The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-02-16

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VII safekuntx5 60 NJ ez1le1n - =
have n. N1<t H<$Nn1411Eu 4 n iMpe<l
snf frefuree. ~ x9fxu11co1ed ~ q
state ads&eefy boor1 10 that Ne VI
nrt only hold ter taxation fhe tft5
eoe.eee of intangible and ttk zoe. %
Of money now listed ~ che tai beck
but add yet many millions that shout
have gone on the books this year.
Governor Makes guxgest3cns-
II here reinforce the recommends
tons recently made by the state 40
visory board as to chAnges and r.
OF rates on certAi
classes OF intangible property. notin
that the recommendation OF an In
creased franchise tax on ordinary cor
porations has been withdrawn on &c
count OF information derived from tn
Office OF the State Corporation Com
mission. ] also modify tlDc recUsnmscsl
dfation as 10 the nscrchnntss 1icCnsc "a
going 10 the state 20 ~ - provide
uniform rsafc Of twenty ccnts on .
purchases above 1a,O00. without n
gard to amount, and will hero repes
the opinion, which urged when IN
license tax WAS fixed In u
segregation law, that there is no roo
reason why purchases In Inr1
amounts should enjoy lovrcre
license tax.
.If the recommendation Of the
State advisory board rs recast afe
adopted, we should realize addt-
timiai revenue OF approximately
5000. 900. of which amount o350,-
900 would come frtHn the natural
increase under existing rates from
subjects other than infanGib1cs;
S225,000 should come from In
crease OF iutangil,Ies and money
listed for taxation Mt the present
rate: 500 900 from increase In
manufacturers: So. 200 from WA
ter, heat. light and power conn
panies. 10 which have heard no
opposiflon; $4,000 from the In
come tax on corporations. allow
ing deductions on incomes Of In
dividaals so far az derived from
corporations paying such tax:
$4,000 from reapportionment Of
the tax on bank stock: Sf8S, 0Go
arising ~ follows: $4,000 by
raising the minimum on the mer-
chants license tax from - TO
$40; SIS. 600 arising from the APP
pIication OF the twenty cent rate
straight instead OF 4 reduction to
ten cents on purchases above
100000 and SIS, 900 arising from
increase in returns Of purchases
under system which requires
report to be kept OF all purchases.
The only actual net Increase Of
tax involved In the foregoing plan
Is on The franchise tax OF water,
light. ETC., companies amounting
TO $27 900 as originally proposed.
Decrease Where Returns Were Tru
I've feel that the change In the
minimum license tax on mer-
chants Is justified by the fact that
of a total Of $4,000 merchants in
Virginia, 5000. or one-ha6. re-
ported this year that their total
purchases OF goods were less than
$1,000. on which they paid
license tax of 81. and that more
than 5000 merchants reported
purchases between $1,000 and
$4,000, on which they paid SO,
leaving less than one third Of the
whole number reporting pur-
chases I'm excess OF $4,000. The
increase OF $4,000 In revenue
provided by retaining the twenty
cent rate on purchases above
100000 restores part OF the tax
taken OF by the last General As
SembIy and is much more than
balanced by The relief suggested
by ninety-fiye cent rate on
capital. Merchants who have made
truthful returns OF taxed capital
and purchases In past years will
have their taxes reduced under
this plan, and others cannot he
heard tD complain.
THE foregoing estimate Ia conslde
ed conservative, but is predicated
the preservation or the principles
segregation as already adopted. al
the enactment OF such additional le
isiation as may be necessary to
vigorous, fearless and unfaltering a.
ministration of our tax laws espeC
aIiN those which look TO the discove
and assessment Of all classes OF pro
erty which have heretofore ESCAPE
assessment III such legislation 10 n
enacted we must either place ne
burdens on property which has
ways been assessed and taxed. Or ia
! the reality of deficit instead OF Il
spectre now agitatins and exciting G
lchronic opponents OF the segreEati'
TACT and all that it stands for.
Taxable Subjects Sufficient,
I'VE should not seek guidance fro
those who have unbroken records
opposition TO every effort that h
been made To discover hidden taxat
property. Such men should bri
forth fruits meet for repentance rath
than instruction. | am aware that I
difficulties of uniform taxation do n
arise from the shortcomings OF a.
| one class of taxpayers. 1t is for
to correct them az rapidly as possib
/ having special regard at this time
4 the most Immediate and obvious {
tenders
I Recognizing the obvious fact
that the loss OF 100000 at this
! time from liquor licenses Is
| serious one, II Is none the less
! true that there arc taxable sub
jctfs In Virginia sufficient to mcct
! our governmental requirements
| after losing this revenue. The
segregation law was framed after
due notice OF this loss. and with
the expectation that this Cen
erai Assembly would legis1atc
with reference to it.
Il have sought to present for 20
- fr.,. ft,x tr,fr xavy