The record., 1913-10-23
TAX LAWS IN NY.
CAUSES EVASION
Present Unsatisfactory Laws
Responsible for Small
Returns "a
Retard Development and Lower Stand
ard Of lnteorlty-Enorts To Secure
Better System OF Taxation Has
Been Persistent for Fifteen Years.

Frankfort. ky.-(Special)-The ef.
forts to secure a better system OF taxa
ton for Kentucky have been per-
sistent for fifteen years but owing to
the ironclad restrictions In the state
constitution IL lie exceedingly difficult
TO secure any change.
Tax commissions have repeatedly
been appointed by authority OF the
legislatures and these commissions
have unanimously condemned the gen.
eral property tax which was adopted
by the last constitutional convention
and as the law is constitutional II has
been impossible for the legislature
alone TO repeal IT,
However, the last general assembly
undertook to amend the constitution
as provided by law and this amend
ment will have to be ratified by the
people at the November election and
II 1t fails to carry 1t cannot be voted
on again for another Eve years.
The effect Of the present law is TO
drive people and money from the state
and to prevent other people and money
from coming in and building up our
industries.
This is how the general property
tax is regarded by outsiders as indi-
Gated In report OF q commission ap-
pointed In another state and II ap.
plies in all respects to our present
tax system.
The personal property tax is Q
farce 1t falls inevitably upon the
comparatively few who are caught
The burden 1t imposes upon produc'
ton is out Of all proportion to tho
revenue IL produces.
Year after year state and local as
sessing boards have denounced II az
irarrscticable in its workings and un
gust n It's resuffs, fhsse recon-
mendations have for the most part
passed unheeded or have led to In
effectual attempts to bolster up the
Law. II is time the situation was
faced squarely. and the tax In IL,
present form abolished.
so far as the personal property
tax attempts to reach intangible forms
OF wealth, its administration is so
oomical as to have become a byword
such method OF collecting
revenue would be a serious menace
to democratic institutions we're II moi
so generally recognized az a howiins
farce.
But IL Is not a farce to those who
are fully assessed. These are chief,
the widows and orphans who ars
caught when their property is listed
nj the probate court. farmers, retail
merchants and others. incorporated ol
unincorporated, with stocks of goods
and the small investors who are no
skillful enough to make non-taxabls
Investments"
The state referred to has changed
its tax system and already the receipts
from taxation have increased enor
mously and the peculiar effect Of !
has been TO lower the taxes on land
and improvements by securing q great
er revenue from personal propert,
which had formerly produced little o.
no returns.
Kentucky must increase its revenues
to keep up its schools and public In
stitutions and 1t would be manifest!
unfair to make the property at presen
paying taxes sustain this added bur
den. but under the present law ther,
Is no other recourse.
II the amendment carries and tn,
legislature is empowered to classif,
property so as 10 bring. under the az
SCISSORS scrutiny the vast amount .
personal property now escaping taxa
ton the revenues can be increase,
and taxes on lands and houses dimin
ished and what IL more important thai
all we win be able to develop our rs
sources, maintain our population an
attract capital and people who vii
help to build mp the state.
Ohio has recently changed its ta
laws and has already been benefits
and Tennessee is about to renounc
the general property tax. Othe
states have either long since abolishe
it or are preparing to do SO.
The present system in Kentucky wa
popular when the country was youn
and wealth largely confined to res
estate which could not be hidden.
Wealth is now largely In persona
securities which the assessor can no
locate and in consequence this class O
property escapes almost entirely.
Can we affcrd to neglect this grea
question and yet hope to compete wit
neighboring states which are less "a
vored than ours naturally but hav
the advantage Of cheap money and 10,
taxes?
II the amendment fails to carry tn
next census will show that Kentuck
has moved down another peg or SO /
its standing among the states an
those at present paying taxes will II
evitably have to pay more on tn
same property while others will el
cape by hiding their personal propert
from the assessors.