Belding banner., 1911-11-09
MANUFACTURES
DON'T LIKE It
Corporate Excess Plan Of
Special Commission Of
Inquiry Into Tax
alton
WANTRATIONALSCH
Are Not Trying To Avoid Paying
Just Proportian OF Taxes-A Beld-
ing Manufacturers Views.

from Tie general EXcuuVe committee
of Michigan Manufactures enclosing
an interview in reference TO the propos-
cd Corporate Excess Plan, suggested
by the special Commission on Inquiry
into taxation, showing that manufact-
urers Of the State have not been correct
ly quoted in good many particulars,
in reference TO this matter.
They are not opposing rational
scheme of taxation and they are not
trying TO avoid paying their just pro-
portion. Naturally, they wish to know
just what that proper proportion is and
they are not certain that il is necessary
TO take away from their local assessor,
acting under the control OF the present
State Tax Commission, the authority
of fixing assessments.
One of the interviews is from prom
inent manufacturer, whose plant has
contributed very materially TO the bull
ding up of one Of the principal cities Of
the State, suggests that there is no
necessity of radical revision of our
Tax Laws He says, 81 cannot under
stand just why there is so much noise
about revising the Tax Law, 10 make
the manufacturer pay more taxes. Ii
there are manufacturers who do not
pay enough, the Tax Commission has
authority To raise their assessments.
l / never had this authority until August
OF this year. Does anybody claim that
il has already demonstrated that IL is
either incapable or untrustworthy in
this power? Why not give it
a chance 10 see if il cannot correct any
injustice there is?"
"Why is it necessary to take away
from local assessors all the authority in
these matters? Have all the local assess.
ors in the State demonstrated that they
are unfair with all other kinds of prop
erty except manufacturers? Ought
they not sometimes to have the right,
if their community wishes il, TO favor
a struggling industry that is building
up the city? A good many of the sue
C c,ssful Michigan factories have been en-
couraged and fostered by this means
and have paid the debt back with in
terest by multiplying the inhabitants
and the wealth Of Michigan towns. 1t
may be true that some manufacturers
are not paying on the fair cash values
of their properties, but looking at it
from purely selfish standpoint, how
many other men can truthfully say
that they are assessed on their true
cash value? | am curious TO know
what would happen if we applied to
this situation the old rule that "He
who is without fault should cast the
first stone"
One of the prominent manufacturers
in Belding, in an interview with the
editor, OF the Banner says: '9f you
will go over this report you will find
that it is proposed To penalize success
full corporations by taxing their profits
regardless OF the actual value of the
property whicn they may have after
taking into consideration the amount
the local assessor has placed upon the
property, and deduct this from the
valuation placed upon it under what
they term the corporate Excess
Plan"
This Corporate Excess Plan provides
that a cooperation which earns net
profit Of $4,000 per yearis worth $780,
600, that II IL assessed for $4,000 by a
local assessor then $4,000 would be
assessable by the State Tax Commission
aside from the local assessment of
5000
This plan is proposed against corpor-
alton only, and IL would seem To me
that inasmuch as corporations are now
taxed by the Federal Government and
pay n liberal tax TO their local COVER
ment it is hardly just and fair that
they should be further penalized accord
ing TO the success they make Of the
manufacturing business.
So far as separating the local taxation
from state taxation this feature may bs
commendable, and | am inclined To
think IL Is but am un-alterably oppos-
ed to the passage OF law whereby the
entire burden Of taxation of state ex-