The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-21
MOORE PROPOSES
TAX SEGREGATION
Auditor Working OH Complete
System for Consideration of
Legislature.
WOULD MEAN EQUALIZATION
State Tax on Intangible Property
Might Result i'll Actual
Valuations.

Complete separation or segregation
of the subjects OF taxation is :ne gil
gantic problem being worked out by
state Auditor c. Leo Moore for the
consideration of the General Assembly
next year. Ills knowledge OF tho sub
ject. the working out of his campaign
for law enforcement, and tho public
discussions of the topic now going on
all over the State. arc all being used
in his effort to evolve system that
will be both feasible and equitable
II was recognized by the state Tax
Comm ission which labored in 1910
and 1911, and has been recognized
generally by those who have studied
the subject that segregation is the
ideal solution, producing. as it does.
natural equalization. However. there
are so many possibilities TO be con-
sdered that the scarcher after truth
soon gets into Il sort of maze, through
which he can make his bewldcred
way only step by step.
Segregation Means EQUALIZATION.
The object aimed at is the applica-
ton OF certain kinds OF revenue solely
to state purposes. and Of other kinds
solely to local purposes For instance.
the state would take all corporation
taxes. all license, taxes now payable
to the Commonwealth (without inter
fcring with city anG town licenscs).
all income taxes ana the capitation
taxes now specified IN the Constitu-
ton. This would leave to the cities
and counties all taxes on real Estate
and personal property. which they
could assess at | per cent or 100 per
cent Of it's fair market value. as they
pleased. and could put their local tax
rate at any figure deemed desirable,
to secure tho revenue requisite for To-
cal purposes. without affecting any
other locality.
Now, such a plan by itself would be
nonworkable. for the reason that the
state would not receive sufficient
money to conduct the affairs of gov
eminent. pay the interest OH the pub
lie debt. pay pensions and defray the
costs of crimina, proceedings.
For this reason, the Auditor would
divorce tangible and intangible prop
crty. He would give to the state tho
taxes OH money STOCKS. bonds. mort
cages and other evidences of debt.
and to the counties and cities the taxes
on real estate and visible personal
property.
State Tax on Intangible Property.
Calculated on the present basis this
would still fail to yield the necessary
revenue to the State. But the Auditor
believes that only a small fraction of
intangible personal property is not
assessed and taxed. and that IL ONLY
would come TO light. For instance.
the man with money In the bank would
not find it worth his while to pcrjure
himself TO save a mere tax Of 35 cents
on The Sl00 or about 1-3 OF per cent,
a year for the support of the govern
nent under which he lives The same
thing is true of the owner Of bonds
and mortgages who. now unwilling
TO give up 2. per cent of his holdings
per year in taxes to state and city,
would be entirely willing to pay l-3
OF per cent.
SO much OF this sort OF property
would be brought to light that the
Auditor believes il might yield sufli-
cient revenue. under an equitable Sc
gregation plan. TO replace the loss to
the state from giving up the taxes on
realty and visible personality.
OF course, many other details arc to
he worked out Certain localities
would be losers under such !, sys-
tenn for the time being. But they
would have the compensation of not
own expenses, pay their proportion OF
the States expenses and supply the
deficit created by those places that
refuse to assess property at more than
a bare fraction OF its value,
Favors Discussions.
Auditor Moore is much pleased al the
disposition TO held meetings to dis
cuss tax problems. He welcomes the
suggestions OF associations OF bus
mess men, real estate dealers.
chambers of commerce and any
other collection OF citizens upon
whom the tax burdens fall Most
heavily. From such discussions. he
thinks. the solution of many tax diff
cultics must come.
But he does not believe that there
should anywhere be a disposition to
evade the existing law merely because
1t may be hurdensome. Such action is
not, in his opinion, the part OF a patri-
otto citizen. who. instead. should adj
dress himself to a solution. Nor does
he think very large amounts of money