The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-01-05

peninsula. Also. IL should be consid-
cred that all, or nearly all, Of the
upper peninsula railroads are parts OF,
or feeders to, great and rich railroad
systems and that by the very nature
OF topography they occupy strategic
positions that are Of great value and
operate I'm instances 10 the exclusion
or prevention Of COMPETING lines. While
this may not be particularly felt Or
appreciated al the moment. the time
will come when their values in this
direction will be more forcibly obtrud-
ed The public should no longer be
called upon 10 bear an unjust share
Of the burden of that oyer-capitaliZa-
tion OF certain railroads for which II
IS nowise 10 blame, but of which it is
a victim.
Non-Partisan Tax Commission.
The Republican party platform.
adopted in Detroit in 1910. pledged a
special commission for the study OF
the entire tax system of Michigan in
all of its bearings. The Democratic
party platform, adopted in Kalamazoo,
contained a similar pledge. | believe
the suggestion TO be wise and timely
and one involving a promise that
should be carried out In my opinion,
the commission should be bipartisan.
/ The legislature is called upon by the
new constitution to provide means,
/ this year. for complete new equaliza-
tion OF assessments by a state board.
: Perhaps a study of the system Of tax
stion should be made by the same
board.
Equal taxation and the taxation or
/ all property will always be public prob
lens. Nevertheless, Michigan has
made great advances in the direction
of tairer and fuller taxation during the
past decade, and there is no reason
why this desirable progress should be
checked at this time.
Taxation Legislation.
In making recommendations relative
to taxation legislation. | deem II adj
I visable to call your attention TO two
features of our new state constitution.
One. the provisions affecting your
authority TO impose specific taxes. and
the other. the limitations of the sub
ieCts Of taxation that shall hereafter
contribute to the payment Of interest
upon our state educational trust funds
!, and the surplus primary school fund
interest.
u am conscious Of the fact that most
Of our taxation agitation i'm late years
, has been TO displace the old system OF
/, specific taxation, particularly of rail.
. roads: and that q system has been
I evolved of taxing the property of rail-
I roads and other public service corpor-
! ations on an al valorem basis and ac-
cording 10 average rate, which is work
, ing well and advantageously TO the
state and as 70 which | suggest no
/ change
. But. In the agitation against specific
, taxation in the particular instances re-
, ferred 70, certain merits and sd
vantages of that method of taxation,
fear have been lost sight of. / firmly
believe 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. OF
: at all successfully, by the ad valoren
, method. which might be taxed fairly
adequately and without oppression
and to the relief of the general taS
payer If withdrawn from general tax
alton and subjected solely to specific
+ taxation.
p, Then the governor goes on TO rec
, ommend in detail a specific tax or
? mining royalties. to be paid into the
! states general fund; a tonnage tax fol
, vessels, fairer method OF taXlne
credits. notes, securities, etc, saying
(. 1T might be well TO abandon the at
tempt TO assess credits under the gen
eral tax law and, if necessity required
10 substitute therefor an individual In
: come tax. graduated or otherwise, &C
q cording to some reasonable specifi;
(, rate" and withdrawal of mortgages
u from taxation, except a small specific
/ tax for recording. etc.
AS a tentative proposition. gener
al corporate income TAX Is suggeste,
for all corporations, except railroad
r and other public service corporation
" taxed ad valoren by average rate
analogous 10 the federal corporate In
n come tax, TO bear equally upon indus
II trial corporations. mining. manufactur
P ing, etc. in proportion TO income, II
u lieu OF present state taxes.
e Taxation Of Mortgages.
= The present law for taxing mort
cages Is declared a failure. Laws O
!. other states are cited, and a mort gag
p registration system of taxation
Continued on PAGE Seven.