GENERAL SUMMARY 343
revenue needs of the state seems to be some form of tax with
a high degree of fiscal adequacy, to supplement receipts
from other sources until the effect of improved adminis-
trative machinery and changed rates on the receipts from
the income tax can be ascertained. A tax on cigarette sales
for a period of several years is worthy of consideration as a
means of supplying this need.
The abandonment of the taxation of intangibles at general
property tax rates would mean a loss of revenue to the local
governments. An increase in the gasoline tax could be made,
and a portion of the receipts returned to the local govern-
ments. This procedure would be in accordance with a policy
found to be practicable in a great many states. Then, too,
there is a definite connection between good rural roads and
the carrying forward of a school consolidation program.
Also, an increase in the state-wide rate should make it pos-
sible to abandon the city rates that are now in effect, thereby
astablishing a uniform rate throughout the entire state.
OTHER ASPECTS OF THE Missouri FiscaL PROBLEM
The consolidation of county and other local governments
would seem to be an effective method of reducing the cost
of local government in Missouri. A well-planned county
consolidation program might indicate that sixty or even
fewer counties could provide better governmental facilities
and services than are now provided by 115 counties. The
same principle is applicable to the numerous state boards,
commissions, and bureaus, and excessive decentralization
can only result in costs that are out of proportion to the work
involved.
A system of local expenditure control similar to the one in
effect in Indiana would no doubt be reasonably effective in
keeping the cost of local government in Missouri within
proper bounds.
There is an urgent need for adequate statistics of local
governmental finances in Missouri and this is particularly
true of statistical information concerning local expenditures.
Uniform systems of accounting and expenditure classification
are desirable, if accurate data are to be obtained.
