Increasing State and Local Taxation

November 24, 1926

Report Outline
Comparative Increases in Taxation
Increase in Public Indebtedness

The tax revenues of the federal government during the fiscal year 1926 were $2,567,392,196 below the total of collections in 1920 when federal taxes were at their peak. The reduction in federal taxes during the last six years has approximated 48 per cent.1

Throughout this period of reduction in the burden of federal taxation, the taxes imposed by state and local governments have steadily increased. Figures for 1926 will not be available until after the close of the present calendar year, but from 1919 to 1925, while a net reduction of 39 per cent was being effected in federal taxes, state taxes increased nearly 110 per cent and local taxes, in cities containing one third of the national population, about doubled.

Notwithstanding the rapid post-war increases in taxation, the revenues of the state and local governments have failed to keep pace with their expenditures, and as a consequence there has been a steady increase in the outstanding indebtedness of these civil divisions.

ISSUE TRACKER for Related Reports
State and Local Taxes
May 04, 1966  Local Income Taxes and Revenue Needs
Feb. 13, 1963  State and Local Taxation
Dec. 10, 1958  Local Income Taxes
Aug. 16, 1941  State-Local Finance in the War Emergency
Sep. 28, 1937  State Control of Local Finance
Jul. 09, 1932  New Sources of State and Local Revenues
Sep. 16, 1930  Rising Cost of State and Local Government
Nov. 24, 1926  Increasing State and Local Taxation
Jul. 20, 1925  Problems of State and Local Taxation
State and Local Taxes
State, Local, and Intergovernmental Relations