The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1907-11-18
UNJUST TAX PLAN
DECISION OF TAX
COMMISSIONERS

In discussing tax questions in Ken.
lucky and elsewhere. frequent refer
ence is made to the general property
tax" This is the Kind of system
Kentucky has in force II is the sys-
TEN that is in force in most of the
states.
Briefly. the general property tax is
uniform ad valorem tax levied upon
all classes OF property alike, regard
less of the nature. of the earning ca
pacity or of the tangible or intangible
character of the property. The taxing
authority of a state, for Instance, will
levy "a tax of so cents. This tax is to
fall upon every kind Of property alike.
Everything of value. whether real es-
tate. money in bank, notes, bonds,
mortgages. shares Of stock, live stock.
wagons. carriages, jewelry, furniture,
any sort OF personal property, or fran
chises of corporations is called prop
erty and must pay this tax. This Is
the general property tax The general
property tax is. therefore the levying
of uniform ad yalOrcm tax on all
property for all purposes.
Az distinct from this system is the
system Of classifying prof. ty. raising
state revenues from one I'd of prop
erty. county revenues from another
kind of property and city revenues
from still another kind. and also the
raising OF revenues by special taxes
Of various kinds The argument in
the tax world today is between these
two systems of raising the public rev
enuc.
The Kentucky system is the general
property tax Our constitution binds
us to the levy of a uniform ad valorem
lax on all property of every kind for
all purposes. II a piece of property
located in the city is taxed for one
purpose, It must be taxed for all. II
IL is property earning 6 per cent re-
turn TO it's owner, II must pay the
same tax as property earning 20 per
cent II it is kind that can be re-
moved or hidden II is taxed the same
as real cstate--if IL can be found. No
distinction. is made on any account
whatever; all property must pay the
same rate.
This sounds like a very fair system,
and in theory. 1t is fairness Itself. But
It's operation in the opinion of those
who have studied the question, not In
Kentucky only but in every state in
the Union. has not borne out the
promise made for it. The system has
been abandoned in Pennsylvania. Con-
necticut, Delaware. New Jersey, Wis.
consin. Oregon, and partially in num-
Der of other states. The rapid ten
dency of the states is to get away
from il. as impossible and impracti-
cable. Nearly every state that has a
tax commission has declared itself
very frankly on this question. A large
number of states have within the last
few years appointed tax commissions
to carefully study the methods of rails
ing public revenues and. almost in
variably, the reports of these commits
sions have denounced the general
property tax system the system that
we have in Kentucky. as being absurd,
impossible of enforcement and unjust
in its operations -
Denounced BY Supreme Court.
The supreme court of the United
States leads the way in denouncing
the system. In its opinion in the case
of the Pacific Express Co. vs.. Seibert.
the court said:
This court has repeatedly laid
down. the doctrine that diversity of
taxation. both with respect to the
amount imposed and the various spe-
cies of property selected either for
bearing its burdens or being exempt
from them, is not Inconsistent with
perfect uniformity and equality of tax
alton in the proper sense of those
terms; and thatsatsystem which i'm
poses the same taxhpon every species
of property. irrespective of its nature
or condition or class, will be destruc-
tive of the principle of uniformity and
equality in taxation and Of just
adaptation of property TO its burdens"
An Illinois tax commission has de-
clared that the Uniform ad valorem
general property tax, the system that
,,,o hove alec in Kentucky sis de-