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9 Monthly Tax Features 1 (1965)

handle is hein.tera/taxfeaturs0009 and id is 1 raw text is: ,%ji00, TAX FOUNDATION'S MONTHLY TAX FEATURES Copyright 1965 by Tax Foundation, Inc., 50 Rockefeller Plaza, New York 10020, N. 1'. Where the Money Comes From-Major State Tax Sources 1 .llrrrrg tile Target state tax stire(cs ire: geteral Sales. persoul in. ftrsorral incorie or general Sales; 23 have all three; I5 have two acl .i1 priale in(olliC, nolor I tl tta¢(o ind alcoolc ieserages. and II irave one of tire three. Nebraska levies it tiritrir [irel, Oil Tl.ytlrr, there six trtlr en brought itt $17 billion in 19611. Tire nail tobacco products atld alcoholic beverages, but not tin tihe olher three sl'i.vs Ihat 19 siles have at least orre of these three: crrra/rtxe intorie, sources. 'lie Figures it eacl state shoe tire 1963 per capita taxes. (i.oluin r ats available without charge ott request) State Payrolls Up 139% in Ten Years Tit the 10 yeats, 1953-63, intlhly salte parolls increased 1:19 peicnt, wlle the number orf stalte emllo)ees increased 60 pi' 1cIl, Tax Founrdation, lrc. I li a tie o f tile increases itr rrrul(lOy 1ct.) payroll costs in snitle of the Iatger states ira this irerinl are the following figures: (in mIlliSll) Calitornla $29 $93 N ew York 29 61 Pennsylvania 18 36 Michigan 13 33 Illinois II 32 'lThe largest government Col. iIyce increase was at the local level. The number of local gov. ernlnertt workers inrcreased fronm 3.6 nillion ir 1953 to 5.4 rnil- lion ir) 1963. State workers in- crrased fronr 1.1 r illion to 1.8 nmillinn. it 1963, Ness York State had 607,00 local governnrent work- ers, follwvsed by California with 577.100 and Illinois, 293,000. If the atimal increases ira total state splending contitue at tire rate of the past ten years-al- mnost 9 ipereest a year fromt 1953-63 -- tire spending total wrtuld double eves' eight years, accodng to Tax Fondaltion, f ie. Of tire increase in total state itlending sinee fiscal 1953, airout half has come in the past five yr'as. the Foundation's figures Irtlicatise of how emads for inote and rInt' state-local gov- erurrntt services have helped raise spenlrditg, are tt risl re- cent (19631) figures sh,iing the ,ig three state expedlitnres: 58% of States' Tax 1 1964 Major State Tax Rates 'Take' is from Sales Collections of sales and gross eccilits taxes-gencratl and se- Itrti'e- - far ontranked collc. tions of oither state taxes in fiscal 1961, Tax Foundatlo. Inc., pointed out. Nationwide, 58 per. cent nof all state tax collections earlte fmrt these levies. Collections of state income taxes, both personal and cor- porate, produced abort 21 per- cent of total state collections, according to the Foundation. 'the remainirg 21 percent of state tax collections came from licenses, rinoperty, and a wide variety of other special levies. On a state-by-state basis, about 81 percent of Illinois' collec- tions cattle from sales or gross receipls taxes in fiscal 196-1. Other states leaning most heavily on the sales tax were: Nevada (80C); West Virginia (79%); and Maite (78%). for education, Iighways, and Iurfite welfare, iicluding pay- Otrlts to local governents. lot 1963, of tie $10 billion spenlnrg total, $12 billion was spent for education. $9 billion for Iighways and about $5 bit- lior for Iulic welfare. It earlier fiscal years, the spenditg figures (in ulliors) were: Joel 1131 I193 11133 Education $10 $8 $7 $5 Highways 7 8 6 5 Wrifare 4 4 3 3 On a per person basis, state and local sprending in 1962 anmounted to: $120 for educa- tion; $56 for Itighways and $28 for public welfare. Tie Tax Fotndation, Inc. table below shows tire rates of tax levied by tire states on tie six major state tax sources and refers to the map above. In 1964, Nebraska was the only state not levying on personal or corporate income or on sales; it taxed gasoline, cigarettes and alcoholic beverages. iale Ala. ArJr. Art. Caltlf Conn. Ca. HawaiI Ind. Sare. Ky. tJ' U. Mils. Mo. NM. N.C. Ola. Pa. 5C. Tenn. Utah W. Virginia Wite. Alas. 0e. Idaho Maess. Mins. Mont. N.H. N.J. N.Y. Ore. Vr. Ft. Fta. Maine Mich. Nev. Ohlo S.D. Wish. Wy. iet. Cerp. tIr. (37 al s% s/ 0.5 5.5 0.5 2 3.5 5.7 14 2-.4 2 2 0 4 5 4 t.5 1.5 5.5.3 5 15 Port. Ille. (31 levy) 1.5.5% 1.5 .7 1.5 2.6 3. 24 t.5.5 2.6 1.0 2.4 t.4 a5.6 2.7I t.tt t.u 5 1-5 1.2.5.5 2.3.10 3.2.14.5 1.5-11 3.40.5 3.075 t.10.5 1.7 4.75 20111 2.10 2.7.5 2.5 aisel ta lest 4% 2 2 3 3.5 2 2, 3 2 3 3.5 2 3 225 a 2 5 3.5 3 4 2 3 3 2 150 lev) 70 65 5 6 a 6.3 6 5 5. 7 I,5 5 6 I 7 1 7.5 '5 0 Alcoht (Par Oal.) 150 tem) MS~b) $0.44 2.50 I.50 2.00 3.75 1t% whole 2.08 Ms 1.28 1050 (c) 1.20 1.50 MS 2.50 2,40 2.00 2.72 2.50 MS 2.25 4.00 1.15 MS(a) 2.25 2.86 MSh) Mt 1.60 1.50 M Msip M 2.50.5 1.52 Ms MS(kt 1.40 MS 1.25 n.ar MS MS(l) S.60 (Ms monopoly stale (a Includes counly tates lb 20%/ (I Dry stath le, On ImpOrted 11qu0r. d 11 15% sales oredI~ur 1. 4, 1sailts (I N. I. neme tao applies only 1o N. Y. reldenls employed In New Jersey. i15% ,siltl sale price 5 sieprice JI 15% 10etail price o .80 per gall.n January 1965 Vol. 9, Number I State Taxes Expected to Rise in 1965 State tax pirbles.ill nrob- ably get worse btfroi tiey get better, says Tax Fndation, Inc., notig that state tax col'c- lions have mnore than tripled in tie past 15 years. In tile past five )cals alo:, tirete have been nire tha a dozer 'inactnt s onf one rrf tire major late taxes (individual in- come, gaolne, cigarette, etc.) b), iollvidrual states and 117 ia- creases ilo tire elrectise tltes of titese major levies. The states' 1961 legislative sessions, acordling to the lFtunl- ation, cnrrtribttd little ir) the solutio of long-rnt tax pl b. lels. Witl .17 state lcgislatr's neeting in 1965, tiheir is hn d to be more vigororts tax lgis. lative activily as tire slal' try once tlnr to overclue the liwl- elial gair fetWeeil denmands for mor' rer vices and availale rev- eate sottes. Last (191t) year, nine states did act to increase vi'hlri fromr such tmajor taxes as iicrne, gas- olilr, sales. alcoholic brverages and cigarettes. Atn, at a tratter (if recrd, tire hliher tax rates imposed in 1963-together witlh continued eonolic i.s leity --brought state tax rollertins in the fiscal year ended last Jlte to a recod $2.1.2 hillioi. Allrit half of tire $2.2 rillii rise ia 1961 over 1963 stas alitriuicd by tire Frtndalion to lax-raising measures enacted in 1961 Debt More Than Quadrupled Although tax c'll'ctiris have grown by att average of it per- cent a year since the early 1950's. tile gal between cnorat rev- cone ard spenilg Iran fleilllt- ly been large; statr dit iar rtore than iroadrnlh'td in tie period urtil at tie l 'rrif ( 1911I) fiscal year it is esrimatd t te around $25 billin. The rise in state spending to $10 Irillion itt 196:1, a 1:15 1er- cent jtnip it tie past dlecarde, stens front tie ever-hirc'asing re(liests for more schools, more roads, tor w elfare, etc. Some of tire cOrt has hnert ilet by grants ftont the Federal gov. erment. IIt fiscal 1961 these grats to states and localities came to over $10 billion. li most iistanci's, tire states or Io. calities are rritthed to shiare the cost throogi rnatchitg. It is estitrated that 19 cents rf i's.it) $1 of state total rever e croles from tire central govertment. It was r ecntly prlomerd that the Federal govetinitnt gis r all additloal several billins t Ihe states and localities eahrl sta- in Inrit sulls. Thls rai'ses tire (tirnsrira. sayt tle Fonrlaiion: how wll wniid tire states tei'' dernatic. ni for services with tis 'xia Federal rlolrey? III this ronner. tion, the tablh belos shtnt. iry selected fiscal years. lnr stlae reveirnes, t'xltrtditrles and iis debt have iraccaed: Neov Fed. leplen. 0.n Brett r.A. l . l 'tre Sear,,, Debt tin hill1) - 64 $9 $43 $35 $25 '63 8 40 33 23 '59 6 31 23 17 '54 3 19 16 10 '49 2 12 10 4 Est. Double Every Eight Years?

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