Crittenden record-press. [volume] (Marion, Ky.) 1909-191?, 1911-01-26
TAX SYSTEM
NEEDS REVISION
Address of A. Y. Ford to the
Members Of Kentrcty
Press Association.
PRESENT MODE COSTS HEAVILY
Tax Revision Does Not Mean Exemp
ton. But Fair Apportionment on
All Kinds Of Property-lt
Means Uniformity.

Louisville.-The following is the ad-
dress of Mr.. A. y. Ford before the
Kentucky Press association at the
mid-winter gathering in Louisville
The tax system of a state deserves
careful consideration, because the
power to tax is the power TO destroy
and tax unwisely laid may easily
drain the life of a community or Kill
an industry. Approximately 100000
900 a year are taken from the pockets
OF the people of Kentucky for the sup
port of the state, county and munici-
pal governments. II is Incompetent
sible that a thing which means so
much in dollars and cents to the peo-
pie of the state should generally have
received such scant consideration. l.
Is difficult to understand why it should
have been so hard at any time to Sc.
cure from those charged with the
duty of making our laws a careful,
thorough and conscientious study O'
the methods by which these large rev.
-enues are raised. We have no specia
complaint TO make of the way in
which these revenues are spent.
There has been no considerable eX-
travagance in the expenditure of our
public funds. Ii Is therefore time tina,
We now stop 10 consider carefully
whether these large sums are raised
by the best possible methods, whether
they are raised in a way that distrib-
utes the burden fairly as between the
owners of vaiious kinds of property,
whether the FAX laws impose the least
burden consistent with the demand
for revenue and whether they so dis
tribute tho burden as 20 offer the least
possible hindrance 10 the development
of the state Where there is cOmpe-
tition between communities such as
necessarily exists under modern con-
ditiCns. an unwise system. laid with
out due consideration of the handicap
It may impose upon the community in
the sharp competition for new popula
ton. rev industries and new capital
may easily prove destructive Of pros
perity.
Revision Does Not Mean eysnr-tior
Tho movement for a revision Of the tax
system Of Kentucky is not a movement
In favor Of exemption 81 any kind of
property from taxation. know il ha3
been characterized in some quarters re-
Gently ~ an appeal for an exemption #
capitll from taxation There has re-
Gently appeared in he press of the state
an article from "a gentleman for whom
have the greatest respect which rcNea :
q total misunderstanding Of the spiri'
and purpose Of this movement In this
article il is declared that the attempt 10
revise the system Of taxation in Ken
lucky Is part ~ q general combination
Of capital 10 secure exemption from taN-
n4icr. I state deliherat ely, and with fun
consideration. ana having abundant on
portunity to know whereof speak. that
no advocate Of The proposed revision OF
the tax system of Kentucky has ever
suggested that any class Of proper,
should be exempted from taxation.
The purpose Of the movement for tax
revision is not 20 secure exemption for
any class OF property. on the contrary,
n Is for tn" purpose OF removing const-
tutional =, Strictious so that the les1sla-
ture may have power 50 10 vary the
method and The rate that millions Of do
lars of pr1nerty that now escape taxa
ton may - made 20 Yield revenue and
thus rcliev %" burden pu real estate.
Our prese. .vstcn has utterly f7uod in
this respect AFR nineteen Years Of
trial We dnd il lbs practically broken
revenue from stocks and bonds and other
property Of that intangible kind whlch
can easily be hidden.
Shall we merely keep on with the old
system that has failed. or shall We make
ourselves free % try methods that have
succeeded elsewhere I'm deriving large
revenue from this kind " property which
escapes in our state? ! make no appeal
for the tax dodger. I favor no exemption
OF any kind Of property 7 advocate a
system that will make every kind of
property bear a fair share ~ the burdens
rated according to it, capacity and col
iectcd by method fitted 20 its character.
Facts ard NOT Theories
Theoretically. under our present law.
no property Is exempt. Practically. un-
der our present law, millions upon mil
lions escape. Only about $4,000 of
bonds. for instance We're taxed i'm Ken
81
surdity. Let US address ourselves to tho
facts. Let Us face the conditions a : they
H~n--the laws Of economics and of human
as they are-and not As We think
,houd be.
The system Of taxation We have in
Kentuckv is what is known as the Cen
eral Property Tax system. II is a sys-
TEN which came into existence many
years ago when property existed in sim
pie form, when most that man had
would he In shape Of lands and houses
and live stock or stock Of goods. or
other things visible 70 the eye and easily
aSsce~ = In that day 1t served It's pur-
pos -1irly well. but thar day has been
long outgrown and the system which suf-
feed then is now being generally aban-
,Aoned because It has been found impossi-
Die to adapt ii TO the many new forms Of
properly which have come into existence
with the tremendous industrial and com
mercial development of recent years. We
have now manifold forms of property
that were not even dreamed Of at the
favor The development of the corpora
ton with the varied forms of property
following it, together with the wide dis
fribution Of securities. has entirely
changed the complexion of Affairs.
A system of taxation which could de-
rive revenue from lands and houses and
other kinds OF visible property which
are fixed. nailed down and unable 10
escape is by no means fitted 10 derive q
revenue from bonds and stocks and
moneys and other forms Of intangible
personal prosperity like bonds and st0clSs
and money and notes which can hide
and will hide whenever the tax rate
becomes high enough to take what the
owner Of the property regards as too
large a proportion OF the income from
that property.
The Gap Widens.
Even in the EARLIER days of corporate
development, the misfit was not quite 90
bad as II Is to-day. Year by year, how
ever. bonds and stocks and notes and
ether irons of Intangible personal prop
-erty represent a larger and larger per-
eentage OF the total property of the COM
munity. Year by year, at the same time,
the demands for revenue for public pur-
poses, such as good roads, good schools.
hoo 1ar DO faK r2fa