The herald and news. [volume] (Newberry S.C.) 1903-1937, 1919-01-31
i The Budget System" of Taxation.
(By G. Leland Summer.)

| Cur present system Of State taxes
has been largely commented upon
pending some definite action by the
present legislature This is a phase
OF our government that should keep
pace with the economic changes that
are constantly taking place in our po-
litical and industrial progress.
The budget system" has been rec
ommended by our governor. Many
States use the system and it has
proven of great use. 1t means that
all State taxes are predetermined on a
scientific accounting basis. Like the
manufacturer and merchant an analy-
tical statement is made of income to
be spent for stated or determined
amount of expenses of investments.
The revenues required to meet annual
expenditures to appropriations are
planned and co-ordinated in such
manner that all tax assessments may
be fully anticipated
The aim, therefore, of such system
is to give a clear insight into all ass
essments and appropriations-a state
ment upon which a final yerifcation
may be made, the accuracy of neces-
sary expenditures, and the collections
required to be made at the proper
time 1t gives the governor full and
positive information as to the neces-
sary funds to be raised, the appropr;a-
tions applicable thereto, and the yaria-
tions. Of all unbalanced appropriation
accounts. if any, at the end of the
year. In arriving at the figures many
technical points, OF course, are involy
ed; so that it is a part of such system
to have an examiner working in CO
operation with the comptroller gener-
al, to present such details and pass
upon their final working out each
year.
A lack of uniformity in our present
tax assessments is a cause of large
increase of tax rates, and this should
be regulated eventually by such a sys-
tenn. AS it is a generation Of taypay
ers are unconsciously throwing the
burden OF taxes upon each future gen.
GRAFTON, who, to keep up with the
growth Of industry, are necessarily
forced to increase the tax rates but
not in proportion to the costs incident
to such growth. Hence, there is each
year increased taxes tempting the tax
payer to lift his burden the next year.
There is need of some system to take
care of the governments demands
fully and impartially, equalizing ass
essments and furnishing proof OF our
governments needs.
Then, too, the States financial stat
us should be stronger. The basis of
strength Of all industries in State
is its credit. If its debt is reasonable
as compared with it's resources it can
rely upon safe margin of credit, but
ii burdened with a large debt no new
industries want to establish them
S.lyes IN State where taxes are ex-
orbitant nor any bond houses or trust
companies would want to do business
with a State not showing a systematic
effort towards future tax liquidations.
However, South Carolina's resources
are large and have grown rapidly the
past few years. It's debt is yet pro-
portionately reasonable, fact of
which it's citizens should be proud.
" lille it's resources are large and in
creasing yearly it calls for more de-
Iiberate planning to meet the demands
made by its appropriations. We know
that sporatic efforts are always uncer-
tain as to results and with the ad
vance OF our social development comes
the necessity for more sustained ef-
iort TO enlarge our economic policies.
Here's hoping that such a law will
be passed. The budget system when