American Agriculturist, April 5,1924 
The State’s Tax Dollar 
Where It Comes From and Where It Goes—A Radio Talk 
T HROUGH the courtesy of the American 
Agriculturist and WEAF of the American 
Telegraph and Telephone Company the New 
York State Tax Commission avails itself of this 
opportunity to outline the sources of revenue of 
the State and the amounts which it, pays out 
annually for 
its various 
activities. 
Of the total 
estimated 
business in¬ 
come of the 
State for the 
year begin¬ 
ning July 1, 
1924, of $108,- 
800,000 as 
shown in the 
message of 
Governor 
Smith to the 
Legislature 
this year, 
39^2 cents of 
each revenue dollar, or $43,000,000, will be re¬ 
ceived from organization fees of new corporations 
and the taxes which they pay at the rate of 
per cent, on their net income. 
In addition to this total estimated revenue of 
$108,800,000, the State comptroller figures on an 
expected surplus on July 1, 1924, of fifty and a 
half million dollars, so the State’s actual ex¬ 
penditures in 1924 will reach $160,- 
800,000. 
Next in producing power is the 
anticipated collection of 17.8 cents of 
each revenue dollar, or nineteen and a 
half million dollars, from the State’s 
share of the automobile registration 
fees. An additional six and a half 
millions from these fees is turned back 
to the counties for improvement of 
town highways. 
Third in line on the revenue side of 
the ledger is the probable 15^2 cents 
of each revenue dollar, or $17,000,000, 
which will be collected from the in¬ 
heritance tax. This is paid by repre¬ 
sentatives of estates and is a tax 
which the State assesses before it 
permits a person who dies to transfer 
his property to his relatives or others. 
Only 7^2 cents of each revenue 
dollar, or eight and a quarter millions 
is figured as the State’s share of per¬ 
sonal income tax collections this year. 
Although Governor Smith reduced 
by one-quarter the tax due under this 
law, the localities—that is, the cities, 
towns and villages—will not suffer any 
part of this reduction. The amended 
law provides that whatever is collected 
must be divided, two-thirds to the 
localities and one-third to the State, 
so the State, as it were, stands the 
whole loss. A total revenue of twenty- 
four and three-quarter millions is 
estimated from this tax, of which 
sixteen and a half million goes to the 
towns, villages and cities. 
Although the State income tax 
bureau has sent a suggestion to hun¬ 
dreds of newspapers in the State that 
the intent of this law is that the tax¬ 
payer should make the cut himself, our 
incoming returns show that half of the 
persons are not paying any attention 
to if- It is a simple plan; all that the 
taxpayer is asked to do is to send in 
three-quarters of his tax payment 
instead of the amount which seems to 
be due from the face of his return. 
From taxes which the State imposes 
on stock transactions, known as the 
By THOMAS M. LYNCH 
Director, State Income Tax Bureau, Albany, N. Y. 
stock transfer tax, the treasury expects 6.4 cents 
of each collected dollar, or revenue to the extent 
of $7,000,000, while from the tax on mortgages, 
or the fee which a person pays each time a mort¬ 
gage is recorded, the State’s yield is estimated 
at 3b2 cents of each dollar or $4,000,000. 
Then comes the expected income of over one 
cent on each dollar, or $1,400,000, from the insur¬ 
ance premium tax; three-fifths of each cent, or 
$700,000, which the counties will pay as their 
share of the expenses of the court and stenog¬ 
rapher’s tax; one-tenth of each cent, or $200,000, 
from the tax on admissions to prize fights; and 
about one-tenth of each cent, or $170,000, from 
the tax on the exhibition of motion pictures; 
while the balance of 8 cents, or $9,090,000 is 
made up of other miscellaneous revenues and 
receipts. 
Now, turning to the other side of the State’s 
ledger, it is timely to note how each of its dollars 
of revenue is expended. 
First in this group comes 30 cents out of every 
tax dollar for educational purposes. There has 
been within recent time a proper recognition on 
the part of the State and the municipalities that 
our school teachers were underpaid. This accounts 
in part for this segment of the tax dollar. And, of 
course, part of these particular moneys is used for 
the improvement, rebuilding and maintenance of 
the State’s investment in Normal colleges, agri¬ 
cultural schools and other State-owned educa¬ 
tional institutions. 
There is also expended seven cents out of every 
tax dollar, paid out by the State, for interest 
on the public debt. This means not only the 
amount set aside for payment of such interest 
but also the accounts which have to be set up 
every year in order to provide a sufficient reserve 
to pay these bonds issued for building of highways, 
canals, schools and other purposes when such 
obligations become due.' 
Public wel¬ 
fare costs, 
covering the 
maintenance 
of our hos¬ 
pitals, reform¬ 
atories and 
charitable in¬ 
stitutions, use 
up an addi¬ 
tional nine¬ 
teen cents of 
each tax 
dollar. 
Four cents 
of this dollar 
is paid out by 
the State for 
the cost of 
inspection of buildings and factories, and also the 
maintenance of the National Guard and State 
police. 
Then there is brought into high 
relief the splendid investment which 
the State has made in its improved 
highways, requiring an annual pay¬ 
ment of 17 cents for each tax dollar, 
for their maintenance and cost of 
putting in new paved roads. But this 
is good business on the part of the 
Empire State because they attract 
hundreds of thousands of visitors to 
our picturesque mountain and lake 
regions and the money which these 
visitors spend among New York State 
tradesmen is a considerable factor 
in the industries of many communities. 
Only one cent on each tax dollar 
is paid by the State for health and 
scientific purposes, mainly expended 
through the State health department. 
Direct contact is always in existence 
between the State health department 
and the local health officials in every 
section of the State. Whenever an 
emergency occurs, that scientific com¬ 
mission of the State government is 
able to render efficient assistance in 
stamping out the possible spread of 
any contagious disease or other public 
health work. 
Another cent of each dollar is dis¬ 
bursed by the State for the regulation 
of the public utilities, such as steam and 
street railroads, telephone companies, 
and gas and electric corporations. 
The remaining 21 cents of the 
State expense dollar is used for the 
maintenance of courts and general 
administrative expenses of the legisla¬ 
ture and the various State departments 
and commissions. 
Modern man seeks better things 
and for them he taxes himself. We 
tax ourselves for both necessities and 
pleasures, such as the genial heat we 
enjoy in winter, the gas for cooking 
and lighting, electric light and tele¬ 
phone, the hot and cold water, warm 
carpets and comfortable furniture, our 
automobiles, our theaters. When 
thousands of men and women share 
these comforts together, each assumes 
(Continued, on page 361 ) 
1/ you believe in tax reduction sign the petition below , get your neighbor 
to sign it, and send it IMMEDIATELY to American Agriculturist, 
MU Fourth Avenue, New York City. 
TO THE GOVERNOR, THE LEGISLATURE, AND TO EVERY 
OTHER PUBLIC OFFICIAL IN STATE, COUNTY AND TOWN 
GOVERNMENT IN NEW YORK, PENNSYLVANIA AND NEW 
JERSEY. 
WHEREAS, first, taxation Has increased in tHis nation more than four times 
since 1913, and in our State and local governments more than three and a half 
times, and 
WHEREAS, second, this burden of taxation, particularly for State and local 
governments, falls heaviest and directly on farmers and farm property, amounting 
to 16.6% of the farmer’s income in 1922, stopping agricultural prosperity and 
fast becoming absolutely insupportable, and 
WHEREAS, third, the general basis of taxation is INCOME and not PROPERTY, 
and 
WHEREAS,-fourth, our national. State and local governments have made little 
real progress in cutting out unnecessary officers, government departments and 
appropriation bills since the end of the World War, therefore be it hereby 
RESOLVED: First, that we, the undersigned, are unalterably OPPOSED TO 
THE EXTENSION AT PRESENT OF ALL NATIONAL, STATE AND LOCAL GOV¬ 
ERNMENT ACTIVITIES. 
Second, that all of our national and local officers should give immediate at¬ 
tention to THE GRAVE NECESSITY OF LARGE REDUCTIONS IN ALL GOV¬ 
ERNMENT EXPENDITURES, to the reduction of government personnel, to com¬ 
bining and simplifying government departments and activities, to the need of 
short legislative sessions, to smaller expense accounts for public officials, to 
passing fewer laws, and in short, to the necessity for practicing the same economy 
in public affairs that farmers are constantly obliged to practice in the production 
of the necessities of life. 
Third, that we as farmers are not interested in credit or any other unsound 
farm relief legislation, BUT IN TAX REDUCTION. 
Fourth, that taxation, both State and national, be maintained on all luxuries, 
as for example, chewing gum, tobacco, motion pictures, etc. 
Fifth, that tax reduction be made TO ABOLISH DIRECT PROPERTY TAX. 
A REDUCTION OF INCOME TAXES IS NOT SATISFACTORY. The farmer’s 
income is from his property holdings and therefore his assessed valuation, par¬ 
ticularly on paper, is high. The reduction of income taxes, while government 
expenditures are still so high, will inevitably result in greater taxes on property, 
chiefly FARM REAL ESTATE. Signed eventually by 100,000 farmers. 
Name (write plainly) 
Address . 
(Paste blank paper to this petition for additional names.) 
Where New York State gets its Tax 
Dollar 
21 * 
What New York State’s Tax Dollars 
are spent for 
