The broad ax., 1916-09-30
TAX LAWS PERMIT
ESCAPE OF WEALTH
Secretary of State and Attorney
General Issue Official State
ment as to Proposed Change.
NEEDED REVISION POSSIBLE.


Method Which Allows Millions to
Escape"
There is no good reason why any
person-even although he is not gen.
orally student Of such matters
should not fully understand the pend
ing tax amendment to the Illinois con-
sdtution. 1t is simple, and, In fact, in
teresting and worthy of study.
The amendment is printed below. in
full. As will be seen 1t does not in
sert into the constitution anything un-
usual or revolutionary. It merely
takes out Of the constitution the re-
quirement that the general assem-
bly, shall observe the rule of uniformity
IN taxation. That is to say, the legis-
lature cannot classify the different
Kinds OF property according to kind
and put different rate on each class.
The pending amendment simply re-
moves this restriction from the con-
sutution. but only as to personal prop
erty. 1t does not affect real estate.
The amendment follows:
Text of the Amendment.
Article TX, Sec. 14.-From and after
the date when this section shall be in
force the powers Of the general as
sembly over the subject matter of the
taxation OF personal property shall be
as complete and unrestricted as they
would be If sections one, three nine
and ten Of this article of the constitu-
ton did not exist; provided, however,
that any taS levied upon personal
property must be uniform as to Der
sons and property Of the same class
within the jurisdiction of the body i'm
posing the same, and all exemptions
from taxation shall be by general law.
and shall be revocable by the general
assembly at any time.
The secretary Of state, in compIi-
ance with law, has sent to county
clerks throughout the state state
ment-5approved by Attorney General
Lucey-for use in election notices, ex-
planning the amendment. After quot
ing the sections Of the constitution to
be affected the statement says:
"The only basis upon which taxes
may be levied is that Of the valuation
OF property. If the proposed amend
ment should be adopted. said section
1 of article 8 would be changed by the
amendment so as to permit the legis-
lature TO enact laws which would sub
stitute different and suitable rates and
methods for the just and sure taxation
Of each of the various classes of per-
Sonal property. insteaG of the present
so-called uniform" method, which re-
suits in the escape of millions from
taxation.
Improved Tax System Possible.
Laws passed pursuant to said
amendment may provide for the as
sessment Of intangible property at a
lower rate than other forms of prop
erty, it being a matter Of common
knowledge that comparatively large
part of the intangible property Of this
state escapes taxation. Therefore, tan
gible property, such as real estate and
various forms of personal property
must bear 'sproportionate burdens.
The proposed amendment would af-
feet section 3, to the extent that laws
may he passed by the legislature.
classifying the personal property which
may or may not be exempted by the
general assembly, provided that an ex
emption made must be by general and
not special law, and shall not be con-
tractual but revOcable at any time.
Under the proposed amendment Sec
lions 9 and 10, would be affected by
the amendment to the extent that laws
may be passed by the general assem-
bly, permitting municipal corporations
to levy taxes on personal property &C
cording to classes, in such manner as
the general assembly may provide by
law as it may elect.
'The general assembly may provide
by law different rate of tax on diff
ferent classes of personal property
which the general assembly. as it sees
fit, shall provide for by law, but the
tax rate shall be uniform as to all
property in each class"
Practically there is no opposition to
the misunderstanding none that is
likely TO be actively effective But, in
this there is danger, for the reason
that the amendment may be beaten.
even though it have more votes cast
for it than are cast against it. This is
because the constitution provides that
the amendment must receive a major
ity of the votes of all the electors vot-
ing at the election at which the amend
ment is submitted.
The Illinois Constitution says: THE
General Assembly shall have no power
to propose amendments to the
same article oftener than once In four
years" The pending amendment to ar
ticle IX-Revenue. whether adopted or
rejected. prevents the submission OF
any other lax amendment until 1920.
It Is recognized in Illinois. as in other
states, that needed tax reforms rela e
almost IL NOT entirely IN DarSonaI