The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1907-12-26
DOUBLE TAXATION
The Chic Farmer Discusses the
Present constitutional
Amendment.

In its Issue of September 2S, the
"Ohio Farmer has a comprehensive
discussion of the provisions of Sec
ton Q, article 12, OF the Ohio Consti-
tuition. which reads:
Laws shall be passed. taxing by .
Uniform rule, all moneys, credits. In
vestments in bonds. Joint stock com-
panles, or otherwise; also. all real and
personal property, according to its
true value in money" etc., etc.
The ohio Farmer" in discussing
this section Of the constitution, op-
poses the argument of one Of its cor
respondents, Mr.. T. n. Smith, past
master Of the Ohio State Grange. The
argument is so well carried that IL 10
printed in full herewith:
Notice the semicolon after other
wise w. e. Cushing, a Cleve : nd
attorney, argued before the State Tax
Commission that this semicolon sop
arates the two clauses In q very i'm
~
tenable view, and. therefore, tnat all
values mentioned before the semi
colon are to be taxed "by a uniform
rule" that Is, by rule or method uni
formly applicable to these alone,
while the words ''also all real and per.
sonal property according to its value
IN money" apply Simply to "ail real
dentlv, "all real and personal proper.
ty" means visible and tangible prop
erty as distinguished from invisible,
Intangible property described in the
former clause. The former Is to be
taxed by uniform rule;" the latter
according to Its true value In mon-
ey." Note tnat II does not say "at"
Its true valre. etc. as Mr.. Smith in
correctly quotes IL several ttAIes. This
looks as II the trainers of the consti-
tuition expected a scaling down, az
at present, to the values at forced
sale, which MAKES no difference II IT,
Is general and uniform. Also. rule"
that Is uniform" for all notes, stocks.
bonds, etc, may mean a low percent
age, as now proposed, on this whole
class OF property (simply for it's pro
I hat stocks in railways, etc., represent
the value OF tie roadbeds, rolling
stock, stations and other actual, vfsi.
Die, tangible property, already taxed
rs such, and to tax the stocks held
by A, @ and G, also, would be double
taxation, which no one favors; while
to tax the bonds, would be to tax what
the railways owe, not what they own.
Second, that these evidences of quasi.
are invisible, Intangible |
and inevitably In the main escape, as
shown increasingly year by year for |
over half century. Therefore tax |
such visible, tangible property where |
L exists, in the hands OF Its directors
and managers; tax 1t, tax 1t once,
1ont try to tax the paper certificates |
Of stock In the hands of A, B and G, |
Tor II you succeed you will tax double,
and IL you fail Gas you will, for you
have done so for Sc years., you will |
simply repeat the folly of your fathers
md yourselves.
Still further. even IL we were to
,oncede (as we do not) that the
ramers OF the constitution intended
20 tax money. stocks. etc.. on the
same basis with tangible property. |
md that this may have been just,
hen, times have utterly changed. In
LS51, and for several years thereafter.
money brought G to 10 per cent inter.
'st per annrrl, and taxeg were about
per cent Now interest on safe loans
s about 31s 10 4 per cent and the rate
u taxation In many cities, the chief
-sCASy SChsehot 10 oI1 W Pjl Ctnt. |
70 tax money at par value. In such
ities would be unjust and therefore
impossible. 1t would be confiscation.
further, money is chiefly an instru.
nent or means OF exchange. When
\ and B swap" farms, there Is no
instrument of exchange and we tax
10Th farms as before, But II A. b, Q.
he the line, no matter how far, but
Ise $4,000 in bank bills, gold, or
.ank checks, as an instrument OF ex-
hange, why not continue to tax the
arms. the actual, tangible property.
s before and not try to tax the mere
nstrument Of exchange? II Ii feet
ng, evanescent. elusive, can not be
nake the fruitless EFFORT? Or, II A
ellis his farm and puts the money
nto the "a Wings bank at 3 to I per
ent, the bank at once puts It and
lany like sums from others. into |
ouses, lots, lands. actories-tangible
roperty, all of which is taxed once.
Why try. Tin vain) to tax II twice by
ayfng the mere instrument OF ex-
hange, worth nothing as money ex.
IN this point, however. see the fol- |
,wing paragraph:
But. you say, silver and gold have
n intrinsic or bullion value. Yea.
nd II made into silver or gold ware,
'atches, tewelry, ETC.. they become
ctual. tangible property and should
e taxed at the same percentage of
8 market value at which houses,
lnds, horses. machinery, etc, are
Ixed. or course q very small tax, ,
ny one-half, one-fourth or one-tenth
l per cent per annum, might be
lsced upon the average line Of de-
osits In savings banks. and collected
the banks. deducted by them from ,
le rate OF interest paid to depositors,
nd justified as reasonable license
% or amount paid for the protection
the bushes The problem is q com.
Heated one, of course. but we are
ore likely to solve II II we try to do
than II we stick to the outgrown
gislation inserted into the constitu-
on In 1851. and Insist that wisdom a
ed with the trainers OF that instru- :
ent.
STATE eoAeD DoEs NOT
EouALizE.