The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1913-10-22
UNJUST TAX Law
IN KENTUCKY
How Unsatisfactory tho Pres
!. ent Tax System Works
in This State
Most Unequal system Ever Devised
and Most Of the Progressive States
Have Abolished the Plan Used In
kentucky.

>~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, 1t has been
found to 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 1t discrimlnares
in certain classes of property and ex-
plains why Kentucky seems to have
SO little intangible wealth as com.
: pared with other states.
3. For instance, cash In savings banks
draws only three per cent interest.
gilt-edge bonds pay four pei 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
and city purposes according 10 the To-
cation.
Thus whore the income Is only 8
per cent and the taxes 2ia rer cent
Z 1t leaves the owner only IL per cent
interest, and where the income is 10
per cent and the taxes 2ls per cent
the interest is Tia 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 uu-
scrupulous neighbor puts lower value
on his property the former pays more
than his share, while the latter pays
less.
II 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 c.ti-
gems of Kentucky is vastly more than
is listed for taxation is wei.-estab.
ssiished fact: but the tax receipts don't
show it. In fact, certain classes OF
property. such az stocks. bonds, notes
and cash have almost disappeared from
the tax rolls, and these evidences of
wealth apparently grow less each year.
II the present system Is allowed to
remain in force, 1t will result, as IL has
In other states. in almost all kinds CT
personally disappearing from the as.
SCISSORS books, and lands and houses
which can not be hid or moved VIII
have to bear the chief burden.
It has been so In every state where
the 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
its 1908 report on the operation CT the
general property tax" Gays:
at is a failure for purposes OF rev
enue or equality. Perhaps not per
cent OF intangible property is listed
1T 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 $1,000, 900, while
Michigan. with about the same area
and population, receives $4,000 oOc
from taxes, only q small proportion oil
which is paid on land.
In Pennsylvania there is no state
tax on farms or homes.
There are 1000. 900 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 CT
tons of coal from Pennsylvania. Wesl
Virginia. Indiana and Tennessee.