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![handle is hein.tera/taxfeaturs0011 and id is 1 raw text is: TAX FOUNDATION'S
MONTHLY TAX FEATURES
Copyright 1967 b, Tax Foundation, lie., 50 Rockefeller Plaza, Ne Yok, N. Y'. 10020
Ja try 1967
Vol. 11, 4umber 1
Iotoal rieniltllurcs for all slate and iocal governmient selfare [tstlU-
tio1i, sas Tax Flolunlationll's Fiscal Outlook for Slate and Local Gollic, n.
lileli t /91, nay reth SI17 billion by 1975 or ;ii estlnatel $79 1ier
lier1lin. fie chiarl s1iifhe aclual per capita rise in setlare spening
1918.5, lile Ike ii 1918-61 trenlds li nulildl, and Ihe projected rise
tn 1975.
ISn(r s, ,r.m n,oitoaqhl ,,iItnl, ct.,0, o~t cesseel)
1966 State Tax Take Report
Augurs Better Fiscal Future
Forty-seven state legislatures,
flit satte nimber that met in
1965, will convene in 1967.
Forty-one will meet in January,
notes T ax Foundation, Ic.
'TIle last tlme as many let,
enough new taxes were adop ted
(or rates of old ones raised) to
add an estimated $1.3 billinn a
Sear to states' revenues.
Viile tile perennial problems
of fiuancing education, welfare
and highsway building idonuht-
Idly wilI plresent themselves
alel, uliations are that--bhear-
ing out a Foandation 1965-75
evaluation of tle plnspective
alility of slate anI local govern-
Ilients to meet fitnre responsibil.
ilirs--a turn for the fiscal better
tnas he in the making.
Most recent reports show that
state tax revenues rose sharply
in the fiscal years ending in 1966,
tulp $3.2 tillion, or just over 12
plclent from 1965. And 1966
state exptenditures rose only 8
Prrent, thus leaving tile states
Ill a more comfortable financial
Spot 1than they've oceuplied it re-
rent years.
May Ask Tax Increae
'Ile Fonidatiot projection in-
dicated that in the next dercade,
slat' and local general revenues
lvit] rise sonewllat more rapI.
idly' tan general speinlg. Al.
-rdy a i North Caiolina, with a
loht irilieated for the year
eullIg next June, inoves are
afoot to cut taxes. However, in-
lieations are that i oither states,
lax incieases still may lie asked
dtring tIe rirrent sessions.
Tli' Foundation study said
that a major restrailling element
on1 slate fu11 local governlment
spiending in tle years aliead will
he a decline in 1m (ilation
gIno, ill. larliellary in ilhe elderly
and sery young categories, tuis
tendilig to reduce rates of its-
crease in welfare and education
expenditures.
Wllile two state-.local fnic-
tions. hiacat and highways,
said tIe ui, tire expected to
grow at a less rapid pace be-
Iwceen nw and 197!,, the most
dynaoic growth will le iii put.
lie welfare, health and hosplitals,
ant a great variely of misella.
neos fullctions
In tie 1966 legislative year,
when 2.4 slates held regular ses-
slols and II slecial sessions, a
lelatively light lody of tax legils-
lation restified. Nevertlieles, Ithe
Fotdatlion ntes,. new or in-
eseased taxr added over halt a
trillion dollars a year to state
tax blnrdens.
Spending May Reach $86 Billion
This final figure, however, was
mlch smaller than ti e $1.4 hil-
lion of tax expansion requested
when the legislatures first met.
'Iie Foundation ploints out
that in 1965, state-local general
expenditlres hit $75 billioln; in
1966, $00.1 billion. 'Iley may
reach $86 billion in 1967.
For iollie states, (New York
is one example) Iliere will be
urgency to hurry legislative ses-
sione along sinlce tile state con-
stiltutiol is to be re-written this
year, too.
In recent years legislative ses-
sils have bL-oiite increasingly
lon~ger - arid more freluent.
'weenty states now hold annual
sessions; at tlre beginnilg of
World War 11, only four states
llet annually. 'Ihirty states now
hold biennial regular sessions.
During tile 1956-65 ieriod,
three states hlad ten or more
special sessions, Alabama al
C'alifornia 13 each, Maryland,
ten, while 20 more legislature.s
lid between five and rnie.
For the longer-and more fre-
Iluent-sesions, the pay of legis'
lators has been increasilng since
the end of World War I. The
pay range as of early 1966 went
fronim $201) in New Ilaopslire to
,2$20,000 in New York and Nichi.
ga. On a per capita basis, com-
pensation in tile 1964-65 period
ran from .1 cents in *ennessee to
$2.92 in Alaska.
'66 Legislator Gets
Triple His 1950 Pay
Recent dismissal of a suit cha
lenging expense payments I
$322,320 to North Dakota's 196
legislature, recalls, says 'la
Foulation, Inc., that salaries c
slate legislators il many case
have doubled, tripled-even al
most clsintupled-in the perio
1950.1966. Salaries calculate
for tle biennium (for regula
sessions) went up thus:
195051 1965.66
California $ 7,200 $12.00
Colorado ... ..... 2,400 6,40
Illinois . 6,000 18,00
Michigan .. 4,800 20.00
Hew Jersey .. 6,000 15,00
New ok .. 10.000 20,0
*'eloi., ehuo.,. .I~nl 1961,
li most states legislators also
get compensation for travel ant
additiotal expenses,
Unfunny Tax-
Amusement
Ihere's notlting cottical aboul
alnliselneut taxes. Not when
the revenue accruing from their
to a imtajority of the 50 state,
these days brings in approxi.
mately $35 million, notes Tao
Foundation.
A itis' e t taxes are collectei
in most stales tinder two cate-
gories, says the Foundation: as
selective sales taxes or tinder li-
censing regulations.
Under this sales tax category,
analiselulent taxes are put on play-
log cards and punch boards, sta-
diim tickets, race tracks, dog
tracks, jai-alai, athletic exlibl-
tints, boxing and wrestling
mlatches, gambling, and pinball
and slot nachlines.
'No Whistling on Sunday'
Under licensing, the following,
anio'lg others, are taxed as
amnuseimlents : slot nsachinues,
10o lables, Iirngo and raffles,
racing registrations, race tracks,
:otion Ipicture films, carnivals,
us ic boxes (Maryland), enter-
lainlinent on the Lord's Day
(Mas.), horse racing, boxing,
billiards, bawling alleys, wres.
fling, pool rooms and circuses
(Verniont).
'lese taxes oil amnusements
are in addition to stwic levies on
Iunting and fishing and pan.
mlliel racing.
'The amusement tax brntght in
approximately $35 million is
1966, according to llrelilltinary
ligires. 'This aiount was $16
inillinr greater than was col-
Iclcd in 1956, tite Frindation
noted.
Leading state collectors of
anmuselent taxes in 1966 and
1956 (in thoisands of dollars)
urge 1ess
N. $11.237 Ny. 0 H .e19
N. 4.4s N. Y. 2,490
M. e 1 i73 Wish,
d0' 1 - 1:130'
W.sh. s K1. s1,10
'll' other states() and their
196)6 and 1956 allsellent tax
collections (in thousands of dl.
lars) :
Ale. $ 42 S 27 Me. 11.10
Alas. 54 Mt -M -
Ash. 153 Ti Nb. -124 6
Calif. 140 iS5 N.H. 5 -
Coet. is s NI. Ia s
Cenn. T4 126 1
Del. 35 I11 MC. 689 Soo
Fla. 1,360 ego N.O, 45 57
Idsho I Is Ohio 5 19
on. 1,242 ita Ol. 452 366
lao, 27 43 Ofe, 230 36
Kins. 41 51 Pa. 39 iN
Xy. 360 1730 AI. 1 26
t. ito ' 0S 'E 1.737 00S
Mea. 34 25 Tesn. 212 361
Md. ,.309 733 Te,. 1,052 475
Mel,. 62 23 1 Vt. 42 32
Mich. 5a 35 Va. 24 o?
Minn. N 13 W. Va. 135 -
MIs,. 406 412 Will. 3
A Iowal Me 41), S.0 Utah mn
W e ...os~ a~. j. e,
r e o u e d e l ia,. s r #. Ms H I sM .
(S)eported U genera~l Il0n 111,
One pressing osItiction that will
detmand an answer as tIhe 90th
Cingress begils, says lNsx Founi-
dation, Inc., is: how long cas
'Uttele Sam's debt be kept
beneath tit: telporary $330
billlion ceililng fixed for it last
May?
lleht (and the inlterest oIl it)
Ildks large in auy Federal
budget. Of the items in the orig.
inal fiscal 1967, $112.8 billion
budget, interest oil debt was tie
second mnst costly.
Only the lilitay funetiolns of
the )efense I)epartment cool-
mand bigger annts. Paynetns
for interest are now eqlivalenlt
to $219 per U.S. hlosehold, as
estlliated hry tile Fouodatiolln.
TIle erinanenlt debt ceiling
is $205 hillionn. hut it lhas long
ceased to be much more lhan at
oitnroded Ilnelun ark. 'Ilie tenll.
,orary ceililg has grown fron
321 billinn In $330 Iillion wilin
tile past two years.
When a new temporary ceil-
IS D. C. BURNING? A sub.
conmtllee of Congress, inrveiti.
galing the extent and coit of
Federal government record keep.
ing, says that if one governmsent
record aks burned eery second,
ir would fake 2,000 years o get
rid of oil of then. Government
paperwork, said thue subcotniit.
lee, costs $8 billion a year, or $40
pee Americon.
go If * or
SAVING. A menmo from itle
Postmaster General to the Presi-
dent on having the Post Office
Delartmentconstnsct and occupy
is on Inuldings, rather than
leasing space (as over fhe past
ten years), notes this method
weuld be less costly. 'h'lie Gen-
eral Accountilg Office had re.
ing was proposed at $3:12 billion
last Spring, Corigres ialked and
set the $330 figuir. 'The I reasury
said it accepted the ceiling r-
luctantly and a spokesnan thln
said there likely woili lie another
boost asked before fiscal 1967
ended (nlcot .Jun.e 30).
It was ploiled out that the
ceiling figire requested inolved
$3 billion fur a contliuenry re-
serve. With only $330 blillion on
work on, said the 'raiuty
spokesman, tiis figme was
deetied too thin a margin for
prudent operation.
Paylments for intelest have
gone fint $7.3 billion tn )-ears
ago to Ihe curreni $12.9 tillion.
Fedral deblt iterest pavillents
by s,'lecied fiscal Neals and ll oI
per household basis al din, n
Ile Parlel for
FY. (in an It, $) iill lotl
11.5 ISO11.9 4.lhl
19497 $9,012 1121'
1957 1,301 147
1e65 11.431 200
1166 12.104 208
IE967 12.854 719
tIi.
ported earlier that in one town
It cost $4 million to build a
leased structure; that P.O. rent
over 30 years wonuld come to
$9.5 nillion and, if tie P.O.
decided to bisey the building, it
woumld have to pay $1.5 millio,
or about $550,00r Pre than the
stncture origina, ,osl.
Say 1967 Gov't Spending
Will Reach $254 Billion
Government spending, Federal, state and local, will pass thr
iarter trillion dollar mark in the fiscal year ending next Tite,
'lax Foundation, Inc. said today. The estimated $254 billion total
will be $29 billion higher than in fiscal 1966, more than double
tle expenditure figure of ten years ago, and the equivalhnt rof
$4,305 per American houseltold. Ten years ago, in fiscal 1957, the
spending equivalent per house.
hold was $2,526. 'ie research organization
Since fiscal 1960, Federal gov- noted that since 1957, state ex-
ernlent spending alone hIs in. penclitres (except between 1959
creased about $70 billion, the and 1960) have bwn aalalk
Foundation calculated. Since by $2 or $3 billion. The tsmall-
1957, both state and local slend. est vea to-year increase, just
ing has practically doubled. over $1 billion, was from Oftl
'Ile private resiarch organiza- to 1962.
tion's estimate shows that total
government s r.,ding itas all bit Hikes Steady Since 1957
itintupled since the low spend. The Foundation said that ain-
ing 1lo(int fnllowing the end of lin
Wor d War I. iat increases in local govern.
Since 1960, Federal spendilg mient spending have been on the
has leaped frots just below $100 order of $2 or $3 billion ind
hillion to all estimated $167 hit- have been steady since fiscal
lion it fisral 1967, includiig 1957. Tie smallest increase s
trust fund and gross post office from 1959 to 1960, just tinder $2
spending. billion. 'The table below shows
''he last tinte there was a Fed. the increase in total government
era] bitdget surpli, tte Foinda- spending, and in Federal, slate
tion pointed nut, was in 1960. or local government spening
Since that ttle Federal exen, tiron 1957 to 1967:
diltires have risen nearly 72 11. Ial 9.r . state ti¢.
eit cent, a imaine parteof the l i.l1lnl.. $I
'57 $125,463 $81,783 $20,405 $23.274
Increase goig to finance on. 67 254,000 167.000 41,000 4D.000
defense activities. c.
Debt Interest Payments
Equal $219 Per Household](ViewImageLocal?handle=hein.tera/taxfeaturs0011&div=1&collection=&method=preview&ext=.png&size=3)