The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1911-03-17

o.
to-day that can procure from rs local
banks a sufficient line OF credit TO carry |
on Its enterprise, Nor Is there In Ken
lucky today on account OF the hcaNN
tax We put on capital aud hankinE de
ppsits a single institution or any group
of Institutions strong enough to iioat
really big financial enterprise.
A Farsieal Result.
Contrast with this the fact that Tor
1910 there were listed in the State Of
Kentucky Tor taxation bonds 10 the
amount OF only Nsll3.Iis, out OF tclal
assessment % 81, "a, 022---or less than
sereu-tcuths Of one per cent, Ma 70
bonds the amour; listed Of stocks and
money and they an amount 20 less than
10 per cent OF the total and without
mortgage notes (which can't escaped 20 /
less than per cent OF the total This
presume 90 say that this Is mere than
an iniiuitesimal part Of the bonds ar
tualy owned IN this State subject TO tax
alton under the State laws as they
stand, OF this medgrp amount nearly
ore-half was listed IN jefferson County
The tendency Is 20 give In less and less
" this Kind 81 property, You can nos
expect men % give q in whom they know
that TO do 50 Is to surrender anywhere
from 20 10 20 per cent OF the Income,
think it may be safely stated that nearly
an Of this FIVE and three-quarter milton
dollars Of bonds listed Tor taxation In
Kentucky belonged 20 dependent people
and represents money lett theta by hus-
bands and fathers who thought In this
way 10 provide for the future Of their
families. The laws Of the state do not
permit the investment " FUNDS In any
thing but the most stable OF securities,
You can not buy really sound standard
bonds that viii pay moro than per cent
en- the Investment and vet the very law
which saws the trust funds must be In
vested IN this class OF securities, IN the
same breath says that " the 3 per cent
yield on the Investment, the state, coun-
ties and municipalities may take more
than one-half in taxes
How Il Could Be Better Done.
There are ways OF deriving revenue
from these classes Of property that cs-
cspe IN Kentucky under our present sys-
tenn Let me Illustrate. We attempt, as
! have shown, to tax savings deposits
yielding three per cent by the same
method aud at the same rate that we use
IN taking any other form 0t property
which paws fifteen or twenty or twenty
five per cent and which Il hNrd and Vlsl-
BILE In lis character The consequence Is
that practically no savings deposits are
given IN for taxation. IN the New ENG
land States savings deposits are taxed
at rates varying from sulue thirty 20
forty cents This tax Is paid by the
bank. and the bank adjusts Il with the
owner Of the savings deposit The State
content To take reasonable percentage
0f the income derived from the deposit
and II has no ditCEHy IN collecting a.
II Is not forced TO attempt TO md this
property In the hands OF the individual
holder
This. Of course. docs not cover the
bonds OF corporations outside 81 the
state, but the same wise policy % making
the rate lower removes the temptation
to conceal this class ot property ard the
state 81 PENNSYLVANIA derives from such
property more than &uD.UA Of revenue
| q year. or course, Pennsylvania Il an
! enormously wealthy state, But Il has
| gotten wealthy partly because Of It's en-
| CouraEing all forms Of Industry by wise
| tax laws In natural resources II has no
| advantage over the state Of Kentucky.
Can Be Brought out.
It may he urged that lowering the rate
/ on property Of this character will not
| bring II out for taxation. We can only
| point to the experience OF other States
| in this respect. Human nature Is pretty
| much the same everywhere Most men
| would rather be honest about their as
sessmenis II they can be 20 without sur
| fering COuhsCatiOn. The change OF rate
on this class Of property has multiplied
the revenue from II many fold In the
| State OF Maryland within recent years
and made possible the reduction OF th'
State tax rate TO IS cents,
Our Remedy In Kentucky.
Put we are not at liberty IN the Stat
! Of Kentucky to adopt any Of the meth
DDS that have afforded relief to otheI
States, because Of The restriction Pu
upon bur Legislature BY ne constitution t
Of the State We are lied hand and foe
TO the general property tax system.
| do not believe In criticislng withou
proposing a remedy II Is not propose
that there should be any sudden ant
| radical change Of the revenue system
TINS fEt hs4 I1W of
| proposed amendment 10 the ConHtlutlai
OF the state. II the Legislature propose
the amendment "a the constitution an,
the people raufy Il al the polls, the re
suit up TO that point will be merely tina
the Legislature Is put N a position
where 4 can begin the work o. revising
our tax system. The amendment doe
not mean must" II means may"
II r. wise the Legislature will rCyls
slowly. The government must 80 on
Revenue must be had. Revision mus
be cautions. II should preferably be rs
| sisted by a tax commission gathering In
| formation for the Legislature 10 nc
| upon II should be along a tbnslsteu
N line designed to end In a system undo
which the sources Of revenue shall b
CLASSIFIED. certain prOpertg being take
for state purposes, and for stat pur
( poses only: other property Tor Municipa
d purposes and for Municipal purpose
Al only: still other property for Count
purposes and for County purposes only,
. an property being taxed at some rate 70
! some purpose and fer one purpose only
b. that rate being as fairly as possible Al
o ipgted to the normal income from PROF
. erty Of that class and collected by th
HI nsthOd that Will yield the laIgsst n
That Is the proposition In nutshell
Il IL not theory. II Il being successful
! done Fourteen Mates have now
nj shaped their constitutions that they ma
A.. nd nj y al
:, from the old method to the new, q
~ work would he IN the hands Of Il
!, chosen representatives OF the people
y The Goal To Be Reached.
y The formulating OF the new syste
u and the working out OF It's details shou
l. be- done most cautiously, but alwa
II with a view to finally reaching pol
l. where the State would raise Its emit
X revenues from one class OF propert
Id the Counties from another class
n. property, and the Cities from sun a
0l other. Under such system, when col
iR pIetely in effect. farming lands wou
n be taxed only for local purposes, Tn
of should not pay a cent OF tax for Sta
re purposes. No kind OF property taxed I
nj state purposes should be taxed for loo
I'd harnesses. and none taxed for County
de city purposes should be taxed for Sta
he By this separation OF sources OF reven,
Is, we avoid that piling up OF one tax RI
anl on another which makes the burden
r. heavy in Kentucky, and by this classii
at ing OF property according TO it, capac
ct. for standing tax proporuonate to
income IL yields we remove the inc,
. tive which our present system furnish
We 10 differentiation and evasion and p
a jury. a.,
81 Il am not pointing out an Ideal or |
10 tried system. THIS system has been
IN lowed and is being followed successful
his elsewhere There Il no reason why
Op should not prove equally successful
CT Kentucky. II holds out the hope OF
or lief. .....,
he trust have made It plain that
nh ,p.,p