The Marion daily mirror. (Marion, Ohio) 1892-1912, 1908-01-14

THE MARI(
ent situation lii this state. Every.
where there seems to be growing
opinion that the legislature ought to
have q freer hand in establishing n
system CT taxation. There are Soinc
who believe that no restrictions what
general assembly: that constitution
passed more than half a century ago
ought not TO be permitted to interposs
ment of public thought, and the chang
ed conditions evolved from the coni.
pIex IN diness enterprises of modern
uplpSs that the interests of all classes
OF the pe6pie are Safe In tho shan1s
of chosen representatives commits.
stoned to conserve and NEetect. those
interests. and that no risk. will be en-
benship In trusting the legislature to
devise just and equitable means OF
raising public revenues. There are
others who feel that whife the pres
ent constitutional limitations undoubt'
edly prevent much-needed changes in
the laws. yet that no constitutional
amendment should. or need, go fur
ther. than to so enlarge the powers
of the, general assembly as to enable
~ w NVtACSt Vic oUNClhO ONifo hiO'e
earnestly complained of.
After canvass of both these views
we have framed form of amendment
which, in our judgment, Is not only
best suited to the present needs OF
the state but will meet all proper re-
Quirements of the future and. at the
same time, guard against the dangers
OF arbitrary or inequitable legislation.
Form of Amendment Suggested.
Article XII, Section 2. The oener-
al Assembly shall have power to es.
tsblish and maintain an equitable.
system for raising state and local rev,
enue. II may classify the subjects Of
taxation 90 FAR as their differences
Justify the Same in order to secure a,
just return from, each. All taxes and
other charges shall be imposed for
public purposes only and shall be just
to each subject. The power Of taxa.
tion shall never be surrendered, sus.
pended or contracted away.
Bonds of the state of Ohio bonds
Of any city, village. hamlet, county or
township in this state and bonds Is.
sued in behalf OF the public schools
OF Ohio and the means of instruction
III COnuCCllOu tucTcWllH,
grounds. public school houses, houses
used exclusively for public worship,
institutions of purely public charity,
public property used exclusively for
any public purpose, and personal prop
erty, to an amount not exceeding in
value $500, for each individual, may,
by general laws, be exempted from
taxation; but all such laws shall be
subject to alteration or repeal and
h. oil <,f oil ~ So toI
shall. from time to time, be ascertain.
ed and published as may be directed
by law.
All taxes and exemptions In force
when this amendment Is adopted shall
remain In force, in the same manner
and to the same extent, unless and
until otherwise directed by statute.
The words in black face type
above designate the new matter. The
exemptions are not changed except
that as to public bonds such exemp-
tiOn Is permissive instead of manda-
tory. This was necessary In order Il,
make harmonious and consistent the
plan Of reposing broader powers of
taxation in the general assembly. The
provisions as to brrying grounds,
schools, churches, public property, in
stitutions of public charity and all
other exemptions are not changed In
any particl lar.
1t will be seen that this proposed
amendment does not require classi-
fication as did the amendment submit
ted in 1903. 1t merely authorizes such
classification. II does not permit any
and all classihcations. as did the
are fairly warranted by the differ
ences in subjects of taxation in order
to secure a just return from each sub.
ject.
1t will be seen further from the con
GLIDING sentence OF the amendment
that all tax or exemption laws now In
force shall remain In operation until
changed by the legislature. This was
added out OF abundant precauton in
order that. in fairness to all taxpayers
as well as to the state, no doubt could
be raised as to the status or validity
of existing laws.
Under this amendment the general
assembly may, we believe, correct the
wrongs that have developed in tae
present tax system of Ohio. II may
provide method for taxing moneys,
credits. stocks and bonds that will
bring them out OF hiding
The general assembly will be free
to deal with corporation taxes In any
manner that promises the best results,
both to the corporation and the state.
1t will be able to protect the corpora
tons from multiplicity of tax laws,
such as are now in operation, and
evolve instead one. definite and easily
computed charge for each class OF cor.
pOrations, which shall be imposed in
lieu of all other taxes, state or local.
AS to public service corporations IN
particular, 1t may of course, extend
the Nichols law without an amend.
mept OF the constitution: but after
such amendment the legislature may
well determine to adopt the more mod.
ern and generally approved method OF
taxing such corporations by a percent.
age OF their gross receipts, substitut.
ing this for all other taxes, either upon
property or privilege.
Such taxi is now most universally
accepted as preferable to any method
of property valuations. In a recent
and comprehensive study of this sUte
ject, as found in the reports OF the
Ontario commission OF 1905. and the
California commission of 1906, tAe
gross earnings tax Is commended as
The true method of taxing public ser.
vice corporations or conrse, such a
tax upon gross receipts should be SO
devised as to bear fair relation to
actual earnings and should be large
enough to secure sufficient return
from the corporatio affected to sup
plant all other state or local charges
,,pn, thnp,, rrhto r,atbrA lcap a., n Io.t