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![handle is hein.tera/taxfeaturs0004 and id is 1 raw text is: TAX FOUNDATION'S
J..,uary 1960
Vol. 4, Number I
gi y MO T3LY TAx FEATUllES
Copy ight 1960 by Tax Fo undation, inc., 30 Rockefeller Plaza, Neut York 20,N. Y.AMaterial may be used waith proper credit.
Gov't Supplied
18 of Each $1
of '58 Income
Is: essse dislitsent eit ts by
FeIlerai. state saitd iscal gsverl.
:ssellis: wages idii slr-et to
their emls oyees, social secrsity,
Iltlil- l40) t I 011. oi11111 I l lioll,
pen11ssions and1sl itlihlic assistaice,
assss1ull::(d, int 119158, oiI avelage,
id 18 tlis isolit if evesy $1 ol all
pei o! mita3 iicOille receil s) by
Aie iI isis, 'ax Fouidiattions,
Inc. ll1t.f.
1i I 19.5, the Il' clii al g sein:-
tnliL dislisinel $10.3 billin or
II sest-sit ii sill Ilstial il-
itie, w'hile -$25.1 billion, or 7
l)MieI|, W,;LS dlillhliNeI fy Statle
anlo a Io g ov'ernmlenlts.
lhe rstio ci total goveill-
iilsit ilss olile dislursem:ents to
:I eersisisl islsuse howevser,
was Lco-aid-oichalf tilies
gealter ihsi tie ases as iii Ite
)ist: tf ist ssinhia where i is
estittateld ,15 ceiis of every $1
os lset'olial intcime was dcrived
Is sill gitvetllillest. ]lecaitse of
the ltisa) cosietirisalist sa Fel-
ciail goscttisieil wokes ai
1).(;.. it is figired siat over l11
cestsi s-i e h1 is I l i(2le01sil iii-
itme Caillle ron: Ile ntsitnal
goisset tiit, 5 cenits frot Isisal
glvelliilelin Celf|rllI.i
F1iret ittiileltL.
Louisiana Highest
The greatest aioii o each
5I il[ st;:e ticld fical govern-
tielis is c.salts d islilirscinc l sis
Si lel'eiitage o all personal in-
cniIevas ISisollld its Louisiasa,
s1iie el uilt Ithi cells caitte
Is I ltsatte ins] Ocll governt.
iselit scon:es, i10 i ts frossi the
F'dtil f goveltillell
'lhe ligures slowitg tile
tell is pe:'1 of lelionilI itlCin
dle ['icsI Is i goverslsment
sstites, ili a breakdown by
Fedeal or state aitnd local gov.
ersisslet Is:
Ait state
GOV' rid. Losal
D.C. 45.4 408 4.6
Vs. 29.9 23.1 6.2
N.M. 27.3 17.6 9.6
Md. 25.6 19.3 6.3
RI. 24.2 17.6 6.7
Ala. 23.9 16.3 7.7
Utah 23.5 15.6 8.0
Wash. 23.4 14,5 8.8
Okla. 23.3 14.5 8.8
Miss. 23.2 14.2 9,0
S.C. 23.1 16.0 7.1
Ask. 23.1 15.0 8.1
Maine 22.1 15.3 6.8
Aiiz. 22.0 13.3 0.7
Col. 21.9 13.5 8.4
Ga. 21.8 14.8 6.9
%, 214 14.7 6.7
, 23.0 13.9 7.2
Nev. 20,6 13.3 7.3
La. 20.5 10.1 10.4
S.0. 20,5 12.7 7.8
N.Il. 20.4 14.0 6.4
Calil. 20.0 11.6 8.4
Tenn. 199 32.6 7.3
Mont. 19.7 11.7 7.9
Wy, 39.6 3 1.2 8.4
Kan. 19.5 12.3 7.2
Idaho 19.3 11.3 s0
N.C. 19.2 11.9 7.3
Mass. 19.1 32.1 1.0
Vi. 190 31.4 7.6
Osn. 18.6 10.4 8.2
W. Va. 18.6 11.0 7.6
Ie-s 18.5 11,9 6.6
Meb. 17.9 11.3 6.6
N.D. 17.6 9.2 8.4
Minn. 16.7 8.8 81
Mich. 16.6 8,6 8.0
Pa. 36.5 11.0 5.5
N1Y. 16.1 8.7 7.5
Ma. 16.0 10.1 6.0
Iowa 15.4 8.5 6.8
N.J. 153 9.5 5:8
Ohio 15.3 9.3 6.0
Wisc. 15.3 8.2 7.1
lInd. 14.9 8.7 6.2
II4. 144 86 5.8
Conn. 13.2 7.5 5,7
Del. 12.8 8.0 4.8
1960 Tax Bite in the Eight-hourDay
011 average, ach i us works twi hours and 16 nminusItes o every
eigblbbur workling day to iei our tax bills. Only one sour, 28 1in.
sites of wiSink is iettleicd to Ileet Iftil costs. 1i 11958, two huts aid 12
iiiltitcs of work was re1iiiredl its usec taxes.
(2atOlsl risis svailts t wilhll s-has-ge ons ' elsu)
Welfare Took
10% of G.N.P.
Old acuiiit tanics wonri't lie
forgot ill 1960 as ste rae o tax
(or ()ld-Age Survivors' anl Dis-
ability insuranre reachels its
tet aind greatest lieilhi, accord-
iig to 'lax Foundation, fic.
Ai 3 pserceist rate, to lie paid
lty hth eniployer suIsd etstl)loyce
oil the first $1,800 oif iioile,
has, shice jaiila ry I, repilaceid
tine hOr::ier 2V2 percetit rate, At
estlislsaitei 75 tiillion jieltoiss
will ire alfected lay the rise.
The itew rate rellect- the vast
grows atnItl srope of the Fed-
eral goveretis's insuiriltie
priircigsi sitice its inaiuguration
in 19:37. Niore issl iore elderly
isersois sire drawving utore lilser-
aimed leiiel'ias, s Iinui si thalt
iayielt:s have exceeded re-
ceils for the past few years.
Apslication of tie tew rate is
calctlated itr britig fiyinents
and receipts more nearly even.
Its fiscal 1937 when OASI
taxes were first collected, re-
ceis itioitionted to $252 imil-
lio. I.eseil s lass year, (1959)
wee $8.5 billion.
It is estitisteil that illore lsall
111/2 bill-io will lie 1)aidl Iront
%,it sits ttiss fnlds aundl Federal
ili atriaittns in fiscil 19110 for
hJelili ts atl set cires io she ahlgeJ.
I is estihnaeil thai more Ihal
$50.I billion hiss been palsl to
).\SI Ibeneficiaries since itn.
1110.
h'lie ulward srend of spend-
lug-aid taxig-lor iociil vel.
fare irogratts is also relleceld in
a receie iotpilation ly site U.S.
liceartinent of Ilealth, Flica.
I on aid Welfare. It shows tlhat
spetiding in fiscal 1958 (Iatest
year availhaile) for all social wel.
fate pirograsti nit|it ied to $14
tilllon, or muore Lhi teis per.
ceti nt fthe lhen gross nationIl
roshttct, $135!/ hillin. The
Isrevions fiscal year, it s 8.8
percent of GNI'.
You 'Owe'
$43 More
Ahhough you've left 1959 be.
hind forever, you'll carry one
of its problenms into lue new
year, satys 'lTax Fonthsion, ic.
I'liat's your itise of total gov-
ernnent debl. The research or.
ganiio lnlis ethis each
of its owes $2,007 iii iccoiss
of sotal gross governitieut debs
-figured as of the entl of fiscal
1959. That's $43 asose shan in
1958 aisl four tiutnes per caspita
thebt 20 years ago.
The total gross governmelt
dlet, Federal, state and local,
grew sin estintated $13 billion
bet seen tie end of fiscal 1958
atit 1959 whet: it sas $348
billioshn.
Of this attmtosunt, the Federal
t overnieit' share was $285
illlot:, the stites' share smut esti-
tesased 17 shillon sd local gov.
eritlents share, $i6 iillion.
Oil tile basis of these figures,
the individtal Aneriean's
owings on at count af Federal
debt i fiscal 1959 increased by
$20 over fiscal 1958 when the
per capita figure was $1,623: lis
'uwings for state det were
$99. uDp $9 over fiscal 1958,
while his indebtedness on ac-
cotunt of local governmlent debt
was $261, 1tsp $13 over 1958. The
figures ly selected years:
Per Capita Debt In Selected fil Years
Year rodsril Slate Local TIta
1950 1,731 36 127 1,893
1955 1.702 69 205 1,977
1958 1,623 90 251 1,964
s1959 1,643 99 264 2,007
'Estinated Io shale and ocal.
Asi 18,000-foot test hole is to
lie bored it so the earth's mat tie,
tIis year, part of all effort to see
what's utderteath, Renportedly,
Congress will be asked to
Iudget $3 million to help the
work. Wisth Federal debt $291
billion, this idea deserves
leep thought.
See Fiscal 1960 Spending
Reaching Record $156 Billion
All previous governsecut spending and taxing recoids scint
likely to be broken in 1960, Tax Foundatlion, Inc. estimates. Fed-
eral, state and local governments' total spendlit; may reach 5156
billion during this fiscal year, she research orgasizalon calculies.
The last actual year figure available (F.V.1158) a ordin itto a
(:etsus Bureau survey, showed total sletling at $131.9 illion.
If tie estimates are istsrlt
Quizzes: $8.8 Million out, the 5jetl.ing figure will
reptesent a Mtew lugit of arounlidl
An estimate made by one $2800 er fauisly. As recentl' as
Senator as tie 861th Congress 1918, te total expenditilc but-
ended its Ist session, indicated des per family was onily $1,19l.
that money autholsiation,, for Total Fetletal spendiig lit
Senate and lassise cot11111i see the lincal year will likely winl
investigations and lo sen prr i 1: at $118 Iillitn on the basis
poses totaled $1.8 mil lion. I 0 the It:-eat:' survey figies
The S1it is equivalet to le (whih icliude expelitures o[
Federal individual itictinetaxes trust fuInds aiil gros e iI Ciull-
paid by 27,000 Aiericats (itar- Lt'es of slte 1st ollice atti ihller
ried, witlh two tildren, earning gtvcrnnient citeiplikes). Iilis
$4,500 a year). will be abisit $12 billiu iiitu
thIan in fisessl 1(158.
State siettdiing [orn owi
sources (excltdiig ls' hoi
other govertimetsj, tile oisuin-
dlaion essinates, ntay reaih $28
billios it fiscal 1960, or alisse
$5 sillion above stail 1958
a- . spendiiig. Fin!!, Isis al sltild-
htng (front Olvil %souiceS.) is
likely so hit $30 hsilltt0s as ussi-
pared whit $26 billisn in 1958.
l'oil Feleral, state aitsd Iial
tax collectionts it fiscal 19111i it
to esthnated at $126 billion (ex.
c iidi governeiest elite: it 5e
receipts asnil istlax rvetiele).
' ' a, Outlook 'Forbidding'
As we enter the dectasl s!
tile 19601is. said Ir. Itobeil I.
WVORKERS. It the period Frenich. Foisldation ti'eside,
195-1.59, total payroll costs of lthe liittiehiate fiscal outlisok is
Federal civilian agclies in tie folbihllg. Alisoigih tie iew
Execsitive lranich a site goverit. Federal bsudget Isoliosed (or fis.
nient itcreased 35 percent, firom cal 1961 provides a slibstsit:al
$4.9 bililis to $.13) lbillion. Tle sarplus, spe:lling pelessilt's ls
tet increiase of over 83,000 couiless in ateleclitin year
sentrkees in these elviliin age:- could easily obliterate that illar-
eies disring this period, accord. in snd hiltlge itn titter ilto
gil to she Byrd Coninitce, te . At i l i ld.
silles! 0 frost: getteral growth ing illel5tles beflre (:isllgli
attil exlansion in 36 ageiees: dwarfs tie 1oi el s I islts.
tle reation of 2.1 new ageicies; Nuci of I li i I lit
general decrease or cirtailhnent so uiclease its Fedel Spending
of 17 and abolition of 17 ageti- over the piast five )eais is i iI
ties. the delesse atrea, if which oiust
over-all litl ases ste s;I'u alk al
P.O. laig.st worer irleii tributeed, bit it i anit ) ii ls ie'
lay civilini agsncy i r deqssrv, in coistrollable doiiestic slvild.
tiresit it, the 1954.59 fenriod, lIg ptograns - for latitn subsi.
40,J37, :,,as in the Post Ofire, dies, vetera::s, housingand lvai.
This is more than thein individ. otis net and cosils Fedile:l aids
uaal slate pnsonalio increases to states ansd locaities.
in 1950-56 it Malise, New I tite states, 17 legisls
llarnplhire, folil arld Soulh unetillg it: budget sessiois and
Dakota, Idahn, Ohllahsotsa or six others scheduled for slgulsi
11yont tit . sessions iii 1960 sie cot:oiled
with tite usille ptoblemsl that
LOGITIC]S. 111 recent coal- [llI led tille statles thicitigh [ihe
pitttlion, slte U.S. ilitary still :- tsexllitlds oeltsi that
ply systesis hal st: invettory :ss Outpates revettestsl sli tliat.
warehouttes ;is ulelso. ctoughl . ens further slistaiutial in i w
Oit the world valed at ablsit i reol slelt.
$47 illion-t cottniingeq ip n f te liwatl slseislitig
Inent sich as planes aitl 5hlilts. trend at all levels gsvse:iI
The materh! is stocker], world. went is pelititted to dililiale
swide, at approximately 2,700 the new decade, our hli:sly
isilisary insta Ilat ions. heavy sax bisldent will se taillir
. . . increase. otlllllll hlIas u.
IN AND OUT. Barl year, inottey except what it gei, listisi
hitug osh view fits: tan d r . PseipiAe.
air anld orierhisd, about $15 T lIe isolle and heir Is-gis.
)uli tUio rth of material is fill Iators it laslhiigsino and ilt.
into this supsly syslent. Sisul. state capitals luist first islig.
taneously the ntation's operaling nize site lrtelenl Trentils il tse)
forces rositsllte, sssear Out an waiti to keep goverttlsletls
equal asmounst. speniding (rain gettiig enttsely
0 - 0 osie of isasld, Not only the pris.
SURI'PIUS. it 1958., tie De. eist and prosp ectve tax li:it ,
partinclit of D~cfse ilisjsosel of brie the continued tIhreat si
$8 billion worlth of susrplus sit'. really lisastross itiiilli Isir
telilail, a eirdiug toaspokes, vile ctiiells asdil lgishl sit
h11i3:, exce: i to di lose of $10. alike the stringest kisil of it.
$12 billion more cach year for centive to get goversinient
site tiext several years spiendl n ittller control.](ViewImageLocal?handle=hein.tera/taxfeaturs0004&div=1&collection=&method=preview&ext=.png&size=3)