The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-06-17

men who work in the shops, the fac
tories. on the railroads, in the school
room, in the stores and OfnceS, ana II
is we'll known that when a mar OF
his class dies. in ninety-nlne cases
out of a hundred his savings of a life
time will be represented by his life
insurance and possibly a little home
built with the aid of the building and
loan association. AS soon as he dies.
the Government steps up to his widow
and orphans, and, for all practical
rpOSe compelS them to turn over
to it 40 per cent of the savings OF the
husband and father. Such a law is
an atrOcity-
"a monster, of such frightful mien,
AS to be hated, needs but to be seen
And the policy is as Improbable as
it is unjust. The law is so glarinSiy
wrong and unjust that it is u%nenforc-
ed and unenfOrcible. Some one has
said that nobody pays these taxes but
a few ultra-righteOuS. the widows and
orphans, the IDIOTS and matt Elk
p%erience has taught that it is simply
impossible to get solvent credits on
the books wherever the uniform ad
valOrem rule prevails.
Speaking to this question. the Ohio
Tax Commission Of 1908 says:
1oI. ~ AN nv
sd 1t rewards thed ishOnest.
I'D. 1t results frequently in double
taxation.
"4th. 1t is unjust to the owners Of
all other property G. e., all real or
tangible property.
5th. 1t lowers the standard Of in
tegrity."
Evils OF High Rate.
Mr.. Beckett comes to h evils of
| tho hi0h rot0 0n6 o6unn0foc q lon.
rate IN the intangible property. He
says:
An African hunter was asked the
best way to tame a lion. He said,
First catch the lion"
No system Of taxation will be sue
cessful that does not get the property
on the books, and it is simply impOS-
sible to get intangible property on the
books when h tax is more h a
fair percentage Of the income from
the property. $
1t is easy to hide what nobody
wants to see. 1t was impossible to
find Jesse James in Pike County. Mis-
souri,. The people did not want him
found.
No inQuisitorial board. no number Of
tax ferrets will locate that vast body
Of wealth in North Carolina known
as intangible securities, 50 long as the
people feel that it is being taxed be-
yOnd that which it is able to bear.
; Impose q fair rate and public senti-
ment will force it to the surface. A
/ man simply "a to be about as honest
| as his neighbors require.
: Prior to 1897, intangible property
|. in Maryland was taxed under a uni
? form ad valOrem law. The rate, I'M
! der this rule, in the city of Baltimore
was 81 on the one hundred dollars
, worth Of property. Under this rule
; there vas listed for six mil.
1iOn0 Of into OOih1o C0nryvtior TA<
rule was changed and a fiat rate OF
> 80 cents ON the one hundred dollar:
a was imposed on property of this class
= and the next year the amount LISTED
u jumped from six million dollars t.
ffty-five millions. Since then it ha,
steadily climbed, until now. in the cit,
of Baltimore alone. there is listed four
n hundred and fifty million dollars O
intangible securities. Under a uni
form rule. with a tax Of 50, the publ,
got a revenue of $4,000 per year
under the classified rule, with a tax 0
80 cents. the public receives a revenu,
. of over $3.50. 900 per year.
h This experience in Maryland ha.
been duplicated in Pennsylvania. I,
q that State the rate Of intangibles is 4,
cents on the one hundred dollars
Under this rule more than one billio,
six hundred million dollars are liste,
for taxation, and the State receives
revenue Of over six million dollars
more than h entire revenue from al
sources received by the State of Nortl
le Carolina.
In Massachusetts, there is a fat rat
on deposits in savings banks Of 5
d cents on the one hundred dollars. Thi
It is paid by the ban itself, and charge,
It to the dcpOsitOr. Under this rule, tn
% savings banks OF Massachusetts, hav
t. proslsered more than those of an
,e other State in the Union.
Tho hiyfnry nf nyorv Sfoto nnd n
v every country shows that as the rat
on intangibles has increased they hav
gone into hiding. and as the rate ha
been reduced, they have come to tn
- surface.
o Having levied a reasonable rate o
intaHgibleS. the most rigid laws cOul
i'm be enacted to require the listing @
this kind of property for taxation. an
=, public sentiment will enforce the Law
The Legislature could provide that
a man failed to list a solvent credi
- he would forfeit all interest, and
" could further provide that when tn