The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1917-01-17
THE lax REFORM.

much needed in rates, or particular
ly in values, but in more rigid com
pulsory assessment laws. To reacf
property that is not listed at all
Classification of property for taxing
purposes has never strongly appeal.
ed to us. However, the voters have
in the proper way, authorized the
lawmakers to classify and apply a
higher rate to one class than is a.
piled to another. From an exami-
nation of the proposed bills, we are
convinced that, in the classification
of property and the application of
rates, the Commissioner goes far be-
yond anything the people dreamed
of or will ever approve.
The farmers and other citizens,
who have their funds invested in
lands and other tangible property
from which they derive a support, are
called upon to pay all the taxes for
county, town or city, and school pur-
poses, and then pay the same rate
Tor the support of the State Govern
ment as is paid by the bondholders,
money-lenders and stock-specula-
tors. 1t matters not how much of
this intangible property is held, the
owners contribute nothing on it to
support the paupers in the almshouse,
to keep up the roads, to pay the sal
aries of the County Judge, County
Attorney School superintendent, or
the policeman who protects their
families and property.
Then the man who converts his
property into cash and piles it up
in bank contributes practically moth
ing Go cents on the 5000 to the
support of the State government
and institutions, and nothing at all
toward the support of the county,
town or school. Will this character
of discrimination encourage devel-
opment of the vast resources of the
State? Will it have a tendency to
stimulate trade, and put money in
circulation and build factories. or
will it be an incentive for the with
drawal of money from wealth-pro-
ducing investments to be placed in
banks to earn interest and practic-
ally escape all taxation?
The contention is this will cause
the listing of the money in banks.
Whether it does or not, the bill con-
tains a provision by which listing is
compulsory The same process could
be applied successfully should the
rate on money be fixed somewhat in
proportion to that upon other prop
erty.
1t is claimed that millions in
notes. stocks, bonds and money es-
from hiding the owners must be
coaxed by such discrimination as
suggested; that much more intangi-
BILE property will appear if there is
but little taxes to pay. Naturally,
such a law will increase the intan-
gible property. Whenever you prac-
tically relieve one class of property
from taxation, and thereby necessa-
rily increase the burden on another
class. there will be a shifting of
funds from the heavily taxed to the
slightly taxed or nontaXable prop
erty.
To offset this exemption to the
owners of millions of intangible
property from local taxation, the
bill provides that the farmer may
have his implements exempt from
county and school tax. Why. the
exemption allowed to housekeepers
under the constitution. according to
the last report of the Board of
Equalization, amounted to two and
one-half times the value of all the
agricultural implements and house
Hoiu soOus III lue oldte combined.
That report shows: agricultural i'm
plements. $2,2SO.497; household
goods. $14,663.3S2; exemptions to
housekeepers, $41,1S2,725.
Another discrimination, which we
believe Objectionable, is in favor of
short and against long loans secured
by mortgages, and long time pur-
chase money notes. These securi-
ties. running as much as three years,
are the only forms of intangible
property taxed in addition to Abe
State rate. The United States Gov
eminent. through the operation of
the Farm Loan Law. is trying to
help the farmer by granting long
credits and easy payments. but un-
der this bill, long loans are actually
penalized.
As an additional inducement to
the tax dodger to list his stocks,
bonds, &C., tfor State purposes only !
the nroDosed hill would ralaaSa hin,