The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1911-01-06

Germ himself about the banks III lmS
there. There is such a thing a. inc.-
dence az taxation. which in comm,
parlance merely means shOulderinS me
has 10 pay a high rate Of taxation II
gets il back from the borrower. l. that
borrower is a retail merchant he gets
IL back from his customer. II tAr Dor
ROVER Is the owner OF real estate VINO II
putting money into houses. he gets II
back from his tenants. who may b. poor
men. Ia the end. the tax will ID" b1rn'
by somebody else than the bank. The
bank viii continue 10 earn dividends 10Y
its stock holders.
But ! do not mean that too heavy.
tax on 4 bank has not an unfaLorab!e
effect. The unfavorable effect Of ii IS
upon the community. however. a
whole. Rather than stand zoo heavy "
load of taxation the banks will reduce
their capital and surplus. many o.
them have done in Kentucky. Under the
law OF this State. thc amount that can
be loaned 10y a bank IN amy one indiv!d-
ual or firm or corporation is limited Ia
Il fixed percentage of the capital ana
surplus uf that bank. The result there
Tore. az reducin" The capital and surplus
of banks is to reduce the amount OF
credit that can bc given and to restrict
the banking facilities of nur large mer-
camille and manufacturing establish
ments. This has gone :" far that there
iS no, Il large establishment i'm the State
to-day that can procure from its local
banks = sufficient line of credit 10 carry
on lis enterprise. Nor is there in Ken
lucky today on account of the heavy
tax We put on capital and banking de-
posts single institution or any group
Of institutions strong enough To float
really big financial enterprise.
A FsrsicaI Result.
Contrast with this the fact that for
1910 Their" We're listed in the State Of
kcn!urky for taxation bonds to the
amount of only N.I1:316. on; Of a total
assessment, Of $'2>.2715.c22---nr less than
SOW .sNaT IN II Al n
bonds the amount listed of stocks AMI
money ana they all amount To less than
10 per cent Of the total. and without
mortgage notes (Which cant escape -
less Than ; per cent of the total. This
is absurd. but il is true. No man will
presume 10 say that this * more than
an infinii"sinlal part of he bonds ac-
iually owned in This State subject TO TAX
alton under he Stat" laws as they
stand. or this mea"rc am0uut nearly
onc-half wLs listed in jefferson County.
How 1t Could Be Better Done.
There are ways Of deriving revenue
cape i'm Kentucky under our presen- sys-
TEN. L. ME illustrate. w" attempt. as
l nav" shown. To tax savings deposits
Welding three ncr cen: by the same
method ana IT the sam" rate that we use
in taking any other form Of properly
which pays fifteen or twenty ar twenty
iiN" per cent ana which i fixed ANA ViSi
Bile in its character. The consequence j.
th2t practically n" savings deposits are
given i'm for taxation. In the New Eng
land states savings deposits are taxed
AZ rate VARYING from some thirty t"
forty cents. This lax IS paid by the
bank. aud the bank adjusts il with the
owner of the savings deposit. The State
Is certain Of the revenue. since ii i
content Ia take a reasonable percentage
If the income derived rom the deposit.
and ii has no difficulty IN collecting IT,
II is not forced To attcmpt 10 find this
properly in The hands "f the individual
holder.
Can Be Brought Out
1t may h~ urged that lowering the rate
on prnprrty nf this character Will not
bring IL out for taxation. We can only
| In this RESPECT Human nature is pretty
much 'hc same everywhere. Most men
would rather he homes! about their as
scssmcnis if they can ~ =" without suf-
ferins c"nliScitinn. The change of rate
on this class of property has multiplied
:hc rcvcuu" from il many fold i'm The
, Stat" of Maryland within recent years.
and made poS-ill,. NJ. reelection Of the
Stat" tax rat" To- Il cents.
Our Remedy in Kentucky.
But We are not "a liberty in the STATE
Of Kentucky Ia adapt any ct TN" meth
DDS that hav" afforded relief To other
upon orr Legislature hv the constitution
Of the State. W.. are lied hand ami foo;
10 the general properly TAX system.
,lu not believe i'm criticiSing without
q
. that there should II" ANY sudden ana
I radical change of the revenue system
Immediately upon the adoption Of the
: DroIuS,-I amendment 10 the Constitution
J az IN" State. II tn" Legislature proposes
1 the amendment t. the constitution ana
! the people ratify il at the polls. til" re-
suit NJ I" that Joint Will Ir' merely thH
! the Legislature l. put in u position
whcr" il can begin the work 81 revising
/ our tax system. IN" amendment does
| not mean "muS;." II means may"
/. &. I 81.
| slowly The government must go on.
Revenue mus; be- had. Revision must
/ be- cautious. II should preferably be az
: sisted by a tax commission gath herring in
! formation for the Legislature Ia ac;
I upon. II should be- along Il consiStrn;
] line designed L. End in system under
! which IN" sources OF revenue. shall j
! classified. certain property being taxed
I for State purposes. ANA for State pur-
4 poses only: other property for Municipal
/ purposes and for Municipal purposes
! only: SIN her property for Count
/ purposes ant for County purposes only
! all property bcin" faxed az some rate for
! some purpose and for one purpose only.
! that rate being as fairly ~ possible al.
T crty pf thai class and collected by the
/ method that will yield the largest re-
/ turns.
That is the proposition in nutshell
/ II j. not theory. II * being successfully
done. Fourteen States have now -
shaped th.ir constitutions that they may
| from tn old met nod t. the new.
! work would hr IN The hands Of H.
/ chosen rcprr~' litativeS of the people.
The Goal To Ee Reached
Th, formulating Of the new system
! ana the working cut Of its details Shnu
/ be done most cautiously. but ALWAYS
with a view Ia finally reaching Il poiut
! where the Stat" would raise its entire
. revenues from one class of property
! the Counties from another class ur
! property. and the cities from still an
/ other. l'ndc: such "A system. when com
! plrtrly i'm effect. farming lands wouiG
/ he taxed only for local purposes. They
/ should not Day crut 81 tax for Sta,
/ PURPOSES No Kind Of property taxed foi
| State purposes should De taxed for IocaI
PURPOSES ana none taxed for County 81
I City purposes should DE taxed for Stat,
| purposes.
/ BY this separation Of sources Of revenue
W. avoid that Pliag up Of one tax rat,
on another which makes TIN. burden :,
| heavy in kentucky. and 10y this ella SSify.
ing of property according To its capacity
/ for standing - tax propnrtiOnatr To the
income il yields. We remove the incen.