The Oskaloosa herald., 1915-03-04
TAX PROBLEM
A BIG QUESTION
CONSTITUTIONAL AMENDMENT
TO PERMIT OF GLASSES"
MEANS STATE TAX COMMISSION
There Has Been Little or No Discus.
sion Of the Matter by Newspap-
ers or People. It 10 Part Of
Program of 'Reformers'

Des Moines, Ia, March 3,-One OF
the biggest questions yet before the
present Iowa general assembly will
come up for disposal shortly after
the re-convening next Thursday, a
question that has been discussed but
little in newspapers or in the legis.
latiye halls, yet one of the most vital
to people generally for it strikes at
taxation.
This i3 the joint resolution propos.
ing a constitutional amendment to
permit the taxation OF classes" of
property for state purposes only.
When the effect of the passage of
such a resolution is fully realized it
promises to arouse a protest quite as
emphatic as that made two years
ago against the proposed state tax
commission" In fact it is said by
some that the passage of this conSti-
tutional amendment resolution is but
an indirect way adopted by the same
reform advocates of getting tax
commission. Should such tax class
provision be made il is said the ar
gument might be raised that only
experts" could properly classify pro-
perty for taxable purposes and hence
a commission would BE- necessary.
1t is currently reported that the
purpose Of the resolution is to permit
the executive council to tax railroads
and telegraph and telephone com.
panies for state purposes only. But
the resolution Is of such a blanket
nature that any class of property
might be designated for state sup
port tax. Banks might be declared
such a class, so might insurance
companies, moneys and credits, live
stock or any distinct class.
One objection already heard in the
corridors against the measure is that
It is class legislation. Another is that
1t is too indefinite. Should the pro.
vision for class taxation be made
there is nothing said as to how the
proberty would be taxed. IT railroads
were designated as the class IL is not
provided whether they should be tax
ed on gross earnings, capital stock,
so much per passenger or on some
kind of franchise tax.
Iowa once taxed railroads on CAPT
tai stock, and afterwards on gross
earnings but abolished both these
methods as unpopular with the peo-
pie and adopted the present valua-
ton plan.
Protests against adoption of the
resolution are beginning to come
from different parts of the state, the
first being from the larger cities and
counties which would be hardest hit.
The Nonpareil in Council Bluffs in
an article recently stated that city
would lose $65,00O per year in rail-
way taxes should the resolution be
passed. Cedar Rapids, Dubuque, Mus
catine, Burlington, Oskaloosa and
other Iowa towns would be effected
in large scale.
Should the plan Of taxing railroads
for state purposes only be carried
out there is no county in the state
but would suffer 1t would mean that
none of the corporation tax would
be given them. Since 1872 railroad
taxes have been distributed among
the counties AMI many have depend
ed largely upon these taxes for the
support OF their schools and their
local government.
In 1913 the taxes paid by railroads
in Iowa amounted to $3,138,504.
The proposed change makes no re-
striction on the state not to levy an
additional tax on general property
for state support Wisconsin provid-
ed taxation OF railroads as a class
for state purposes only ana raised
over six million dollars taxing them.
But the system seems to have en-
couraged extravaganza for in addi'
ton to the class tax the general
property OF the state has been taxed
by an additional levy to raise anoth
er six million for state government
support.
| The claim that the constitutional
amendment resolution is a part oil
the program of reformers to get a
state commission to handle taxation
is given some support by the fact
no tax commission bill has been in
ltroduced at this session. The protest
against a tax commission two years
ago was so violent there would be
little hope for such a measure. The
proposed amendment however. once
adopted would naturally call for ap
pointment of commission" to class
the property for state taxation.