service in this regard But the average citizen has no such watchdog to look out for his interests and to keep him in in- in informed formed of what's coming up next by the way of new spend spend- spending ing and new taxes lie He must knuckle under and pay un un- unless less he gets up gumption enough to make his views known and his influence felt I |