The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1907-12-26

pn IN ser',ce , .Sns,ges 80 .nat ~ may pc
service charge IN taken for taxes.
With this Information before them,
the pe e~ple ran determine which OF
two rolicies they will adopt---low SER
vice. charges aud no taxes; or high
serrice charges and correspondlnely
high. rate OF taxation. When gross
adopted as the sole basis OF taxation
for public service corporations, the
amount Of the tax can be determined
by mathematical rule. thus eliminat.
Ing TIE crude and unsatisfactory
the tax by jrdiciai discretion exer.
els ed by a multitude Of assessors, and
the tax will bear a recognizable rela.
tion to service charges.
Gross-earnings has the additional
advantage of being a growing basis
caly and Without frction tBe amount
OF the tax paid. This Is clearly shown
BY comparing the growth of the grand
d" Dlicate with the growth of the gross
ea nings OF public service corpora
tons used as basis for assessing the
ST te excise tax for ten years, from
assessed) to 1906, as follows:
|. Per CT,
Ircrease OF grand duplicate. -. 1884
Ir 'rease of gross earnings. -. 1889
This shows how great a gain would
hf We been made for the people IL, In
1896. instead of attempting to secure
increased revenue from public service
CO operations by the imposition of an
ey else tax on gross earnings OF one.
per cent In 1902, an investigation had
been made to determine what per
cent on gross earnings was being paid
'or taxation, state and local, and
az oping that per cent for gross
% tax wd in Hey bs1s OF all sSt,sG SthHr taxa
RI Dillv increasing for a slow growing
ba sis for taxation. II would also have
re moved all cause OF friction between
| pl bic service corporations and tax
az les.ors, all opportunity for bribery
| or ccrrurtion
A corresponding gain can be made
with still greater collateral benefits
by substituting for the state general
| property tax state tax on the gross
income from taxation Of all local tax
ing bodies in the state. The growth
Of tie grsnd duplicate. from 1896 to
OF tHyes collected for local purposes
for the same period was 55 per cent
Accounting For Proceeds OF Taxation.
Any discussion Of the subject of tax
ton witA out considering the question
Of c proper accounting for the pro-
Gees e taxation is illogical and un-
p oftable. A proper accounting sys.
t. N is fundamentally necessary to
81 ow: % The amount of revenue
de ived from each classified source
ard the relation of such revenue to
10 = basis oi taxation, whether valua-
tian or gro-s earnings or any other
basis that may be adopted FOR any
specific class. This can not be done
VII ont a constitutional provision per-
llitting ciassi cation OF subjects for
taxation and. the taxation OF each
class Of subjects within the jnrislic.
Ion OF a taxing body, by Uniform
rule. on a basis and at a rate that
viii be Just to the subject taxed. t2J
A correct accounting system will show
in comparative statement, year by
year. the total amount. expended by
the state and local taxing bodies for
each classified purpose. This will en-.
where economic efficiency has been
established, OF. Is lacking. in the a.
ninistration of their public business.
Il Is infinitely better public policy to
Increase the efficiency of the expendi
ture OF money raised by taxation than
4 fron, Is to to increase ,Dr tie amount taken
cient expenditures. Wavs and means
for making the taxpayers dollar 20 |
as far as possible in satisfying public |
demands should be studied as per-
sistently rs methods are studied for |
taking from taxpayers the largest pos |
possible protest. which Is the true |
r Gaming OF the demand that the lary. |
est possible revenue should be OBJ |
tained from special sources.
Remedies For Taxation Evils.
ID An amendment to the consti. |
tuition that will permit classification |
or the subjects for taxation; the adop. |
tion OF basis for the taxation of each |
class that will be best suited to its
Of a tax rate that will be lust to the
subject taxed and uniform throughout |
the Jurisdiction OF the authority levy
ing the tag.
(2) The substitution for the gen.
eral property tax for state purposes
oi a tax upon the gross incomes Of al
local taxing bodies. thus rendering a
state board of equalization wholly un-
necessary and placing the pressure Of
state taxation upon spending instead
OF valuation. which will induce econ
omy In local expenses, instead of un-
der valuations by local assessors ana,
influence on state expendi.
lures through direct responsibility TO
The people for the growth of state tax
auon. The same principle can be ap.
piled for county taxation upon the In.
come OF an local taxing bodies within
equalization of property values entire.
y unnecessary. This will limit the
necessity for equalization of properfy
values to the taxing bouies having
original Jurisdiction over valuation
Within this small area equalization OF
assessed values can be attempted
with best prospects of successful &C.
l3) The securing Of the equal anc