Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1916-01-13
|MANUF ACTURERS
/. AND TAXATION
State Advisory Board Files
First Report on Pre-
sent System
WANTS AMENDMENTS
Would Make Provisions as to Tax on
Capital in Business Equitable, Just
and Fair"


cally upon the new tax system tha'
has been in force since last March
the State Advisory Board of Taxa
ton in it's first statement to the Gen
eral Assembly yesterday, advised
the Legislatu1e to address itself with
care to the amendment of the pro-
visions relating to |the taxing OF
manufacturers, with the view OF de-
| yising a law that shall be equitable
just and fair
In making this recommendation, the
board expressly refuses to admit
however, that manufacturers in this
State. as has been claimed, are, as a
class, overtaxed. The present law, the
board believes, cre..es a hardship on
some classes of manufacturers, and
for this reason there should be rea-
sonable revision.
Complaint against this feature Of
the new tax system found expression
last month in concerted movement
of leading manufacturers directed to-
wards impressing the advisory board
with the necessity for relief. A meet
ing was held in Richmond and a COM
mittee was designated to take the
matter up with the board.
Specifically, the manufacturers
complained of the administration OF
the law with reference to the taxa
ton of their capital. 1t was claimed
with considerable force and persis-
tency that only net capital of manu-. manu-.
t:facturers should be taxed, and that
against their gross assets they should
| be allowed to offset all bills payable
or debts due by them. 1t was claim
ed that under this plan manufactur-
ers would be taxed upon their IN
tangibles in the same way as owners
of bonds are taxed, such owners, hav-
ing the right to deduct their indebted
| ness fro mthe total value Of their
bonds or debts due them.
"This board has been impressed by
this claim" the advisory board re-
ports to the General Assembly, "and
vet is of the opinion that the manu-
facturers in this State are not, as a
class, overtaxed, and that any plan
which may be devised should yield
revenue in excess of the amount as
| sessed for 1916 S390,OO0 in round
firures-ag gainst this class of tax
payers. the total assessed value, be-
ing, in round numbers, S60,000,000 on
which the State rate of taxation is
65 cents on the $780,"
To the suggestion that a license
tax based upcn aggregate sales be
substituted for the tax on capital, the
board replies that it cannot at this
time recommend this plan, because
it is without accurate knowledge as
to the aggregate sales of the manu-
facturers, and is hence unable to sug-
gest what would be proper rate.
TIE board believes that there is
merit in the suggestion that manu-
facturers be taxed on their net CAPT
tai at a rate greater than the rate
on other intangibles. In this way
the board suggests, the profits of the
business could be made to bear theil
fair proportion of the public burden.
,"Still another suggestion" the
board reports, concluding its refer.
ence to this point, "is that. the nor
NAL, or average capital used by thu
manufacturer, whether borrowed OF
not, shall be ascertained ,and tha
upon this amount of normal capita
4 the proper rate be applied"
rrr1FT1f