Sources of Revenue of the States with a Special Study of the Revenue Sources of Pennsylvania

Abstract

be rendered more productive. It may be a valuable aid, therefore, to a correct appreciation of this problem to demonstrate with the aid of simple diagrams the present revenue sources of the states, the per capita contribution, and the relative productivity of each source. Furthermore, it may prove of particular interest to supplement this study of the states with a special study of the revenue system of Pennsylvania, certain features of which are both unique and suggestive. Table I presents an analysis of the aggregate revenue receipts of the states for the year 1919. These statistics incorporate the revenues collected for the fiscal years ending on some date between July 1, 1918 and June 30, 1919, and are the latest statistics available for this purpose. It is evident in the first place from chart I that the states are largely dependent upon taxation for their revenue, since taxes yielded 78.2 per cent of the total. Only seven states in 1919 received less than 60 per cent of their revenue r ceipts from taxes. In this group were Minnesota, Missouri, North Dakota, South Dakota, Montana, Idaho, and Wyoming. States deriving almost 90 per cent or more of their revenue receipts from taxes were Pennsylvania, New York, New Jersey, and Illinois. The general departmental receipts rank next in importance to taxes and comprise those amounts received by the states in exchange for certain.