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![handle is hein.tera/taxfeaturs0003 and id is 1 raw text is: TAX FOUNDATION'S
MONTHLY TAX FEATURES
January 1959
Vorume 3, Number I
Capyrfie 1959PS by Tax Foiindniphan, hIc., 370 Rttekelellee Plaza, Newv York 20, N. V. Maerllmay hearied ivida proper cedil.
Gov'ts Now
Taking Taxes
Out of Air
I nets (.11 he-uid nire-liter
ill v pirktl Iitt oh tite air, ay s
rit: l'ilililai tiil, I lie. ISs tlai'-
ill iI c il l d in t tilet r
Ite re1111111iii 1 ( 11e Ctil- Cllu
liol jolunue5Il$ i Illotrull
galiflillell tit, Thy iiil l
!l;il ll 1Ll 'ollecl Met Ol
taerh c iii I t41 i is ll Iii 1.
hi lii :!68il II, the loiteral gol,
(.TIIIIIIII 5 i111dl ld 31.,1ll.it
hloll hitil 1 t i es'llli
2ellleillr Ito il loilli. htalll
t as ol I Cll i e etl l l frot
:1lc i:l 7c 1,(!l gl;Illllimil oil aili-
lvio li irile bt i lioll C lit
oI1 t liCI. t
I ii 5lilllliolly it c ic 'let
hlitiilmI tkllt 11110 Ilill iii ii t
;I io iorlv 17Tbilh'IJl
lli ltcl al Inliekl, it I'i
Silie 1 iil toll tle Federi
liv toi &ill tin b llik] I o
jc r 111 Il4 l e rh iig ill 501
1i 5710 inilllion ii urc. Thle A..
lllhl{tralil, lcronlig to I-c.
lifi lil t1(,I it tl itl r
I lie ,. i'A t i : o11.
I111 lonaxe oti r.i,' latl w fueiltli
ilig ;I lici 3 1/2-n-gaIloll Itax, all
CIL i l, Isr
i li Ceal 1958, it is esliilc1e
Ihe I aile ,i llpail i2.911 Itti.
Slll It1l5 l Itlxe OIli i[tlar riL
W'iS Jllie[l SNi g~eler:llv
k.loltll, I.Vow el, is door . [oil.
.xILS$ k f ,hilllelld to tile pa)cl'i,
cithlier Il the Federal IOT State
gill tOi l tts 51tlii' ll r Fel is
it hoc tiitr than higllway
liill lill e' .
A.ltilisigh 2i1 ii[ ire Ferltuil
j i) lil icftixttbllc. tle Ic
Ve qtlli levy added Jie iONi
i Otl Isiliitvls, it is refund.
Allt if itusedl ir olfflliglliway pur.
itIeS, ilrchilhi.g Ii~lillatIC1.
(llir It,'o staten, Aslalilillc
ii'liw'ro tIle rrti stll gasuulitte
it% is 7c tid Vurltot (1tlc,
:ix a'is-i;it lus ii tiiie l t lil
liIllll I l5 lli tat rate.
'I hhl Iy-ile stles atid I ils.
it iet Ill C0iilluil grallt hill tax
Icl iel oll glalite Iltect toe nvil
11li til lttlir~ls- t la' iciest te-tlin
<gil,1 i ilsill i itf ilol[h foci
11itli l slll ar xcli er.l~
SPi'ell ist1ten Igr ltll r lit ar-
lli estiptotl or paltil re-
Iliilui ill tle ,5r<)Ilo lli il i
11m tii oi artloeit, i ittli
ftlr d' III lie, Flih l c l a ilh' l' l
;:istlill I.. is 1il/, per gclollo ,
i ituitrx fitct ulily pt i Ic of
tIlV In'-i tilr deciealer atlliics
for 21 xefund il5cor tsite fI1C
tas. Sales of iitel lIsigliti for
tlhiltl[i .ri 51ilJjEtt to it tiler
iclilld -l tlll'/g of [hri iiI it
ciletl.
Eight sius t alx avisi ii il-
I[IIP it it low'.er wae iin the
t il 'iasuuliur a 'l 1-111-
ItLill clinics fixlir tiollllC tril
lilaIl i1 111w ii cile 91111 t' ',ite i ns[ie
sitir h rII de I IVel Iiiltler (i 1 l -
%1l1 it I it I ol/ c er illit.
I oir er, il 1thl tie l uel Cire
I i T it Io iS l iti rer'tnis
Sr'1 . t i xeiC Ftor.
$1 Billion Gets You $20
I is exstiiated isy I ax FtIIII]a ion Inc., tlht e e cry $1 Ii lion
ee1C~itiills ill Feilersl spenfdirg neiretin $1121 hsx cut for thr
average Ainern araIily.
(TrwJI cr.al, a,xifllil i.'li,~ clare ulri *l4 sell)
Say Annual Job Hike Cost
42-'58 Ran to $J'A Biiii-ii
al'ls -T ax Fouatmlatiuii,
hit., sssilv h Iplcii if a stock-
holider'S tiilCIiig wxas told axic
of tle c oi.xIay's ileps istrit
lhod heci rcorgaillietlot y
lldilnl le I it iont. bill by
the tlowritg lsevrlopiliwnls
Ilie rirg.inizltion previdd
Far, I I timtel o tlillsectiolts:
I IC li ,tltle.tl liidlsestil $)
wa;s I to ed;
Ilts iti lm iitte arl nret+ (ii)
Il TIVe Ciiol.lO'es were doil9
ti 'ork (orimarly done b y tie;
Cost OF tile ltin- r y til
rltivi i 'tWii oltilost 5iibl d.
All this was siaid lu he iii ini-
eoYt tlh at StCllti'i llSr.
ill hoe dillermices in jah lruii.
i l ill i+l tillin ame Federsl
Tleii.l l , ti!c.. i.l.. ig.r I i ,o re
(cic I le atsuollitilii hi ii-
5clitpalihg Federal jPbllcoldeis'
MINIMS ilel+ lIii iktO5.
''htcugiiahiiois, Itecitielil re.
i hnni ill joll isidiards . . Il
ilcrease Iin siipergrders :laid
oilier top-lenel jobs (aAnul It
five-fol inciiCrease lt 1 94hI2-
1r'),°said Chaini Il [vis$
,ll ha,. hll ;nllitillry ci
I I:.' 1(11t1 praietices reslsLiei ill
ill eiutiile ll'roll iltrwlie o1
11011t 411/4 hillions A1 )TyH ovel
the 16year period it wis sald
'I it etiiorL cites Iii a i.
log rcitalliallnl be Olte' red-
ciu l l l t nrtI tlt Ml I iNIhiil y , ,
'd itori~it'l hislell ll ' t gimile
c.is (I 1!1511 salaryllgo1111: $8!1190l'
$11I,110). lUmlee huh were riglii
dlivisfiillc.'leil by si.n enlIloy-
eta iii grade 0S-II (57,1110-
5$1t,,'(), ore in 05-9 (557,985+
36.99,85), 21n11 UriC it CS,7 (SI,.
9811'.3.1)
'lilillll h ut iCII l llili' l
itt' itlIt fo lisi 'lellilll, lientI-
t l lilI ll lll ($.ll il l l,
lI e gai lilee Cg.l I iisllsits
, iilin~cld o Idh'~nlp, II
wirezict. sip, ptia ill alhilhlirri.
tire rifriee, Tihere were then 7
5,1 I's ilt1e.ll of 6. 1itlltwoict
GS-12' ($1111 $9,550), aloeg
with riva( GS ls anda GS-7. Tle
lIt lerisr a nilaries cisere$5h,ll0l
.k yenr tefore teocganizllioll.
Alter it, they totaled $10.,000
I)it l 01 '.
hl 11/i iillioll a yea: in
crise is eIuivllCnt to all tie
ilil lllal I11100 IIXL )ltid by
sl1Dllt 4 lillitil (tllield viilli
LWO Chilhll) ly itil Alepvri a
cililOyOCt e0l llig$lil1 is ai,
I1COldilog o t Ie Frliltlliiofl,
JIG .9IIATI. Sleniltng by
the Federal government itl fisc;.
19 8 rep resen te i 1 e e in o
'hi 9I~s<rlilnClll 1il,5St j- (Fedl
erall, state, local). Stair spentul-
1i vas 17 .o tie total,
I-IOUSI 5j101 . [iit lir cl
ol tire over I iaillior., new, Vn
lart lailal , it atiallle in
1957 wIlts ililtrwrtIetli lay tle
leilerl I5(l-h:1lt either
thlmoilgil ct lel ui ngc1111
Alillinis. iittill tile th1 Veta sa1t'
Adiinisirintliau 'lie'l FHA tn-1
d,'uole, 16[1,4011 of tire total;
VA 128,300.
Thumbed Out:
27% of 1958
Bond Issues
A silIore cluillls ivtgiIilly ill
cOi Il IruIIeI S t'ilill cWillq It'.
Ile til in lie Asilil l vitiel
rejtcli of 27 perrilI it chi
32.3'+ lull Y1 il of it! alitl
hci!l bond 151is in 1it N n.
$nlier's lcetinll, nltet Tax
Fiolilldatioll, llt.
In 15156, jist over 1210 mil-
liver, or 1 ilieetli of tie 42.7
billion ultered was 5tjericil.
Illieteli iil 1958. $131) trillion
Wisrejerle tll it litic iit nLcli
silallee tol.
'['liet42.3 btillion lllltlCrcd tie
voters last year was Ill1 second
liipllrt liir icoyrrtiL't 11111.
I'lie 27 jItCn rojilctiin -
1011ih e evcelpilin al t 61 i1Cr'
it Iletllttlli i $ 1ii illi u
Worlih Oflerel ill 195,- l tile
largest rCjecllon, jlrcenlge-
wi5C, &11CC 1c 150, says rh Foul-.
d;loll.~l
lforliitlig lrllolsai ofiet nd
byi statst, gei ei ally. fared better
thlan those ill lo'il govl iiliclit.
01 $1 ..1 bill~ka iii irolrl d 1 lae
11i0l [1 ilt, I19 ll<t~iit, or $$25
litililil - al in llinois - Were
rejected. I.o nal intl I 3U511
lllinglll [if Ian ti 111lld 4$16f
nmillli anlzd $307 iilliern Wotilh,
or tibtnethi~ird, wvere ie'
jetted.
lfiYftIiltb'ililtg , l ill'i
te lie I II dlilil tr tlslliii of
liorxl ilies 511n1itird, ]9411-58:
Year SihIiltulid ippoliri Rejltie
- Million
1958 32.322 11,50 $630
1957 940 71 IG4
1956 218 2,472 210
1955 1525 556 967
154 1,58! 13917 192
I153 921 9so 7S
1 1 1.61. 11,242 270
151 114Z 1,89T 45
i50 sh: 654 3D4
1849 1 6H 1,342 2&5
18 1,:23 7 585
'Resulas an $12 millin unkaile
Hook of Arrtp. Sfeel
Named TF Chairman
Chilliet R, IHook, Chirman,
ARtittO, Ste cliiiioi Was
clectd Chlairmln of hli 'lax
]Votilitlation llniot of Tristees
;it its i 11Ii111I ineting iri le-
ccsMller.
loud Wnrp!lcr, Cltuirmanl,
Vice Clieola ii iof Ilic laird,
Roivell lagill f Xleitlori,
Coisn., ianriir r lidieriecretu Iy
iif the U.S. 1i roalla remains
is FiiandiiliOlli!Peesirleitt.
Codll Ca'liitd, Vie l'rei
dellil, oliu Ilhill Cheiiocal
Corlliaiitionii 10t5 ele oxI Iole-
ilation Vire lrefdeti. Joh iW,
ilalics of Olin l atlrlesli COil'
1Owe1s a Gilaonia of tie
lloard's Exectutive c0o1illliteee.
(1)11cr olfixis t tClasled werc:
5. 51021 Colt, Bllkers iriEst
(kalllillly, 'l'oclsilnlr I lcrlsert
. ,I l1er, xe tise Director
i1111 Alfred Pfarlr ecretary.
Title leadca' DigeJl for
Jaiiui try feat lli ll article
DOa YOU 911 W a~ 1clli-et
1)11 law?, a eodllsdelitioll l
ill original .S c/rday r ile.
2la~illll, T,'l' ou oIllation
Prc~itlenct
'Grim' Fiscal
Outlook Seen
For New Year
Ninclcit Fi-lls'litic, iInli l
il by .illig ol il1 till lfklly
be folhoive b)I eicitlr li]i
of tle failty la1ikr1i Iai esti-
InllI e. rt O(I g~ot crllilt'vl
31taildl l=il t ll, l llg cljiill, 1'.
IIw highs. ''ax Foutin:i11111,
Fly Jtlle 118, 1 t9T5 oil tf [IU
lisctll clue fil Fedrral,.cttle i1l
hosel gomx ixtllii I ii11 ;11 .I llill-
Juig 1ia lad, $1,1 - tiliot t!
Iilt l Cllgiallt5 ill .eimiclt.
T is scii i ih 1 ill riirclui
-1 nru ll liigh of $1t770 per Famlily'
oill the lii]. (if preentll wlililiics.
Aml turenll' at. ]11, 11lt Irdc.4
lir ce nlily was oly .1,2.11,
'11i IilllitiOi Lll sil Il-
anidl Ioal IInc cill. lug lit ill
of tile is.l ))e1r, lilt the 31111
billUnus Vial k, orl Ilte I iute u
$2.1050 i lul I I11 it
wlias ,lljliolllntlll 11I,2001 lo-,
ltilily.
I le fiscal iouLlul isI
said Rotivel fliagill, lot tit
'l'eeli try UtsilleFto-t li at :ixii
lirexiifeiit iii lilt F'oiil,i mlh
T'I sit lie U39114 tEIiiiuii I uIt II I
Itliies'let nlieal I 'l, ;liiut tlr
ic ll o h iil set lit eFilil
i+sill' lie IF'ohlei itsh 1ldio
elyi 1,0 11i Ic ll 1i1<..1 ICi
tlhan $111 1 ba fioe [O fiscal 19611
by i Luiagioss lai tl'ki (i0 l e
It I i u all the goierilaiJlt
sorr fill il i'iiltlhitihe
with till Ihbe uiieltuse i li, l Ithe
Arry. Navy -11i1( Air Ioir cotln
devise,
it is %illilic-llltl tiit ihe.
pos i Wor yl ')ea, FeEI- 4 r ', '11 .
I Ilis incl tiase Ilb) Si, hill ollll,
lrge l} liilI aigh tt il'ilii
Ilor uth 'irti l i tv Vi ci aI
5tlilici ls, t ui 'liral aitl alithe
series ailld hic-ililim.t Iliil
riitih lltu isli-te fliUlgsicl itlui il
Ill l l'll lIstin treI lt:!1,,11!
dlit meat I 5 $110 billion lIvi
ilSi Ic fl vi1ge atil ii lie iii-
lIn lilstios. catie -Iil ltgis
ltillcs si'e lt d I iil llilliie .
cilleid liqu:il 1irolello iiri ;Is l uII
eat it rl i t. iii f t i i ti ll t v ix s
a u ild rccori slate debtl.
If ie lit ii roritihtie. the iulll
ocss-ilile oimlliti l m111L lil.-lit
fiscal lrelli is higher Itax io
evLrhoi less i Ililll 1 Itiii h
of iOs Ca alilt Irir iir ilrsuliialI
liec.Csitit's, tiii a Icai-:iillsdhr
valuiale tollar. Iliet tuIx tio I
mot 5 oll l iilt weat Ildotill ll
evelty i ll he aiks fl iuipll l'-
erilmeict Siish Iill iii'1iiii Ili
t hWtll(fiotmi% l 91t1e 1e i1tl
Ow iiiiliedtl I .....ll dir' lethi liii
go'erlliilt ill the falll il
graliit h an atil, ie is rolili 4 Ills
a liratier lIi hliltill oili in
,tell an oil i fis helltt cii i..eii.
FCirral esviriltlilei iitl
ir hroughr tlotli to $711 billicni
i t llt slilp bill tI1 i hll-
psibls CI tt lpIiallIo t. Ilui isn
to accolmllish .1 $75 billon
htildget foe tlhr IIn' ri¢c is jr
hegioniiig oii itly II 11, wse
sltu Ihiree io revere a steslg
fiscal incil:; ,iid hi ilmiini
iTc sict ll Ite to lit l tile
el15 C 'tiigmess ltiar uw'e ixldit
ritlit iiaE, a soitull illlt ail
IIIlis~i itai te lllhii9 iii
a'll i reet i~lt+'
Cs S
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