DISTRIBUTION OF TAX BURDEN UNDER SALES AND INCOME TAXES

yields an annual total of around $4 million. The general unemployment compensation tax plan in Kentucky is similar to that invoked elsewhere. The motor vehicle usage tax, the utility gross receipts tax and the gasoline tax may effect certain industries. The motor vehicle usage tax amounts to 3 per cent of the original sale price or the depreciated value of used' vehicles. It is normally paid but once. The utilities gross receipts tax is an excise tax on the provision of electric current, water, gas, telephone and telegraph services. It is imposed on the consumer but is collected from the supplier of the services who adds it to his price and accounts for it to the state. Manufacturers, however, are largely exempt from payment of the tax, as sales of electricity and gas used for manufacturing, mining, processing and refining are not taxed. This excise is intended to be a consumers tax but may incidentally affect certain producers. Kentucky imposes both an inheritance and an estate tax. The estate tax, which is an adjunct of the inheritance tax, is designed to take full advantage of the federal credit provision in the instance of large estates which are widely distributed among different beneficiaries. The rates of both the inheritance and the estate tax are higher than in the average of the states and the exemption to beneficiaries are lower. The explanation of the modest revenues lies in the fact th t Kentucky is not a rich state compare with the average and in the consequent fact that a given rate and exemption schedule in Kentucky will yield definitely less evenue than the same rate and exemption schedule would produce in the average state. The proportion of total state and local taxes in Kentucky derived from death taxes is about the same as in the average state.