The record., 1911-01-19
TAX SYSTEM
/ NEEDS REVISION
Address of A. Y. Ford to the
Members of Kentucky
Press Association.
PRESENT MODE COSTS HEAVILY
Tax Revision Does Not Mean Exemp-
tIon, But Fair ApportIonment on
All Kinds Of property-lt
Means Uniformity.

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 tar system OF a state deserves
careful consideration, because the
power TO tax Is the power TO destroy.
and q tax unwisely laid may easily
drain the life OF a community or kill
an industry. Approximately 100000
600 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 incomprehen-
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. II
Is difficult to understand why II 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 OF
dhe methods by which these large rev-
senues are raised. We have no special
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 that
We now stop TO 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 various kinds OF property,
whether the tax laws impose the least
burden consistent with the demand
Tor revenue, and whether they so dis
tribute the burden as to offer the least
possible hindrance to the development
OF the state. Where there Is compe-
tition between communities such as
necessarily exists under modern con-
ditions, an unwise system. laid with
ont due consideration OF the handicap
Il n1ay impose upon the community in
the sharp competition for new popula-
fiOn, new industries and new capital.
may easily prove destructive Of pros
perity.
.Sevislon Does Not Near Exemption
s,-s.ssn nf rentucf,- ~ mai A l,nos..z.,a..t
"a favor az erernui.oh r---sfffy kind OF
pro3erty from fa>..unr know II fa3
Bees characterized In soms quarters re,
.capstni from taxation. There has re-
Gently appeared In the press OF the state
an article from a gentleman for whom
have the greatest respect which reveals
a total Misunderstanding OF the spirit
and purpose of this movement. In this
article Il is declared that the attempt to
rev,se the system OF taxation ,r, N Nen, sen,
of capital 70 secure exemption from tax
,afscr. I state deiibera teiy. and with full
consideration; and having abundant or.
no advocate OF the proposed revision OF
the tax system of Kentucky has ever
suggested that any class OF property
should be eHeRpted from taxation.
The purpose OF the movement for tax
srevision T. not TO secure exemption for
any class OF property. On the contrary.
e + foT the PSpo:e ., ,sns eo.n
<urs may have power so to vary the
method and the rate that millions or dol
Sars OF ps0perty that now escape taxa
zion may be snade TO yield a revenue and
Shus relieve the burden on real estate.
Our present systeUa has utterly failed IN
iris respect. After stpeteen years of
'srist We md II has practically ,1rokep
down. 90 Tar as concerns the raising OF
revenue from stocks and bonds and other
property OF tSat intangible Asine ;wh4c1
sran easily be htdSeu.
Shall we merely keep on with the olf
.syssen that has failed. or SHAH we make
ourselves free To try methods that have
succeeded elsewhere in deriving large
revenue from this kind of property which
sescapAe in our state7 make no appeal
for the tax dodger. favor no exemption
eof any kiad OF property. advocate
system that will make every kind OF
property bear a fair share of the burdens
rated according 20 its capacity and col
1ected by a method httes - tts character
Facts and Not Theories
theoretically, under our present 5aE
no property f. exempt Practically. un-
Asr our present law, millions upon nAl-
Hons escape Only about S.s50.oO OF
abonds. FOR instance. were taxed In Ken
,fueky THE year That Ia manifest alb
,rurdity. Let us address ourselves to the
facts Let us face the conditions as they
fare-the laws OF economics and OF human
mature as they are-and not ns We shink
The system Of taxation ~e have y
Kentucky is what r. known as the Gea-
.eral Property Tax System. 1t ds a sys-
TEN which came into existence many
years ago when property existed in sim
pie form. when most that man had
would be IN shape of lands and houses
sand live stock. or stock OF goods. od
other things visible 10 the eye and easily
assessed In that day II served its pur-
pose fairly well. but that day has been
long outgrown and the system which suf-
ficed then is now being generally aban-
doned because Il has been found impossl-
BILE 20 adnpt u to the many new forms a
property which have come Into existence
with the tremendous Industrial and com
have now manifold forms OF property
1hat were not even dreamed OF at the
time the general property tax came into
favor The development OF the corpora,
Fion with the varied forms of property
Following ~. together with the wide dis
tribvtion OF securities. has entirely
ichanged tho complexion Of affairs.
n A system ~ taxation which could de-
rive revenue from lands and houses and
other kinds of visible property. which
sre dzed. nailed down. and unable "a
escape. A. by no means fitted TO derive =
revenue from bonds and stocks and
moneys and other forms Of intangible
personal property. like bonds and stocks
and money and notes, which can hide
and will hide whenever the tax rate
besomes high enough 10 take what the
owaar Of the property regards as toe
tarse a proportion OF the income from
that property.
The Gap WIdens.
Even IN the earlier days OF corporate
development, the misft was not quite sc
bad as Il II today. Year by year. how.
ever. bonds and stocks and notes and
other frome OF intangible personal prop
.erty represent a larger and larger per
confage Of the total property OF the com
smunity. Year by year at the same time
che demands tor revenue for public pur'
poses, such as good roads. good schools
etc. become heavier and the tax rate
goas higher and higher. At the same
time the yIoid from bonds and stocks ha.
grown smaller and smaller. In earlier
days railroads thought nothing far In
stance, OF issuing per cent bonds. To
day any standard railroad would con
Oider itself disSraeed In the mAttsr o