The Montgomery advertiser., 1909-07-27
straneIe This Peraiciops Tax.

Atlanta Journal.
The most dangerous measure pend
ing before the General Assembly, and
one of the most destructive ever intro
duced In that body, Is the license or
occupation tax on corporations en-
bodied In the general tax act, which
has already been reported fayorably
we FEEL sure that the revolutionary
character of this measure and the
gravity Of the situation 1t Is calculated
to produce. have not been iuliy real.
ICED by the conservative members OF
the House, otherwise they would sus-
pend consideration of every other pend
ing measure in order to stifie this
In the general tax act of 1907 there
was provision which served as an
entering wedge along this line, but
the taxes Imposed were 80 small In
ing. The act of two years ego pro-
vtded for q tax ranging from W on
corporations with q capital not exceed
ing $4,000 to a tax OF Si0o on nose
The provision in the pending general
tax act imposes a tax on corporations,
domestic and foreign. ranging from
40 on those eapitahzea a s ri oSS on an
corporations capitalized at more than
ThGs we see that the maximum tax
as applied to Individual schedules, the
increase ranges from 100 per cent on
the smallest to 500 'per cent on the
largest capitalization. ~
The provision as 1t applied TO 90.
mestic corporations would be bad
enough, but the most iniauitous TEA
furs OF all is that II is extended TO
apply to all foreign non-resident COT
tentative In Georgia. These non-resi-
dent corporat lions are compelled, under
the operation of this law, to pay these
excessive taxes on the tuil amount u
Much has been said during the past
two years about driving capital from
Georgia" but surely there was never
inevitably have that effect. II Geor-
Ria is to impose this tax upon the to-
tai capitalization of every corporation
having an agent or reprssenIatis Ven ~
other state In the Union from doing
the same thing? And what would pc
the aggregate effect II every state IN
the Union were to impose TINS sah a vRos
such agent within Its hordersI hoW
long could they stand UP under these
cumulative exactionsf
BUSINESS life Of the country 9 vast
majority Of the other states In the
United States do not seek 10 imposs
such pernicious burdens upon tne S COT
porations doing business in their linn
This fact places Georgia. therefore:
all the more in an evil emtnenee. ana
makes her conspicuous for hostility
conscious or unconscious. towards for
eiRn capital This hostility does not
represent the sentiment OF the gem
the terms Of this provision of the
general tax act are known and under
stood, the people will rise up In pro-
test against 1t. But the very sugges,
tfon OF such a measure goes abroad
to our INFINITE and enduring hurt.
we do not believe that Georgia, IN
the first place, is reduced TO sucn des-
perate extremities that 1t is necessary
Eia in amounts between 100 and 300
we are absolutely sure that. how
ever desperate may be the emergency,
the pending provision, as appnss
to foreign corporations. so far from
increasinG the public revenue. viii
have no other effect than to drive these
non resident corporations from the
State and we will be deprived of even
such revenue as they now contribute
uantiv to bring all corporations. for
eign and domestic, under proper regu-
Iafions and to prevent them from
imNosing unjust and discriminatory
burdens upon the people, but in the
very heat Of its tesvor, II never ever con con
oliiafed to drive capital from the state;
and such is the logical consequence or
lie dangerous measure now pending.
we have said before, and We repeat
Il now with all the earnestness OF our
nature, that the State should employ
averv lenitimata means to encourage
foreign capital to come to Georgia for
tnyesfment The opportunities are
great aud the vast majority of the peo-
BILE are sound and CONSERVATIVE IN their