The Montgomery advertiser., 1901-07-02

6I151d not be disturbed. Such pro- Xl11tua, however, are not found in the m[G1t and progressive States of the onton. and their marvellous growth n wealth and prosperity in the xace of the absence of such limitation m the taxing power, is a complete EEkutation of the argument so earn Gstly made by the distinguished chair 1nan ofthe committee-that no State <1n prosper or expect the investment 'uk capital in its borders that does not uontain similar limitation.
 Another result of this limitation on he taxing power we have learned from Experfence, Is that when, by reason Of &his prohibition on rate of taxation, the } k4kislature is confronted with deficit, ' is unable to provide necessary reve-
 TO meet the expenses of government 1hey must necessarily resort to license Dr privilege taxes to supply the defi- nfency. This is the lesson which ptudy of our financial history teaches. { During the last administration to meet the increased deands of he State government, the Leg 1slature swept the field of ex- bedient and exhausted the 6ta- logue of subjects on which they might impose the burden of a license or priv Dlege tax. The result Is that the State and county and municipalities in or der to supplement an insufficient reve- hue have imposed license or privilege taxes on every class of occupation, in dustrtes or business from the wealthy corporation to the newsboy and boot- black and the humblest tailor in the 0tate, from baseball p<Tks to hobby 1ofscs. No occupation or business has escaped.
 < 1Gr. Reese-Are not those taxes for city licenses imposed by the City Coun- els at the request of the merchants to keep out the competition of the farmer?
 Mr. O'Neal-I care not at whose re- quest they are made. I say such taxes operate onerously upon the great agri- cultural classes of the State, and the trouble is that by the limit upon your rae of taxation, you force the counties and cities of your State to supplement khefr deficient revenues by these harsh. Arbitrary and unjust privilege taxes.
 Mir. C'Inningham-I fail to see the connection in the rate of tax limit up- on taxation for State purposes with the revenues for county and city purposes.
 Mir. O'Neal-I will state the connec- fion. The State is doing the same thing. The connection is this: The State Is imposing these license privi- iege taxes on every class of business and occupation. AS I stated, the last Legislature swept the whole catalogue of subjects and exhausted every imag- inabie subject to increase the privilege taxes and the city and counties have followed the example of the State. Mr. Brcoks-Don't the gentleman know t.Iat for many years the cities have been levying this privilege tax, 1onc heforA fha T.eRislAfnre?
 Mir. O'Neal-They have. but not to the same extent.
 Mir. Brooks-Then it is not under the influence of the Legislature that they have done it? r.-..
 Mr. O'NeaEThey have been imposing it only to a limited extent Not to the same extent as in recent years.
 Mir. Brooks-Haven't these privilege taxes always been paid in the cities witholt reference 90 the State?
 Mir. O'Neal-The Legislature would have it in its power to forbid the levy ing of such taxes. The Legislature grants every charter in the State, and 1t would be in the power of the Legis- lature to forbid any corporation or city from imposing any such privilege tax.
 This form of taxation Is the most arbitrary, unequal, unjust and in quisitorial that can be devised. It is not imposed according to the capital invested. or the income derived from the calling, occupation, profession or business. 1t operates as a positive and vexatious letter upon trade and com- merce to close the doors and avenues of employment to many of the most deserving in the State.. It has retard- ed our growth and prosperity, for where the avenues of trade and em- pIoyment are even partially blocked by restrictive legislation, the highest development of industry and commerce cannot exist.
 In most of the towns and cities of the State are found numerous and vexatious statutes imposing license taxes on the sale of farm products. with the result that the market for the farmers has been curtailed and the cost of living increased enormously. In my own town, which is but an illustra- ton of what exists in almost all oth- CTS. the farmer cannot sell his beef or mutton to the consumer at retail. The country merchant, who formerly gath cred the farm products of his neighbor- hood--p oultry, butter, eggs and other fruits and vegetables-is required to take out license before bartering or selling to the consumer in the city. The farmer, it is true, can sell with out license a portion of the products on his own farm, but if he supplements his gupply by purchase from his neighbors, he must pay a privilege tax.
 So these license or privilege taxes op- crate most progressively and grievously on that class of our population-the great agricultural classeS-which de- eerve and should receive the fostering care and protection of government.
 So. MT. President, the conclusions un- mistakably follow that when you re- duce the limit of State taxation and force the Legislature to resort to other methods to supplement the revenue of khe State, you do not decrease taxation, but merely substitute for a just ad valorem tax in force throughout the State, the harsh, arbitrary, unjust and unequal system of license or privilege taxes.
 The adoption of this reduction means a approximation in this State of the harshest. and most unequal and onerous system of license taxation ever imposed on free people, with all the manifold evils.
 So I say to the distinguished chair man of the Taxation Committee that the people of Alabama will not be mis- led by the morsel of tax reduction you offer them.
 They are grooming beneath the bur den of these license taxes, and y6n heed their appeals by offering them a remedy which only aggravates the evil--a remedy which you confess, if your estimates are erroneous, may ieopardize the splendid credit and high