The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-07-12
LILLE rAN CoMM1ssIoN,s WoRI1.

I1E4 4 ~ AON hASClON'- WYNN
The tax commission, after weeks in
| t5rmission. met at Atlanta on Monday,
and took up its work of studying the sub
ject of taxation for the purpose Of making
a report to the legislature on which 10
base new tax law.
There is no subject In which The people
are interested that is more important than
rhis, We have no doubt that the comm s.
sion realizes its importance fully, but be-
fore 1t decides upon its report il ought TO
give the most thoughtful consideration TO
the question as to whether il is advisable
TO recommend that money, and stocks and
bonds taxed at the same rate that real
estate taxed.
IT Is well known that the trainers OF the
constitution. in the matter of taxation
followed the constitution of Pennsylvania
which provides for very much lower
rate of taxation on personal property than
upon real estate In Pennsylvania there
fore mortgages, money, stocks and bonds
are taxed at a very much lower rate than
realty. In this state, on the other hand
with exactly the same provision in it's
constitution in respect to taxation, the
tax rate is the same on all kinds of prop
erty.
Why an Interpretation was placed or
the tax provisions of the constitution diff
ferent from that placed on ike provisions
in the Pennsylvania constitution it IS I'M
necessary now to explain. Ii is certain
however, that in Pennsylvania the law
placing a low rate on personal prop
erty is found to work satisfactorily, while
there is great complaint of the tax law
in this state, where capital, stocks and
bonds are taxed at the same rate as real
estate.
The heavy tax on capital and securities
is keeping capital and capitalists out of
the state. People depending upon securi-
ties for their incomes cannot afford to live
in Georgia cities. Not long ago a former
citizen of this city, man of considerable
means, said that he would like to resume
his residence here. but could not afford
to do so. The best of his securities do not
yield more than three and a half per cent,
and none Of them more than five per cent.
The average is probably about four and
a half per cent. The tax rate here is more
tllciil NNO anu d AldlL pei NGINs II Is DIP
parent therefore that more than half of
his income would have to go TO the tax
gatherers If he should make his home in
this city.
What should be done is this: The tax
rate on personal property ought to be
placed much below that on real estate
II is doubtful II the state would lose any
Il ing. Money then. instead of being sent
out of the state for investment would be
invested here in loans on real estate or
other security, and the increased amount
that would be returned for taxation would
more than make up for the lower rate.
II this were done the farmers who are
against a lower tax rate for personal
property, would be benefited, because they
would be able to borrow money at lower
rate of interest. They cannot borrow money
under eight per cent. interest. In the
cities very little home capital is loaned on
real estate. Most of that which is loaned
on mortgages is owned by parties living
outside of the state, and it pays no taxes
to either state county or city.
This matter Is one of such overshadow-
ing Importance that the tax commission
ought to approach it with minds free from
bias. Its members should consider the in
terests of the cities very carefully, be
cause the cities pay the great bulk of the
taxes. If ii were not for the cities the
state would have to cut down its appro-
priations more than two-thirds. As a mat
ter of fact there are comparatively few
counties which do not draw more money
out of the state treasury than they pay
into it, The counties which keep the
state on its feet financially are those in
which the cities and large towns are sit
uated That being the case, the interests
of the cities, in this matter of taxation,
should be very carefully considered. both
by the tax commission and the legislature