The Detroit times., 1911-01-05
|OsB0RA's
MESSAGE


SCsstfnued From Page one)
roxss There Is less division OF the
road business than In the loM.i
110| 1nsula. Also, IL should be cSnslu
<~<5 mat All. or nearly all. II tn.
<SrI n peninsula railroads are part on
Feeders TO great ana rlSh nature pilli,o Of
4 ~ Sxraphy they occupy strategic po,,
- Ions that are OF great value anu 1,l
<D1|Rrate I'm Instances 10 the eNciustW VIM, ne
<0f|vention OF competing lines hile
|IkA may not be particularly felt or APP
\ &r.ciated at the m. 'nent. the time VIII
- IL when their values in this dlTeS-
|/11X will be more forcibly obtruueu,
+ Gk public should no longer be called
MIN TO bear an unjust share OF the
f <den OF that over-capitaliZatioh OF
- AIN railroads for which IL Is noWlSe
f - blame, but OF which IL Is Nlctlm'
Xp.rtss.n Tax system Commission.
me Republican party platIo51 ~
~ cial commission for the study or the
|1 re- tax system OF Michigan IN al
~f'{fs bearings. The Democratic party
Norm adopted in Kalamazoo. con
kaned similar pledge. believe ths
49, |xestion TO be wise and timely and
~ Involving a promise that should be
cnffied out
nheuld be- bipartisan. The leglsiatute
. cnlied upon by the new constitution
k9o1 Drovide means, this year Tor com
<D1ofe new equalization or asseSstheh'S
5nA<le by state board. Perhaps a
|ot6dy OF the system OF taxation could
bo3made by the same board. the TAX
'&oDmission as at present cohstltu, . eI
ha8 power TO alter and fix general
.xnhiations n sufficient special fund
should be given IL 10 pay the expenses
of such experts as would bc reQulIeu
.fofexamine into and pass upon MINING
>Or1operty and other values in the state
orafhis work should be provided Tor III
some other manner
M Equal taxation and the taxation or
All property will always he public
'plobiems. Nevertheless. Michigan has
1n1xle great advances in the direction
Of fairer and fuller taxation during
The past decade and there is no reason
Why this desirable program should be
ehtcked at this time.
Taxation Legislation.
IN making recommendations relative
to- taxation legislation, | deem IL adj
ivi&able to call your attention To TWO
textures of our new state constitution.
One. the provisions affecting your au-
fhority to impose specific taxes and the
other the limitations of the subjects OF
|taxation that shall hereafter contribute
10& the payment of interest upon our
otote educational trust FUNDS ana the
uuFplus primary school fund interest.
kf Vn0er the old constitution, authority
tot levy specific taxes was limited To
banking. railroad, plank road and
other corporations; and all SPECIFIC
interest on the educational trust funds,
the surplus, If any, constituting a bonus
distributed as interest upon the pri-
mary school fund.
The analogous provisions OF the new
differ from the old in Ger
tain marked respects Section OF
article y. provides that The legtSla-
ture may by law impose specific taxes
which shall be uniform upon the classes
upon which they operate" and section
ri OF the same article is 10 the effect
that "All subjects Of taxation now con-
frfbuting to the primary school fund
under present laws shall continue to
contribute to that fund. and all taxes
from such subjects shall be first ap-
piled TO the payment of interest upon
the primary school fund, university.
and other educational funds in the or
der herein named. after which the sur
plus OF such moneys shall be added TO
and become "A part OF the primary
school interest fund
/. Authority TO resort TO specific taxes
- now practically without Limitation
except as respects the provision of uni
xormity; and revenues derived from
4peclnc. taxation extended 60 new SUBJ
1ects or taxation not now contributing
20 the payment of interest upon the
fducational funds, can properly be
turned into the general fund of the
state and used TO defray the ordinary
expenses of state government and are
the primary school interest fund.
VI 4 believe that much of significance
and promise for betterment OF tax
4tion conditions in Michigan lies IN
law.
am conscious OF the fact that most
81 our taxation agitation In late years
mas been TO displace the old system of
specific taxation particularly OF rail-
roads; and that system has been
involved of taxing the property OF rail-
roads and other public service cor
porations on an al valorem basis and
according TO average rate, which Is
working well and advantageously to
tne state and as To- witch l suggest no
But, I'm the agitation against specific
taxntion In the particular instances re-
1erred TO. certain merits and advan-
tages OF that method OF taxation.
gear nave been lost sight Of. firmly
Delieve that there are classes OF prop
erty listed as the subjects OF taxation
UNDER our general tax law that can
never be taxed adequately or fairly or
At all successfully by the al valorem
method, which might be taxed fairly,
adequately and without oppression and
20 the relief OF the general taxpayer If
wltndrawn from general taxation and
subjected solely to specific taxation
rev instances | have in mind will
sli ,s my point: Take. for instance,
listed with annuities as personal prop
erty subject TO be taxed under our gen
eral tax law: but these valuable rights,
representing an income to their holders
drawn from and by Michigan
mines of very substantial amounts.
are aDsoutely escaping taxation IN
michigan, because the general tax law
~ Inadequate 10 reach and 10 subject to
taNation that particular species Of
property. The imposition Of n reason
able specific tax upon all mining royal
ties az annual incomes chargeable
upon tho mines and to be deducted by
them from the royalties otherwise paw
able would be a fair. simple and effca-
'cious method of subjecting this class OF
property TO taxation. The taxes thus
levied could, with propriety be turned
Into the general fund OF the state
"a another species OF property not prop
erly taxed under our present general
TAX law Is vessel property, Michigan is
one of the creates ShiD-owninu states
IN the union, but it's vessels are regis
tered I'm other states whore a reason
ab4e SPECIFIC tonnage tax rs imposed or
IN outlying. townships far from the
actual residence OF it's owners aud
where good bargP for practical
faxation exemption may h. driven with
complaisant supervisor All such
'Vroperty should be withdrawn rom
Keperal taxation and should be taxed
Doiely by the state specifically. and
more income would be derived from q
ueasonable and fair tonnage tax such
ISL understand is imposed in Mime
8otn and some other lake states. thaa
BY continuation of the preSeut
Method OF vessel taxation under the
Heneral tax law.
NJ Further, the generai tax law at
tempts. very inadequatcly and with no
visibility of uniform or fair results.
no 3assess individual credits less indi-
ytdual debts. A fairer method Of tax
Int Individual holdings Of securities.
notes and similar values. or rather. net
Individual worth, would be by specific
mcome tax, to the imposition uf which
~ the state no arricr now exists
Uz10er our constitution It might be
wei TO abanC IN the attempt 10 assess
orodfts under the general tax law and