The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1911-03-17
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,
ton, But Fair Apportionment on
I 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 tax system OF state deserves
careful consideration, because the
power to tax is the power to destroy,
and a tax unwisely laid may easily
drain the life Of a community or kill
an industry. Approximately S20,OO0,'
600 year are taken from the pockets
of the people of Kentucky for the sup.
port of the state, county and munici,
pal governments 1t is incomprehen'
sible that a thing which means so
much in dollars and cents to the PEG
pie of the state should generally have
received such scant consideration.
There has been no considerable ex
travagance in the expenditure OF our
public funds. II is therefore time thai
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
for revenue, and whether they so dis
tribute the burden as 20 offer the least
possible hindrance to the development
of the state. Where there Is Cnmpe-
tition between communities such as
necessarily exists under modern con
ditions, an unwise system may, in
sharp competition for new population,
new Industries and new capital, easily
prove destructive of prosperity,
Revision Does Not Mean Exemption
The movement for a revision Of the tax
system Of Kentucky Is not a movement
in favor OF exemption o. any kind Of
property from taxation. ! know II ha1
been characterized In some quarters re-
Gently as an appeal for an exemption 4
capital from taxation. There has re-
Gently appeared In the press Of the state
an article from gentleman for whom !
have the greatest respect which reveals
a total misunderstanding OF the spirit
and purpose Of this movement In this
article It II declared that the attempt 10
revise the system Of taxation in Ken
lucky Is a part OF n general combination
of capital TO secure exemption from tax
aticn. state deliberately, and with fun
consideration, and having abundant on.
portunity to know whereof ! speak. that
no advocate OF the proposed revision OF
the tax system Of Kentucky has ever
suggested that any class Of property
should be exempted from taxation.
The purpose OF the movement for tax
revision IL pot TO secure exemption fol
any class Of property. On the contrary
II Is for the purpose Of removing oOnsti'
tutlonal restrictions so that the legtsla'
Nlre may have power so TO vary the
apethod and the rate that millions OF dol
lars Of property that now escape taxa.
ton may be made to yield a revenue and
thus relieve tho bHrden on real estate
Our present system has utterly failed II
this respect After nineteen SS1rs o.
trial We find It has practically broker
down, so Tar as concerns the raising. o.
Jeranue from stocks and bonds AMI othei
property Of that intangible kind which
can easily be hidden. -.
Shall we merely keep on with the ole
system that has failed. or shall we maxi
ourselves free 70 try methods that have
suocepdcd elsewhere In deriving largt
revenue from this kind Of property which
escapes In our state? ! make no appea
for the tax dodger ] favor no exemption
Of any kind Of property. | advocate {
system that will make every kind o
property Dear Y ldlI NuhEe 'i tue DhlAtll
rated according TO its capacity and col
lected by method fitted TO its character
Facts and Not Theories g..
Theoretically, under our present law
no property Is exempt. Practically, un
der our present law, millions upon mil
lions escape Only about S5750OO0 o
bonds. for instance were taxed in Ken
lucky this year. That Is manifest alb
surdity Let US address ourselves to tn
facts Let us face the conditions as the
zare--the laws Of economics and nf hUma
nature as they are-and not as We thin
they should be. ..u....
The system 81 taxation we have |
Kentucky Is what Is known as the Ger
eral Property Tax system. II Is a sy
tem which came into existence man
years ago when property existed IN sip
pie form, when mos{ that man ha
and live stock. or a stock OF goods.
other things visible 10 the eye and eas
assessed. In that day II served its pu
pose fairly we'll but that day has bee
long outgrown and the system which su
feed then is now being generally abaI
doned because Il has been found imposs
BILE to adapt It TO the many new forms
property which have come into eNlsten
with the tremendous industrial and cor
rnercial development Of recent years. v
have now manifold forms OF proper
that were not ever dreamed Of at 4
time the general property tax came In
favor The development OF the corpor
tion with the varied forms OF proper
following Il, together with the wide d
tribution OF securities, has entire
changed the complexion Of affairs.
system of taxation which could
rive revenue from lands and houses a
other kinds Of visible property viii
are fixed nailed down, and unable
escape, is by no means fitted to derive
revenue from bonds and stocks a
moneys and other forms Of lntangil
personal property like bonds and stoC
and money and notes, which can hi
and will hide whenever the tax r;
becomes high enough to take what
owner OF the property regards as
large a proportion OF the income fr,
that property.
The Gap Widens.
Even in the earlier days OF corporj
development, the misiit was not quite
bad as II Is to-day. Year by year, he
ever bonds and stocks and notes a
other irons OF intangible personal pr
erty represent larger and larger +
centage OF the total property Of the co
munity. Year by year, at the same til
the demands foc revenue for public p
poses such as good roads, good schO'
ETC. become heavier and the tax r
goes higher and higher. Al the sa
time the yield from bonds and stocks
grown srnalles and smaller. In ear
DAYS railroads thought nothing, for
stance, OF Issuing per cent bonds.
day any standard railroad would G
slider itself dlsgraoed in the matter
credit II II could not float It's bonds q
per cent or less. The Inevitable res
OF these changing conditions-with
tax rate going higher and the yield II
this class OF property going lower
been that the owners Of this kind
property will not list II for taxation "
9ho fav rate tnkee anywhere from 40
rs per cent OF the income yielded by I