The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1917-03-16
why KENTUCKY NEEDS
A new TAX SYS TEN.
Proposed Changes In The Laws
Being Considered By
The Legislature

for while but In time the owner VIII
awake to the realization that he is
losing money on his investment and
will seek for means to make II pay as
he knows the loss on the fallow land
must be borne by his productive fields.
For twenty-five years under bane-
full taxing system the State OF Ken.
lucky has had lot OF fallow land and
other unproductive property lying
around and contributing nothing to
the revenue and the expense OF running
the government has been imposed on
other land and property in sight and
easily taxed.
The tax rate has been Increased
Thirty. seven and one.half (37h) per
cent and the assessments OF property
Sixty (60l per cent but the revenue has
not kept UP With the expenditures and
the State has piled up a debt OF Four
Million Dollars, which is increasing at
the rate OF Sixty Thousand Dollars per
month.
The State needs more money for
Schools, Roads and the support of It's
Institutions and every year will see an
increase In the assessment OF the same
property with a probability OF an in
crease in the tax rate unless some plan
can be found TO discover other sources
OF revenue from other property to be
taxed.
There is said to be over Billion
and Quarter OF untaxed property in
the State which local assessors are
apparently unable to discover and as.
this represents more in value than the
property taxed It IS very plain that the
latter Is overburdened
The State Tax Commission ap-
pointed under Resolution OF the Legis.
lature OF 1916. composed OF three
Senators and four Representatives
from the Counties OF Harlan. Bourbon,
Allen. Lyon. Carlisle. Shelby and JET.
ferson, OF different political affiliations,
farmers. lawyers and business men
after seven months labor in inyesti-
eating the tax laws OF this and other
States has proposed remedy and the
Legislature has been called in extra
ordinary session TO consider same.
The New Laws embody the practical
and successful methods OF taxation In
vogue in other prosperous States as
applied to existing conditions In Ken
lucky.
They involve no Intricate or revolution
airy changes. but leave the taxation Of
a. =
except in tho reduction OF the tar rate
from s. to 40 cents and propose 20 secure
additional revenue largely from properly
not now contributing its fair share OF
taxes. The only other change in State
taxes is In placing nominal tar on
Bank deposits, which will bring IN a
revenue OF not less than One Hundred
Thousand Dollars $500 ooo.0o) from
source now contributing less than SIX
Thousand Dollars $4,000 oo)--thls 10 one
OF the certain resuits.
The only radical change f. IN eliminAt-
ing Intangible Personal Property, Agn-
cultural Implements. Manufacturing Ma
chinery and Raw Material In process OF
manufacture from local taxation. by
counties and towns. but as the items
affected represent only comparatively
small part OF the revenue the beneficial
effects Of the change will be far greater
than the losses TO counties and towns
and the collective advantage will be
enormous.
The principle and purpose of classifying
property for taxation Is TO make all
classes bear proportionate share OF
the burden and force property not con-
tributing 10 pay towards the support
OF the government.
The plan Is to tax property Instead OF
nd a..
owns more than one class OF property the
taxes OF all are uniform on each class
All classes will be taxed for State pur-
poses, land and improvements and some
kinds Of tangible property will be taxed
for County purposes where tho owner
resides In the country and also for Town
and County purposes II the owner lives
In Town. The reason is obvious. ms
real and tangible property 10 valuable
according TO It's location, and farming
land is benefited by County improve-
ments. roads and schools and Town lots
and improvements by the protection and
facilities afforded by Towns. This Is
rational and fair to all.
There il no law that limits the kind of
property person may invest In or own.
but the law may FIX the taxes on any
kind Of property as long as the owner
OF each class has the same taxes to pay
on the same class or classes he may de-
eide to invest In. This IL the only uni
form plan Of taxation ever devised.
II man resides in Town or City he
should pay for the privilege In Town or
City taxes. II he prefers the country he
should pay for the County expenses. As
both live in the State both should pay for
the expenses OF the State government.
1t is well founded theory that the
workman should not" be taxed on his
tools, which are his third hand, and to
tax the implements OF the farmer or the
machinery OF the factory is unjustinable
under any pretext The Constitution,
however. forbids the exemption OF such
property from State taxation and the
best that can be done is to eliminate It
from town and county taxes.
AS to Intangible Property, on which the
development OF the State depends. there
Is no sense in throttling the sources OF
drive such property away. the approved
modern method Of taxing Il Is by limit
Ing the tax to the State revenue and
thereby bringing II to light. Such prop
erty limited in its productive income can
not and will not stand quadruple taxa
ton for State County. Town and Schools
consuming from one-haH to two-thirds
Of the interest, and as II Is neither sub
Iect to equalization or exemptions; as
Sther personal property; and assessed at
= higher percentage. when located, the
tax amounts 70 practical confiscation and
In consequence 95 per cent. OF II now
Dvades all taxation