National Affairs: Reversing a Trend

In 1929, the U.S. Government took only 35¢ of the taxpayer's dollar, while 65¢ went to states and local governments. Then a quarter of a century of centralization, high spending and war shifted the balance. By 1953 the pie was cut 75¢ for the Federal Government, 25¢ for the states and local governments. In 1955 the trend is being reversed. The current estimate is 71¢ to 29¢.

By cutting back and holding down federal taxes and expenditures, the Eisenhower Administration has sliced off a slightly smaller cut of the tax pie for the Federal Government. Last week, as state legislatures were completing...