West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1915-03-11
REFUTEs ARGUMENT
Senator Morton Shows Clearly State
Deficit was Not Caused by tProhIbI.
tion Amendment and Coal ktrIke--
Figures are Given

In a statement made i'm the Senate
during the consideration OF the bill i'm
posing corporation income tax. SEN
ator f. III. Morton, of Webster. con-
cisely and convincing refuted the
argument that the loss of revenue
from prohibition and the cost OF the
kanawha coal strike OF 1912 and 1913
made 1t necessary to raise more reye
nue. In order to meet a deficit caused
Dy the prohibition amendment and the
strike In question. That argument
was resorted to last Sunday when the
| governor in the course of a statement
said: we have been retarded In our
Efforts to wipe out entirely the system
| or direct taxes for state purposes, by
reason OF unusual conditions which
have prevailed. sack as the half mill
lion dollar expenditure in the Ka-
nawha valley strike district and the
| loss OF license revenue to the extent
OF S650,000. but there Is no reason WHY
we should not recover from this condi-
ton and in the course OF a compare
lively short period fulfill the promise
made to the people by eliminating the
state levy"
1t is rather significant. with refer
ence to the governors statement. that
the nearest approach to fulfilling the
promise made when the Dawson tax
laws were enacted that the state tax
would be wiped out, was in 1912, when
Democratic legislaturem ade IL DOS
sible to reduce the state levy To one
cent.
senator Morton's statement follows.
The following figures taken from
oInclal sources, seem to make II very
clear that a large increase I'm state
revenues is not necessary at this time
The loss of revenue from the opera-
ton or the prohibition amendment
winch went into effect July /. 1914.
ana the cost OF the military activities
occasioned by the coal miners strike
OF one thousand nine hundred and
Twelve and one thousand nine hundred
ana thirteen are the principal excuses
Tor the existing deficit and the demand
| Tor more taxes. These same figures
prove that prohibition is blamed for a
much larger loss than IL entailed, and
| that the total cost occasioned by the
| strike, by far the larger part was paid
| before the beginning Of the present adj
ministration.
The Actual Loss of Revenues from
| Prohibition ana Coal Strike
TOTAL cost OF strike and
martial low governors
message, p. 10 $319, O55. 80
Paid on this amount under
the proceeding admins
tration by special appro-
priation of money then in
the treasury (Ch. z, acts
1879 ................... 244.044.42
Balance to be paid out OF
| the revenues of the pres
end administration 49,. 75.OlI 81
| Prohibition did not bring as
| large a loss of revenue as
was anticipated, for the
receipts from liquor licen-
SEES in 1913, the last year
they were granted. were
| 1896, 250.57 (Aud. Rep. D.
| S2), and the maximum
loss from these two
causes could not have
| exceeded ................ zoo, 19O.45
To fill up this hole of sos, 190.45
there has been levied for the two years
embraced in the auditors current re-
port the sum of S1,700,641.75, of an
increase over the state levy OF one
thousand nine hundred and twelve. II
has really been more than this for the
levy OF 1914 is computed on the valu-
atoms OF one thousand nine hundred
and thirteen, while the valuations had
increased somewhat for the current
year. The state levy of one cent for
one thousand nine hundred and twelve
produced a gross sum of Sill, 1872 2S
TAX CONS Rep. p. 81 In one thou
sand nine hundred and thirteen, the
levy was increased to six cents on the
10000, which levies produced the fol-
lowing gross increased taxes, not COM
putting delinquencies and cost OF col
| lection:
The increase of five cents
in the state levy for 1913
on a total valuation of
| s1,243. 315, $4,000, produc-
ed a gross increase over
the taxes of 1912 to the
state fund of .........s621 ,657. II
| The increase OF nine cents
| in the state levy for 1914.
over that of 1912, based
on the same valuation pro
duced a gross increase over
the taxes of 1912 of. ..1, lis, 1888 .9S
| Total increased taxes al
ready levied TO pay $780,
19O45 .................1,74O.641.75
To this should be added the
deficit for the fiscal years
1913 and 1914, as estimat-
ed on page II OF the gov
ernor's message NM. 624 .216.O7
| And IL shows that the legis-
lature has provided. and
| is asked to provide the
sum Of ................2,S64,S57.s2
| To compensate for above
loss OF revenue, which
could not have exceeded zoe, 1902