LOCAL GOVERNMENT AND TAXATION 157 



an important factor afifecting the number, amount, and quality of 

 public services. This ratio between population and taxable wealth 

 may be modified in many ways. It is conceivable that as people 

 al^andon the area the taxable wealth remains the same, at least tem- 

 porarily, inasmuch as the owners become nonresidents and retain 

 title and pay taxes in hope of a satisfactory sale. Another situation 

 arises wherein the community with a stable population gains in taxa- 

 ble wealth, thus, in a different manner, altering the ratio between 

 population and taxable wealth. In other words, a change in the ratio 

 between population and taxable wealth may arise from situations 

 other than a declining population. Each situation has a bearing on 

 the wisdom of local expenditures, particularly capital outlays. This 

 whole problem merits investigation as a basis for intelligent planning 

 and action. The problem is a dynamic one inasmuch as economic 

 forces are constantly at work, in a state of nonequilibrium — forces that 

 warp the economy of the "little rejiublics" but may guide the behavior 

 of the populace if and when the facts are properly presented. 



6. Tax rates are now declining materially as a result of economic 

 conditions incited by the present war. Surely, a decline in tax rates 

 during a period of rising costs indicates a curtailment of public serv- 

 ices. A timely study might well examine the nature of this curtail- 

 ment and the subsequent results. 



