The record., 1913-10-23

kentucky.
The present state constitution OF
Kentucky provides that Taxes shall
be uniform on all kinds OF property"
and on the surface this seems to be
so fair the average thinker can find
no fault with 1t.
In practice, however, it has been
found 10 be the most unequal tax sys-
TEN ever devised. End most Of the pro-
gressive states have abolished the
plan.
Its inequalities and unfairness may
be seen from the way IL discriminates
in certain classes of property and ex-
plains why Kentucky seems to have
so little intangible wealth as COM
pared with other states.
For instance, cash in savings banks
draws only three per cent interest,
gilt-edge bonds pay four per cent, real
estate notes six per cent, stock in
Some foreign corporations ten per cent.
while the tax on all is the same for
state purposes. but varies for county
ana city purposes according TO the To-
cation.
Thus where the income Is only 8
per cent and the taxes 2is per cent
It leaves the owner only y per cent
interest. and where the income is 10
per cent and the taxes 21R per cent
the interest is Ia per cent. In this
uniform?
In some counties land is assessed
at 80 per cent of Its value. in others so
per cent. and in others 20 per cent.
The state tax is the same in all the
counties. Is this uniform?
II an honest farmer lists his prop
erty at its fair value and his un-
scrupulous neighborlputs a lower value
on his property the former pays more
than his share, while the latter pays
less.
IL the state board of equalization
raises the entire list for that county,
the honest man pays on property he
doesn't own. and yet our law is sup
posed TO be uniform.
That the personally owned by citi-
gems OF Kentucky Is vastly more than
Is listed for taxation Is a well-estab-
lished fact; bat the tax receipts dom
show 1t. In fact, certain classes OF
property, such as stocks, bonds, notes
and cash have almost disappeared from
the tax rolls. and theEe evidences of
wealth apparently grow less each year.
II the present system is allowed to
remain in force, IL will result, as II has
In other states, in almost all kinds of
personally disappearing from the as
SCISSORS books, and lands and houses
which can not be hid or moved will
have to bear the chief burden.
II has been so in every state where
tho general property tax" has been
the plan on which property was taxed.
and most of the states have been wise
enough to get rid of such an unequal
and unfair system.
The Ohio state tax commission. in
it's 1908 report on the operation Of the
general property tax" says:
''It is failure for purposes of rev.
enue or equality. Perhaps not 5 per
cent OF intangible property is listed.
It Furnishes the honest. 1t rewards the
dishonest. 1t frequently results in
double taxation and lowers the stand
ard of integrity"
The entire revenue OF the state OF
Kentucky. Is about s7.000,00O. while
Michigan, with about the same area
and population. receives s14.000,000
from taxes, only e small proportion OF
which is paid on land.
In Pennsylvania there Is no state
tax On farms or homes.
There are 100000 acres OF unim
proved farm lands in Kentucky and
yet vast quantities OF farm products
have to be imported.
There are about twenty-five thou
sand square miles Of coal lands in
Kentucky, and yet we buy millions of
tens of coal from Pennsylvania. West
Virginia, Indiana and Tennessee.
Kentucky raises thirty-eiSht pe-
cent Of the tobacco crop of the United
States and manufactures only three
per cent OF IL.
These are significant facts and our
people should consider them.
There may be other causes for our
lack of progress but it is an estab-
lished fact that no state has ever
prospered under the general property
tax and II is also known that this de-
plorable system of taxation has always
driven out eapitai, retarded develop:
ment and caused untold losses In pop
ulaticn.
The last general assembly passed
an act amending the state constitu-