The broad ax. [volume] (Salt Lake City, Utah) 1895-19??, 1916-09-23

Escarc CT i1-aF9iCfe FiOPCfS Na9SS
From Taxation and Increased Tax
grrGen on Real Estate Caused by
The Uniform ity Rule.
CiIiyclis of Illinois will have the op-
,,or+,t; i,v at the November election to
chance the basis of the present tax
system and make possible modern and
lust tax laws.
The last general assembly in re
sponse 10 widespread popular demand
submitted an amendment to the reve-
nile article Of the constitution and
thus put responsibility for tax reform
souarCly up to the voters.
Taxpayers i'll Illinois have long been
aware that the Illinois system was
fmrcrfcrt. They have known that it
MIS- nut Il good revenue producer. At
IKE same time, in too many instances,
they have realized that it is Unfair
resulting in injustice-and the spec
tacIe of laws defed. Very often, in
fact, generally, our laws are just and
practical. and when not enforced the
failure arises from official neglect. But
our tax laws are not of the enforceable
class This is due to the fact that
since they were enacted the property
conditions they were intended to act
upon have been transformed by eco
nOmic changes.
In 1910 the total full value of all
kinds of property in the state was less
than S60,000000. The state tax rate
was 20 cents on each 500 valuation.
At the present time the full valuation
of all kinds of property in the state is
about SSOO0.OO0.O00. The increase has
been more than hundred times. And
the tax rate is two or three times as
great as it was in 1910. The total re-
ccipts of the state treasury for 1910
was little more than 100000. Now
they are nearly one hundred times as
much.
1916 Taxes on 1918 Basis.
The constitutional requirements in
relation to the assessment and taxa
tion Of property now are the same as
they were i'll 1910. In fact, they are
the same as they were in 1918. when
the total revenues of the state were
only about 10000 a year.
When our taxation system was
adopted there was little or nothing in
the state except lands and the visible
personal property of the agriculturiSt.
The constitution and laws were built
upon the suppOSitiOn that all property
WAS visible and that it would remain
50 In fact. our constitution is tangi-
hle property tax conStitutiOn-and the
courts in interpreting it have tended
TO make it even more so.
In the economic development of Illi-
nOis new forms of property have
arisen. These are known as intangible
values. They are made up of sec
OnGary forms of value. There are mort
cages, money and credits. bends. stocks
Of Out-of-Statc corporations. notes and
other evidences of interest or debts.
Practically none of these Is taxed.
And as a class they constitute the in
tangible values which have developed
as the state has grown from about a
quarter of million of taxable values
in the SOS to nearly eight billions
Intangible Property Hard to Tax.
The law makes it the duty of the as
SCISSOR to discover and assess these
values. The very fact that they can
not he Sepn-like lands. railroads. fac
toricS-makeS ii impossible to discover
and assess them 10y the same clerical
methods. Drastic inquiSitorial methods
would have to he employed All citi-
"enS would have To hc hailed before
he assessor and made tn tell every I
thing-aS persons of taxable incomes
now have tn submit tn qurStinnary by
federal inspectors. And if this were
done what would hc the result? More
taxes? by no mCaIS. The person as
SrSScd once on his intan"ihlcS would
simply move them to another state.
Where taxes on them would not he
,nnfiScatory of third or more nf the
income. as they are i'm Illinois
The pendin" amendment will make
i possible for the legislature to enact
Jaws providing assessing and taxing
methods for intan"ihlCS that will he
:~ reasonable as other states have
adopted. BY this means intangible
values will hC retained In the state.
VIII he induced (" present themselves
Tor taxation. the revenue will be in
"rCaScd and the ::SSCsSin" and taxing
machinery made simple and workable.
Necessity of voting for the amend
nrnt. because it must have a majority
OF all the votes cast November 4, Is
urged.
Tax Amendment Committee,
4 complete organization for cduca