Evening journal., 1917-03-07
LEGISLATURE Gives
TAXATION HEARING


Layton was vague as to what bill he
referred to. and when later asked
what bill he had in mind he said,
"the income tax bill" He did not eI-
plain his objections TO the bill. The
only income tax bill before the House
was introduced by Representative
Connolly.
Robert G. Houston. Of Georgetown. the
next speaker, explained the provisions
of each Of the two bills lie said the
graduated inheritance tax bill viii pro-
vide revenue for State purposes. The
graduated rate. he said, is the same as
the New York law, except the Burris
bin eNempts 5000 and the New York
bill exempts $1,000.
Mr.. Houston said the bills are not
drastic and are equitable. He claimed
that for centuries land and livestock
have been bearing the burden Of taxes
for State purposes in Delaware, and
that Il is not sufficient to meet the de-
mands
J. Hall Anderson. OF Dover. also
spoke Of the great need OF a revision
Of the tax system He said the State
is rot assured OF receiving always the
present large income from State char
ters, and n Wilmington should go
dry" another large source OF income
would be taken away from the State,
and under the new State Highway De-
partment bill all the automobile Ii
censes would also be taken from the
State.
lie pointed out that H. would be nee
cessary 10 raise money by some other
NuN l.
nue. referred to- Mr.. Anderson also
attacked the income tax bill referred
10 by DR. Layton. He said he saw
danger OF a red herring hcross the
trail and called the bill a red heW
ring BILL He said the rate OF 30
cents IN the income tax Is SO small It
makes the bill "hoax." Another
objection which Mr.. Anderson said ne
has to the income tax bill Is that all
the revenue from 1t would CO to the
state and none to the counties.
Thomas /. Parkinson, director OF
legal research at Columbia University.
who assisted In preparing the two
bills, also made an address and an
swored number of questions asked
by members and visitors The invest
ment tax bill, he said was copied after
the Pennsylvania law.
Representative Connolly asked saw
eral questions relative TO the exemnt-
ing OF mortgages from taxation under
the bill, but the speaker, while admit
ting IL might have the effect OF in
creasing interest on mortgages now
under per cent, he did not think
they should be exempted. Mr. An
derson claimed nine-tenths OF the
mortgages now bring c per cent. and
could not be increased.
House Bill No. 339, introduced by
Representative Burris. providing fol-
an inheritance tax, sets forth the fol-
lowing schedule OF taxes on property
within this State. whether belonging Ia
inhabitants OF this State or not, which
passes by viii or by the intestate laws
Of this state TO a parent. grandpar-
ent, husband, wife, child by birth or
legal adoption or lineal descendant OF
the testator:
On values Of from $4,000 TO $4,000,
one per cent. tax.
On values Of from $4,000 to $780,
600, two per cent tax.
On values exceeding 100000, and I'D
to 100000, three per cent. tax.
On values exceeding 100000 four
per cent. tax
Where the property or interest in an
estate passes for the use of brother
or sister, either OF the whole or half
blood of the decedent or of his par
ent or grandparent, or a lineal des-
cendant OF any such brother or sis
ter. the tax shall be as follows:
On values from $500 to S25, 1000, two
per cent. tax.
On values from $4,000 to 100000,
three per cent. tax.
On values from 100000 to 5000, 900,
four per cent. tax.
On values exceeding 5000, 900, five
per cent. tax.
In other cases the tax shall be 1--WE
per cent. on estates ranging from $500
TO S1o,OOO; six per cent. on estates
ranging from $4,000 to 100000; sew
en- per cent. on estates ranging from
100000 TO 100000, and eight per
cent on estates in excess OF 5000 600.
Requests for religious, educa.
tional and charitable purposes are ex-
empted from tax.
Would Tax investments.
House Bill No. 500. introduced by
Representative Boyce, provides for a
tax on investments for county pur-
poses at the rate OF three mills on
each dollar OF the value of the in
vestment. Investments subject 10 taxa
ton comprise mortgages. money from
solvent debtors on promisory or judg
ment notes, articles of agreement anC
documents bearing interest includin,
interest bearing time deposits In am
bank, trust company or savings fund
society, within or without this State
public loans. except those issued by
the United States. bonds or other Sc
curities for the payment OF money
issued by any corporation, shares OF
stock In any bank. corporation, part
nership or other association, created
under the laws OF this State. or OF
the United States, or any other State
or Government, moneys loaned or in
vested elsewhere than within this
State, annuities, mortgages, judgments
and recognizances OF record in this
State and owned. held or possessed by
non-residents or this State. and all
other interest bearing moneyed cap
i ital.
The exemptions include notes or
commercial paper. discounted or ne
souated by any bank or trust COM
pahy, nvestmentments made by any
5 ouaiulng and loan association. or any
s,Nlnss institution having no capital
: seocK' Investments held. owned or nos
-eSs'e oy any FIRE company. dremen,S
e association, life or fire insur-
sneS corporation having no canitaf
soocN secret OF beneficial society la