The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1912-01-19

,ronr;atiop. the issuance of bonds Is pro-
,r;dad to meet the deficit. This sort OF
makeshift ~financiering will ultimately
bankrupt the State, and no excuse can
be offered for this profigate manage
ment of the public business. The money
must be provided by taxation to pay
current expenses, or expenses must DC
reduced. The most elementary business
principles condemn the issuanc OF long
timed bonds to get money with which to
nav the expenses of today. II may be
good policy to float bonds for permanent
improvements to be enjoyed by future
generations, but bonds should be author
ized for such purposes, and the money
derived from their sale should be used
for no other purpose.
It is not an impossible matter to &C
comnlish the desired end without laying
too heavy an impost upon the property
and business interests of the State. !.
But this result can be accomplished
only upon a careful revision OF u tax
laws. and a more equitable apportion-
ment of the burdens of government.
Much of the property of our citizens IS
now taxed to the limit that it should be
made to bear.
Other classes Of property that are
probably more valuable and profitable tc
the owners have escaped, and are now
escaping the making of contribution to
the State of their fair share OF the rev.
snues required to be raised for public
purposes.
The foreign business corporations, and
profit thereby, have the corpus OF their
estates and assets outside of the state
and beyond the reach of tax collectors
of the State.
1t is but fair that as they profit from
the business they secure from our peo'
pie they should pay proportionately for
the privilege as the home nan must DO
The telegraph, telephone, express.
sleeping car and railroad companies, and
other public service corporations, enjoy
and exercise franchises and privileges
under the Constitution and laws OF the
State and their tangible assets are in a
very large part outside of the State.
But they find the business they secure
and control in the State of substantial
value and of dividend paying proportion
to their owners, while the taxes which
they pay to the State for the privileges
which they exercise and enjoy therein
are meagre and inadequate and entirely
out of proportion. :,
The Constitution has provided special
methods for the assessment OF the taxa
ton of the property of certain corpora
tions. in order that they may made to
pay their Just dues to the State; and a
fair revision of our laws on this sub
iect will result IN a greatly increased
revenue to the State from these sources
The privilege to transact business as a
corporation is a valuable franchise, and
vet the absence of a franchise tax is de
priving the State yearly of sums which
should legitimately be levied upon and
collected because of the exercise of sucf
a right.
Whether the corporation taxes which
should be collected to require all corpor
ations to pay what is only their just
due to the State should be collected as
ad valorem, or privilege taxes, or as
taken on gross receipts, or by resortins
to the exercise of a c~onjoint application
of the foregoing or other methods of tax
alton, 1 shall not now suggest, but leave
the determination of all such matters o
detail and procedure to the wisdom ant
, discretion of the Legislature. A system
OF taxation which would work an in
Justice to corporations, | am confident
in advance, will not be considered by
Mississippi Legislature, but the tim
has come when the true value of prop
erty and franchises of corporations doinI
: business in our State should be deter
mined, and when determined they shoul'
be raised by resort to the property an
property rights and interests of tn
State, and by applying to them the law
which are intended to raise revenue.
l An ad valorem system of taxation a
the sole reliance for revenue is made
quate, because experience has laugh
+ that it docs not reach all the object
; from which revenue should rightly b
> raised.
! Our State is not abreast of the time
in that respect. The Legislature of tn
State has never provided for the cole,
> ton of an income tax, although thos
: who possess incomes are as amply abb
> to pay a reasonable tax to support tn
!, government as they who own real or pc
= sonal estate, which may in fact be no
Z productive.
: The payment of an inheritance tax b
: all who come into wealth without exc
ton is not a hardship, and in almost a
civilized lands such a tax is levied an
Z collected.
. But no such tax has been levied b
any law on the statute books of Missi
sippi.
!, Public servants should be paid f,
faithful public services, and adequatel
!, paid, but they should not be authorize
to levy and collect from the public tax,
g in the guise of fees as emOluments
Il their offices, to their undue enrichin
and to the loss and detriment of Il
u public.
1t is unseemly that the sheriff or IL
r clerk of a court of any county shou
- be authorized by law to collect and r
y tain as his own fees that aggregate a
: nually many times over again the a
nual salary paid to the very highest @
. ficers of the State.
l.. If the subject is approached or
q handled with that painstaking thougl
and care that its Importance demands.
am convinced that all of the revenu
+. needed for the expenses of the Sta
# government can be raised as need,
i. without going further into debt, al
that the present rate of ad valorem ia
alton can ultimately be lowered.
ID There is much that can be saved