The Detroit times., 1911-01-05

counties ana primary assessment dis,
ltricls with cumbersome and unequal
Republication and expensive aSenSitp tvf
lcoliccting. return. handling OF delin :
quencies, etc. The states ! reler TO
have effected complete severance Dc /.
tween the systems OF state and local
taxation TO the very decided advantage
OF both. and the results In most IN
! stances have been brought about by
the gradual increase of the revenue
realized by these states through vari-
Gus forms OF specific taxation.
l have already referred 10 the fhct
that specific taxes applied To any new
subject OF taxation may now go into
the general fund. and, 10 the extent
| tina the totals OF such taxes are in
creased. the less will be the state tax
( that needs 20 be taxed under the gen
I eral law
/ A a tentative proposition for your
examination and consideration, | would
suggest the advisability or possibility
Of imposing general corporate income
I tax 10 be- levied against all corpora
lions Of the state, except railroad and
/ other public service corporations taxed
al valorem y average rate. The
taxes thus imposed with other spCClnc
taxes that might properly go into the
general fund | believe would nearly or
even fully meet all legitimate state
needs and obViate the necessity OF any
further resort 10 general taxation for
state purposes.
Please fully understand my PROPOSE
ton. IL Is that this proposed corporate
Income tax. in most respects To be
analogous 10 the federal corporate in
come tax now IN successful operation,
shall bear equally o. all industrial cor
porations. mining. manufacturing. etc.
in proportion 10 their income, net or
gross. as might be determined. II does
not involve Increased taxation upon
the tax thus imposed shall be In lieu or
state taxes levied under the general
state taxation, except through this spe-
cine income taN.--It would involve no
derangement or the general tax system
for the reason that the property OF
these corporations would still be held
subject. under the general law. to local
taxation.
II / have been successful in making
clear the proposition | have in MIND,
and n my proposal could be- put into
substantive law. / belirvr a desirable
Improvement IN taxation conditions In
reflect the highest credit upon the
Legislature that could bring about such
betterment. ! therefore recommend the
matter to your especial careful inves-
tigation and consideration.
Taxation Of Mortgages.
The present law for the taxation OF
mortgages II failure. Although il
may he right in theory il cannot e
reasonably enforced. The yield from
~ IL Disappointing. IL amounts prac-
tcally 20 double taxation and places a
premium upon Ctrcumvention, conceal
ment and other forms OF dishonesty.
The Michi gan law is the same. in gen
eral effect varying only in detail. as
the mortgage tax laws of all except
thirteen OF the other states.
The exceptions are as follows: In
Colorado, Idaho and Washington. mort
cages are not taxable. in California.
Connecticut i've counties in New Jer-
seN, Massachusetts and Wisconsin,
mortgages are assessed TO the mortga-
gee and the mortgagor is allowed 10
deduct corresponding amount from
the value Of the land
In Pennsylvania there is tax OF
touf mails Tor state purposes only
mortgages are not subject to local tax
alton
New York, Minnesota, Alabama and
Virginia have recording tax. that OF
New York and Minnesota being so cents
on each hundred dollars OF the mort
gage in lieu Of all other taxes 10 he
paid when the mortgage is offered for
record. There is not a single state
using the majority. or al valoren. sys-
tenn that is satisfied with the results
obtained. Many OF them are consider
treating MORTGAGES for taxation, and
many OF them would change if their
constitutions permitted.
The theory of our law and the evil
dent desire OF our legislators is to
reach all classes of property for taxa
lion; the funds OF the money loaner as
well as the property represented by
lands and other tangible property ac-
ceSstble FOR taxation. The result is en-
tr"lN different from that desired. In
stead Of the money loaner the Dor
double taxation.
After all. the whole question does not
resolve Itself into a method by which
the greatest amount of tax money can
ne collected. II Ia not all question OF
r. yenue. III II Were there might not BE-
sufficient reason FOR eSemptlng any
class OF mortgaEes-those given by
churches, schools, hospitals and chart
table institutions. II is more "a qIes-
ton OF right and equity 1t is not
right or equitable to tax property
twice. ~ is not eXpedient or wise 10
drive money from the state which is
needed for its development. The enact
mcnt or laws which cannot be enforced
Is poor legislation, without considering
the effect on the morals OF "A people
by perpetuating laws which are broken
and evadcd with ComplaCency.
! have no hesitation in recommending
the mortgage registry system of taxa
ton as greatly superior to the law
now on our statute books. With such
law no reason remains for eXempting
mortgages held by banks, trust com
pantes, and building and loan associa-
tiOnS from its provisions Were they
cause Tor and a means OF evading the
Law. II is believed that when time is
given such law TO become fully ef-
fective greater amount OF revenue
VIII b. secured To the state than under
the present law. and the great army OF
borrowers III be enabled to secure the
needed loans at materially reduced
interest charge.
Hazard of Industrial Accidents
Those laws in michigan which have
to do with the fellow servant. assump-
tion OF risk. and contributory negli-
gence phases OF the rights OF the work
ing classes, so-callcd, are anaChronisms
and make for heartless and cruel in
justice. They call for immediate cor
recttOn. There is no need OF entering
upon an argument here TO prove COZ
ditions that are admitted by all fair
people. | nave no particular form OF
law To suggest at this time beyond the
idea that the general viewpoint should
he taken that the working person does
not alone work for his immediate en-
ploScr, but indirectly labOTs for and 10
compensated by all OF those who usc
tho product Of TIE labor involved. In
the broadcast sense the employer is the
agent Of the public for the supply OF
SuCh necessities as are dema nded and
IN the manufacture OF which he may
De particularly engaged. The father
VINO sends his son to an employment in
winch there is always risk to life andJ
limb does not desert mis- son III misfOr-
tune comes In the form OF accident or
dlStdSr unless ne is an unnatural
parent Nor should tho state neglect
or desert It's children. younG or old In
the cost of the product Of labor should
be figured the hazard OF labor In this
way tho distribution OF indemnity
would Doe widest. fdirest and easiest.
~ All successful manufacturing there
u wear and tear account. Worn out
ana pbSol"t" machinery becomes junk
and Is thrown out at tho expense Of the
product u has been used in connection
VITA WI tlc IL may toe blunt ana in
elegant to Use the phrase. human
Junk, there Is no other expression that
htS the case 80 we'll Business should
pay for human junk just a. IL does for
not be unfairly placed on the employer.
Probably the suIvSt way OF bringing