Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-02-14
TAXATION CENTER
OF ALL QUESTIONS
State Legislative Problem of Pro-
viding Revenue to Avoid
Deficit.
SEE $1,O0o,OOO SHORTAGE
Appropriation Bill Waits Until
Vital Issue Has Been
Settled.
SEE s1,O0o,Ooo SHORTAGE


After remaining in eclipse for nearly
five weeks the tax reform question has
emerged as the state Legislative prob
lem OF ranking Importance. pnd for the
next two weeks II promises to hold the
center of tho stage in the General Az
sernbly. The spotlight Will bc contest
ed by the Mapp prohibition bill and the
coordinate college ueasure---both on
the calendar and awaiting action---but
the question of providing additional
revenue TO stave off q deficit OF ap-
proxtmatciy sl.oOo.oco in 1917 promises
to hold first place.
Until the tax question Is settled it
will be impossible 10 frame the appro-
prlation bill. since the liberalitv OF its
provisions for schools. colleges and va
( rious other public institutions will be
determined by tho amount OF revenue
that the State will receive in the next
two years Chairman Brewer. Of III"
House Appropriations Committee. said
last night that while his budget for
1861 is practically complete the APP
propriatons for the year following will
not be determined until the question of
additional revenue is dciiuit"ly s.t-
tied
GIVE All CHANCE
TO HAVE HEARING
Numerous hearings have been held
bS both Finance Committees with the
view OF arriving at solution of tho
vcXinS revenue problem. FOR the most
part, these hearings have been in cx-
ecut!ve session. The policy OF these COM
mittccs IN closing TO interested parties
tho discussions dealing with proposals
10 increase their taxes has been sharp
~ criticized IN many quarters. To the
criticisms TIC committee members
have uniformly replied that tho execu-
tive sessions were held for reasons o,
-Mpcdiency, and that AT the proper
timo everybody Interested would be
given 4 hearing.
The Senate Committee on Finance
has taken step In this direction by
liking several public hearings this week
for n discussion OF the various tax in
creascs that have been suggested. Th.
first OF these will take place At
o'clock Tonight in the courtroom OF the
state Corporation Commission. !, will
deal only with tho proposed increase
porations and probably with the sug-
-csted reasscssmpnt OF railroad prom.
cr;y.
PUBLIC DISCUSSION
on OMITTED TAXES
Counsel .Or thr railroad companies.
"ho were denied admittance TO the
Gearin:; Of the Senate Finance Com
mittcc on Friday night. at which time
81,
mission ana Governor Stuart laid before
The committee their advice on the pro
posed increases. were inclined TO crti-
cize tho course that has been pursued
IN this connection, pointing out that
ihoy viii be expected to defend their
cause tonight without having been
given tho usual opportunity of hearing
The reasons advanced in support OF the
franchise tax increase
Tomorrow night the Senate Finance
Committee will hear a public discus
sion OF omitted taxes and the tax on
capital invested in business and real
estate. On Wednesday night the same
committee will hold public hearing
on the proposed increases in the tax
on merchants and the tax on light. heat
and water companies. All hearings
Will take place at o'clock in the
state Corporation Commission court
room.
MISTAKE: or 1915 MUST
HE RECTIFIED Now
Students OF the partial segregation
system put into effect by the spccial
session OF 1915, including the chairman
of the House Finance Committee de-
clare II to have been the cardinal sin
of tho special session that 1t made the
rates too low. The impending deficit
of 1917. il is stated. is in no way due
10 the weakness OF the partial segre-
cation scheme, but solely TO the fact
that the General Assembly ovcresti-
mated the income from some sources,
and in this manner led to frame
Il tax schedule on too low gear.
Now that The State is confronted with
the necessity Of correcting its mistake
OF 1913 by raising tho rates on several
tax subjects which. in the opinion of
the State Advisory Board on Taxation
arc not bearing their proportionate
share OF the tax burden. there is oppo-
sition from every quarter.
MERCHANTS MAKE PROTEST.
AGAINST ANY INCREASE
From the merchants Of the State
come perhaps the strongest protest Of
all. These make tho claim that, while
The tax rates on various kindred sub
iects were materially reduced by the
special session. the merchants taxes
were left virtually as they were be-
fore. The proposal now to recast the
merchants tax schedule so as to in
crease the amount received from the
larger dealers is being strongly op-
posed, and large delegation will be
on hand on Wednesday night to pro-
test against the increase
the merchants. the Governor and other
members Of the State Advisory Board
on Taxation, including state Auditor
Moore. hold the belief that they have
no real grievance, and that as a class
.hcN haNn hceM subjected to 10 dis