The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-03-02
Some Suggestions Relative to
the Revenue Act.
Objections That Would Destroy Its Usefulness
and Make it Necessary TO Draw a
New Bill.

The purpose Of the proposed Revenue
Act is not to find new subjects of taxa
ton, but to compel the payment OF
taxes on things already taxed" said a
member Of the Finance committee the
other day
To do this, the method of collecting
the tax has in many instances been
changed by the committee and it is
these changes that have aroused the
most violent opposition. Certain mill
men, bankers, bond holders, railroad
men, and others have come before the
committee TO protest against some OF
these changes.
The committee at its last meeting re-
quested that these objections to be
submitted in writing, and Mr.. James
II. Pou, attorney, has formulated the
objections as follows and typewriter
copies were yesterday distributed
among members of the House, where
the bill is now pending:
SUGGESTIONS RELATIVE TO THE
REVENUE ACT
First: Section and are veXatioUs;
will embarrass the business OF this
State very much; and Will make it to
the interest of towns and corporations
to borrow money outside OF the State;
will be easy of evasion: viii yield the
State but tritiing revenue; and Will
restrict and embarrass business no lit
tie. These sections had both best be
omitted.
Second: Section OF the bill re-
quires all corporations, domestic and
foreign, to return their capital stock
for taxation, and section 10 says that
foreign corporations shall not be eX-
empt from taxation at their real value,
as to amy property they have have
situate in this State. If both these
sections remain, foreign corporations
must pay tax upon their capital stock,
and also upon all the property they
have in this State. This manifestly Was
an oversight of the committee, and no
doubt will be changed as soon as atten
ton is called to it. This conflict can
be remedicd by making section apply
only TO domestic corporations, and let
ting section 10 tax all property in this
State belonging to foreign corporations.
Probably there will be no objection to
this change. This change can be made
by striking out all after the word State
in line 8 down to and including the
word manner at the end of the 18th line.
Third In the same section questions
8, 10 and IL should be omitted These
questions require a corporation TO dis
close its affairs to such an extent thai
it will be injured thereby While the
remaining questions Will elicit all tn=
information necessary in arriving at the
full value of the property. Neither the
Legislature nor the Finance committee
desire 10 ask such questions Of corpor-
atoms as would be Il restriction upon
their business, or which would force
them to disclose the secrets of their
trade to their competitors. Yet these
questions have that effect, and it is
hoped that the Legislature
will not embarraSS the manufacturing
interest by insisting upon these ques-
lions. This information, if forced from
our manufacturers will be useful to
their competitors both in and out o.
this State. and will serve no good pur-
pose.
Fourth: The Inheritance tax, section
Is down to section 30 is a novelty in
this state. 1t is predicted that it will
prove very unpopular in this STATE if
is respectfully suggested that it be
modified in number of respects: First
requests to benevolent, religious and
charitable objects should be exempt
from this tax. The United States al
ready taxes inheritance under the War
Revenue bill, and if the States levies
Il tax u the counties levy n tax at the
maximum more than half The bequest
D II
This species of philanthropy ought to
be encouraged, and it is hoped that the
bill will be so changed that man may
give to these worthy objects without
being subject to tax.
Fifth, The license, franchise and
income taxes levied by this bill are the
heaviest taxes of that character ever
levied by a revenue act in North Caro-
lima. The Justification fer this great
increase is that the needs OF the State
Government have increased so rapidly
of late that higher taxes must be levied.
If this contention is we'll founded, and
these high taxes are necessary to help
out the State Government, il is re-
spectfully suggested that the law pro-
vide that upon these subjects, where
upon the State taxes have been so
greatly increased, neither the counties
nor municipalities shall be permitted to
levy any additional fax. There is no
that the counties have not
sufficient revenue: the complaint is that
the State needs this money for a3ylums,
old soldiers, etc, therefore let the State
take the entire franchise, license ana
income taxes and provide that no addi-
ticnal tax upon these subjects shall be
levied.
Sixth: The income tax is exceeding
ly heavy, 1t far exceeds for State pur
poses alone. the income tax heretofore
levied by the State and by the
counties combined. 1t is respectfully
that flat income tax of one
and one half per cent upon the excess
over the exemption believed"
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