Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1916-12-09
URGES REPEAL OF
.. INCOME TAX LAW
Auditor Howard Declares 1t
Simply Means Double Tax
alton as Stands Now.

Il. B. Howard, state auditor, who is
res ponsible for the collection Of the
tax. and who has been studying 1t scri-
ously for the past two years. Mr..
Howard says that he finds that every
person who pays an income tax has
in some form or other paid another
tax either on this income or on prop
| crty or commodities from which the
| income is derived. This in his opinion
Is no more nor less than double taxa
| ton.
| Il believe our income law has re-
suited in a considerable amount Of
mcncy being invested In states not
| having this law that under other con
ditions would have been invested in
Oklahoma.
I'VE find very few instances where
an income tax is paid that other state
taxes have not been paid upon the
properties producing these incomes.
or upon the Incomes selves. This
hCing the case state income tax
amounts practically to n double taxa
ton" The Wisconsin income tax law
is referred to as preferable as it takes
the place of n personal tax.
Howard Explains Stand.
81 relieve the coming session Of the
legislature should repeal the state in
como tax law as at present consti-
tuto d." said state Auditor Howard yes
tcrdav cor at least it should be
modified in many ways. ON first thot
many might be surprised at this state
m'nt, but an analysis of the situation
convinced me that II is true. | have
been collecting this tax and studying
its merits and effect for the past two
years. and my opinion on same has
been reached after a thoro study.
Means Double Tax.
"In the first place, | find that every
persOr who paws state income tax
has in some form or other also paid
another tax either on this income or
on the property or commodities from
which the income Is derived. As for
inst6uCe, the person who receives diVi-
dCnds from corporations receives the
same after the corporations have paid
both ad valorcm and corporation Ii
ccnse tax. Tho banker who pays an
income tax pays 1t after the banking
corporation has paid ad valorem
taxes and the license fee required by
the state banking department. The
oil. asphalt. lead and zinc producers
pav this income tax after they have
paid tax from one-half of per cent
to per cent upon their production
during the year quarterly. The farm
or whose income is sufficient to make
him taxable income has. before he Is
required to pay an income tax, paid a
tax iron his real estate and all his
personal property which Is used in
producing this taxable income.
consequently we find very few in
stances where an income tax is paid
| that ether state taxes have not been
paid rpon the properties producing
! these incomes or upon the Incomes
! themselves. This being the case,
/ state income tax mounts practically
to double taxation. | do not believe
II was the intention Of our lawmakers
to PISS any law that meant double
taNation. and am confident that If in
the wisdom II the coming legislature
| they decide that an income tax should
be kept upon the statutes, some
amendments relieving the taxpayer Of
! double taxation should be made to our
/ present statute.
Taxing l. Important.
"Taxation and tax rates have n
great bearing on the building up Of
the commercial, business and farming
/ interests of a state. My observation
/ has been that the present state income
! tax law is an injury instead of a bene-
| fit to tho state of oklahoma for the
reason that at the present time very
few states in the union have state
| income tax law. and | believe our in
come law has resulted in a consider
able amount of money being invested
in states not having this law that un
der other conditions would have been
| invested in the state Of oklahoma. ok
lahoma is II young state and needs 10
! have all the capital produced in this
state. and all that can he invited to
come into the state, invested here for
/ the purpose Of developing our natural
resources. building up our commercial
! interests and charging our agrlcul-
tural industry. and | believe that any
, barrier we may find TO exist should
be removed.
Il am also confident that were OBJ
/ iCCtiunahlc tax laws. such as has the
state income tax law been. were re-
moved. IN q very short time added in
Vcstmcnts in permanent oklahoma
. properties would bring to the state
very much larger sum i'm taxes than is
the present income tax law. As
matter of fact, we collected under this
( law last year about $4,000. II would
only take = comparatively small
amount of property upon an ad va
loren basis to produce this amount Of
money I'm taxes, and It would he per-
manent and not only make our tax
able valuations permanent, but help
to advance oklahoma In every way. II
we had not collected any income tax
| during the past year 1t would not have
been necessary for us to make our
/ levy for the fiscal year 1916 any larger
| than IL was.
Successful Nowhere.
| "a state income tax has so far not
proven a success in any state in the
union except the one that is in effect
in the. state of Wisconsin, and in this
case 1t takes the place OF Il personal
property tax, This, l believe, to be a
StpN forward in tho matter of taxa -