Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-02-15
"a II Coe+ - Ma;ntainno All the States Institution

the Legislature shall have power to levy tax upon intangible
personal property such rate deems wise and equitable
without regard the applied to other classes of property
The words wise and equitable in the amendment ain
significant and by necessary implication convey the Legislative
condemnation Of the old provision The logic of the amend
ent is this All property real personal and intangible ouv
ito pay Intangible property required to pay to-
much 1t ought pay only equitable and wise tax
Therefore, the old tax was "inequabe" and "unw>c' an
ought to be changed and the legislature hereby auho
ito make the change.
If this be So then follows the inquiry, What the process
by which can be done? To leave the present system
absolutely defeats the purpose of the amendment and leave
1.-The situation exactly where has been for 40 years T
fore inaction will do If action TO follow what w
are open? We able to discover but two workable plan
by which the amendment be carried into effect the
imposition of income the other CLASSIFIED property tax
Ior level rate Of say mills all kinds of intangible per
sonal property exempt One the other of these method
mot only accords with the expressed wish Of the people br
also represents the past contention Of the intangible prop
holders
But be taken into consideration t
proposal abandon the old system and to adopt one
lone Of Importance in connection with the proposal OF
level intangible property is the question Of ttc
producing capacity 1t argument carving sor
weight that without reasonable expectation that the mc
of mposts would return revenue substantially equal
that yielded by the old the arguments in favor Of chang
would be subject to challenge.
1t is evidently impossible predict with absolute certainty
what of income level rate tax tar
gibe would product But not without evidence from
which strong differences may be drawn Several have
for longer shorter time employed the other Of the
systems of taxation The first trials of the income
failures dues, said by those who studied their effect
of proper administration But the Federal income m
law. and its administration became great educator upon M
question and this system regarded with favor
In efforts to obtain information connection with all mat
coming within the duties of your they proposed
certain questions particularly inquiries owl
Citizens among which the following: ITO he CONSIDERED
lin connection with the proposal of income level taxi
this class of property is the question Of pro-
ducing capacity In 1915 the average of state county anil
town taxation all property including this elias, of popcr
Twas 23o5f This year SI469S666 intangible, taxed a
therefore yielded of $352o33o5 In your opinion
|) How much intangible personal property ncng cxcu
ton is owned in this stae?'
1t is obvious that the amount Welded at the above
per cent is in of the actual receipts this class prop
lerty invariably found in the taxing Jurisdictions which
pose the smallest The be found
IA mathematical calculation the rate and Of M
|class of property assessed in each town.
Your committee only has these questions to resi-
dents Of but in other states
where the level income has been adopted as well as
Prof Bullock with whom of your committee had personal
interview. which they found he was not only conyesn with
1.-THE tax yielding capacity of the level and income tax laws
Of the states that have adopted these methods but perfectly
familiar with the laws of Maine and with the facts and
figures contained in the reports of Board Of State Assessors
I'VE therefore quote his opinion upon this point and reason,
heefor While we shall append his full report upon all The
questions suggested his upon the point now involved
Us SO concise comprehensive and pertinent that feel justified
lin quoting it in full at this time
Ill In estimating the financial results of a fiat taA a c
rate OF three mills 1t is necessary allow first Of all for The
tact that the SI46oSooo of ntangbcs taxed in 1910 pro
pad upon an average somewhat less than average rate
taxation in Maine AS rule il will be found that ther,
almost none OF this property the rolls in tho districts
where the tax rates highest that about half of the nar
ibles now taxed in Portland the tax rate j accord
ing to last accounts slightly less than the average for the state
ana that outside of Portland the largest Accommodations rs m
ARE found IN places where less than The
In Massachusetts, repeated investigations have shown that
me taxable intangible property exceeds by from 10 70 soc
he value OF our real estate For the latest Gee
Report OF Special Commission Taxation of IoI6 nm sg
In Name the proportion of nangbles probably smaller b
80 100 is the amount of real estate value In Massahset,
inc value OF our real estate amounts to $1,000 pcr can while
IN Maine the value of real somewhat around s, pcr
apa 1t would be safe to estimate that the taxable ;n,ng,
1S half ~