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

age nor tUr from % cents mas ENSS y
a tax rate NJ S. too high fer many kinds
OF property, and the process Of hiding
gets well under way,
Nor DO we stop here on top OF this
state tax OF 20 cents and the county. tax
81 80 cents there Is stin imposed local
lax ranging all the way from n cents TO
SIS, and sometimes higher and WITH
every . or 10 cents added to the rate
more and more property Is eliminated hN 1
hiding or undervaluntion, The average
tax rate In cities and towns OF FIRST sec
ond. third, fourth ana nfth classes IN
Kentucky Is about Gg2. This amounts i
70 about s. per cent Of the return from |
any Z per cent Investment. IL amounts
10 a little under As per cent Of the return /
from any per cent investment, and y |
you apply Il to 2 3 per cent investment
such as a savings account Il takes near |
y IS per cent or the income. Not even
the widest EXTREMIST would propose an |
income tax Of IS to IS per cent Yet that
Is what we try 10 collect from some
classes Of property. II Is too much o |
expect OF weak human nature, IL Is q |
stupid defiance OF economic laws as well |
as Of the law Of human nature. When |
any tax takes more than 10 per cent Of
the income from any class OF property. |
undervaiuatl0n and evasion will begin, |
The larger the percentage OF Income |
taken by a tax the greater incentive 70
evasion, undervaluation and perjury IN
order to ESCAPE the burden, until you
reach point where 20 pile further taxes
on a tax rate already high does NOT
Weld proport!onate increase OF reve-
nue., 49,.
We Have Tried II Nineteen Years.
We fixed this system in the new CON
stitution nineteen years ago. Our inten-
lions were good. We acted with the best
light We had at that time. Unfortunately.
however, AZ the time we adopted Il, the
system was being abandoned elsewhere,
II Is not yielding sufficient revenue for q
progressive state. II hampers industries,
II burdens the poor man. II drives gan-
tai out OF the state, or into forms OF in
Vestment that do not promote business
activity and do not furnish employment
TO labor and do not develop the resources
Of the state,
II Is a mistake TO suppose that II Is the
rich man only, or chiefly, who has
cause Of complaint against the present
tax system. The rich man can take care
of himself, and does take care Of him
self He understands the tax laws, or II
he does not understand them himself he
Is able to employ the best legal counsel
to tell him how to 50 arrange his Invest
ments as 10 be In safe position when
the assessment time rolls around. II al
else fails. he can move out OF the state,
He Is smart enough 10 put the greater
part OF his estate in forms Of proper
that he can easily conceal from the as
SCISSOR. The poor man can not do these
things. II he has been fortunate and
thrifty enough to save anything at all,
generally II first takes the form Of 4
savings account and then Of a home.
He knows little or nothing Of stocks and
| bonds. II he has a savings account he
| must conceal II from the assessor or give
| up practically the whole Of It's YIELD In
| taxes II he has not saved enough for a
| home he stll pays a tax on real estate
| for every man who lives under a root
| must pay this tax, whether In exchange
/ for a tax receipt rom the sheriff, or for
| a rent receipt from the landlord. There
| Is no escaping Il. And II the poor man
| in Kentucky has tried to buy a home and
| has made a partial payment on Il, he
| finds that the notes representing his de-
/ ferred payments are also taxed, and the
! lender may be trusted 10 arrange matters
| so that the owner Of the property viii
| notes, practically making him pay double
| tax TO the extent o. his unpaid purchase
money.
We Need Outside Capital.
II has not been long since heard the
| very startling statement made by a
! speaker az a public gathering that we
| do not need foreign capital 10 Kentucky,
| / am quite sure no editor o. a Ken
lucky newspaper Will agree to this,
| Practically all Of the development OF
the resources Of Kentucky that has
| taken place has been by the aid Of for.
| cign capital. II must have been so
! We did not have tho capital ourselves
| II we do not get Il from the outside
| We would not have II at all The de
| yalonrnpnt now going on in Eastern
| Kentucky is almost wholly BY means
| ~ oUtgide capitaI We need this out
side canltal We want It 10 come. W,
want II TO stand FOR It's fair share o.
tLa burden OF our expenses. II Is mo-
proposed 10 exempt Il from taxation IL
ordar TO get ii. but II Is proposed 10 ad
iust the taxes upon every form Of Capi
tal that comes with a reasonable view
- q 4.
ers and also with an eye out for III
Stbar IN Ike adyantaFes offsred for snc,
S,,,.es,merts
Some Absurd Results,
-. -, =,
: Let me point OUT rev OF tIe apSurnl
= ties In practice n enao oIrS the ssiieru
III properly TAX IN hrhtuivhy. e. us gu
: pose man WIN l1 I,l1, uoilats
r q savings account III t . NIp.i ~ W
v prevailing rae OF ~ ~ @ ,. .Iet v. y.
cent, ne wouiu rtai ih I ~ gear nl ~
nj dollars on hls 80, sa ~ re "Iuia pa
) &6.s5 OF TINS So1Vv IN tdAeh, 90 NJ
! know what the TAX rate now u IN
I ducah. several years ago was ~.
4 on the MWW II Ihls man na9 ms Inol
e sand dollars deposited ,n al, rauucah pay
!, at three per cent interest," ne Wou
e have realized SNW year from ms 3, !
v vestment, anu ne Woulu nave Palu ~.
q In taxes, paying y penalty lor per
"a thirty, IN view o. nus. ~ ~ ~ 10 o Mo
l. der that OUT OF TloTe 5hS a. so.V'vpy.voV
v savings IN the IhHe1 stales mere a
Z barely 63lo"OUp IN SaNlhgs psnks IN Ne
~ lucky. The more llDerai nohcy pursu
. by the New England states mas ma
p that little corner OF our country Y
"A great reservoir OF saNlhsS luiius,
n boarded dollars OF peopis OF sInail NEAR
Ia which In the asgItBate MAKE sucn
a enormous sum, lhal eveIy sreat en,t
"a prise win deSerN.ns pq 1I issue 70 w
10 looks hrst TO the New england mark
ts Banks Protect Themselves,
IL -, -, s,I. =, -.