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Project Note No. 28 Major State Taxes 1939 and 1950

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This study analyzes the major state tax yields and rates during the past decade. It also sheds some light on the extent to which increased yields of the state sales, income, and other taxes reflect shifts in taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. burdens. Seven major state taxes have been selected for study–the four major excise taxes (general sales, alcoholic beverage, tobacco and motor fuel), the income taxes (corporate and individual) and the motor vehicle tax.

Receipts from these taxes constituted 70 percent of all state tax collections, excluding unemployment compensation taxes, in 1939 and 77 percent of the 1950 total. (See Table ig).

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