The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-06-01
THE GaoYrH on rAxrs.

The true measure Of statesmanship
is the ability with which the question
OF taxation is dealt. That the power
to tax is the power TO destroy is as
true now as Il was when the great eco
nomic truth was first uttered. We Of
Alabama have not yet wisely settled
the question of taxation and 1t would
be futile TO say that we had. It needs
no prophetic mind to see that one of
the great issues Of the future in Ala
bama will be the readjustment of its
taxation system.
Alabama has been unwiseIy extrava-
giant. The State has spent more than
1t had and 1t has spent more than II
should have spent. Many worthy OBJ
jects OF the States care have receive
ed more than the State was able to
give. 1t had been better for us, IL we
had held stoutiy to that simple and
ancient Democratic doctrine OF rails
ing only enough money to pay the ex-
penses of government economically adj
ministered.
But we have proceeded upon the as
sumption that the chief function of
government was to spend money and
raise more money by taxation. Our
taxes, direct and indirect. on property,
on franchises and on business large
and small, are based upon the prin-
ciple Of collecting as much as the bust
ness or property win bear without con-
fscation. In a free government we
have almost come to the old monarch
cal ideal in which the citizen was an
asset of the government. to which his
chief duty was the payment Of taxes.
A protest against existing conditions.
affecting seriously as they do, the well
fare OF the Insurance business is con-
tanned In the report of Insurance Com
missioner Frank N. Julian and Deputy
Commissioner A. C. Sexton. Because
number of important fire and life In
surance companies have been forced
out of Alabama by unjust taxation. a
timely note OF warning Is sounded.
The State collects from the fire COM
panies one and one-haIf per cent Of
the premiums collected within the
State. From life insurance companies
two per cent. is required. This Is IT.
self sufficiently heavy. but 1t Is under
stood that the companies would be will
ling to pay this. IL the many towns and
municipalities, lead on by the example
Of the State, were not enforcing license
taxes equally high. These taxes, in
the various Alabama towns run from
a few dollars to- four hundred dollars
year. The central fact here should
be appreciated by the people of Ala
bama and that Is that they pay this
tax--it may be indirectly, but new
ertheless. certainly. they pay the tax
Nor is that all. Many of the smaller
companies have been forced out of
the State, the report declares and this
ia believable. The larger companies
may stay by raising their premiums
to meet the heavy taxation. and limit
the insurance opportunities in Ala
bama.
The wise suggestion is made in the
report that a normal fiat rate plus a
percentage be the rule, for the towns
and cities. This would certainly be
equitable. We are certain to see the
spectacle OF the insurance companies
before the Legislature. begging for pro-
lection against municipal taxation.
But the insurance companies form
only one class of sufferers from our re-
cent hysteris OF extravaganza. In one
way or another taxes have been stead
lily lifted, until throughout Alabama
the cry is being raised that a penalty
is being put on industry and thrift.
1t would appear that the time has coma
when a man is punished for accumu-
lating property.
The older ideal was better