The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-12-21
STATE TAX.

STATE TAX.
We think that it would be practicable to OBJ.
tam the revenue for the general State and pen
sion purposes from taxes incomes, franchises,
lnherltances, and such license as should be paid
into the State Treasury and thereby the bur-
Justly distributed. and we therefore recommend
that this be done.
The principle of income taxation was adopted
by our state in 1880, and in form of a tax
on incomes from st-bearing securities from
stock in corporations, and from salaries and fees
and 1t was then as it is now, and we suggest
it be made, tax levied for the purpose of State
revenue. The law seems to have been obeyed by
taxpayers, and the revenue from ii increased
from year to year. The Comptroller's report for
the fiscal year ending September 80, 1860, shows
that the income tax for that year STA, 07233,
out of the total State tax of $685. 1853. 10. APP
proximately, then, one-siXth OF the whole State
tax was derived from tax on incomes from these
sources. Since 1868, the law has yielded but lit
tie revenue-no incomes We're listed that We're
derived from property that was taxed, and thus
nearly all the incomes were excepted
II no ad Vaorem tax was levied for State pur-
poses all incomes could be taxed. We think that
section ), Article V, of the Constitution, means
that no tax can be levied on incomes when the
property from which the income is derived is
taxed for that purpose. The General Assembly
in levying the ad yalorem tax for each year,
specifies the purpose for which the tax is levied,
required by Article V, section Z, of the Con-
stitution. For example, the tax levied for this
year is tWenCy-one cents on the one nundreu
dollars value for general State purposes; four
cents on the one hundred dollars value for pen
sion purposes; and eighteen cents on the one
hundred dollars value for school purposes. If
no tax had been levied on property for general
State and pension purposes but tax had been
levied on property for school purposes the Gen
eral Assembly could levy a tax on the incomes
derived from property as we'll as all other IN
comes for general State and pension purposes.
We believe that tax of five per cent. on net
incomes of individuals and corporations alike,
subect to proper exemptions for subsistence,
would bring sufficient revenue to meet the usual
appropriations for State and pension purposes and
pay the deficit for the last two years. We have
no definite account OF incomes except OF such
as were listed last year, and OF net earnings OF
railroads in the State. Five per cent. OF 81 OO0,
600. which was about the amount of incomes
listed for the year 1901, would yield 100000,
against SIC, 600 from that source last year and
five per cent Of So 600 900, which is approximate
y the net earnings of railroads for the year end
ing June so, 1901. would yield 100000, against
about sl0s,000, which the railroads paid last
year for State purposes. Certainly incomes from
all other sources in the State ought to be more
than four times much as from these two
sources.
We have already referred to the income tax law
in force in 1860 The ComsToller's report for
that, year shows that tax OF four per cent. of
net interest received or accrued and due by
solvent debtors during the preceding year. yielded
SS4, 952. 25. An easy calculation will show that
there was in the State at that time S35 500, 100 of
interest bearing securities With all the increase
in population and wealth in the State, there has
never been so much solvent credits listed for
taxation since 1865. The amount of solvent
credits listed in 1000 in the State was S2 1853 056
and State tax was $i66 80, and that was an
increase over previous years In 1860 the amount
of interest received or accrued was discovered in
the same manner and by the same method that
solvent credits discovered in 1900, namely,
BY the declaration under oath of the taxpayer,
but the difference consisted in the rate. In 1860,
the rate was per cent, or "a out of every hun
- .,,{n fx-oHn Jrt1nH
the rate in effect was not less than 10 per cent,
| or SO out of every hundred received accrued
anywhere in the State, and in many places i'll the
| State 10 per cent, or $40 out OF every Sl00
of certain classes OF property, and 90 per cent,
| or $50, out of every 800 of other classes Of
properly. and the highest rate prevailed in places
| where most of this class of property is supposed
| to have its situs for taxation
| We here give the amount of tax paid on ac-
count OF solvent credits by four counties of the
| State in the years 1860 and 1900, respectively: