The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-07-24
Benners Makes Plea
For Fairness in Tax
Burden of the State
Chairman Murphee Explains BiPs Provisions and
Tells Why Committee Decided Against the
Horizontal Increase in Assessments
BY w. j, BOLES

J. BOLES
how much money could be raised and
then after working out a revenue bill
make appropriations that would keep
| within the estimated receipts.
| The budget committee cut down the
estimates made by the educational
| committee and the different depart
| ments>" Judge Murphree stated. be
cause we realized the sums they asked
| for could not be raised under existing
conditions. But in view of the fact
| that the state cannot live on the old
income we decided to increase it. A
dollar in the state treasury will not
| purchase any more than the dollar in
the individuals pocket, with this ex-
ception. the salaries of state officials
ana department clerks are fixed by
I law, but they are a small part of the
total expenditures. The average reve-
nues OF the state in recent years mas
been $S.500,000. We decided to ia
000"
Representative Benners of jefferson.
AS L understand it, the COMMITTEES
proposes to increase the revenues by
about $4,000, 1000"
Judge Murphree: yes"
Representative Benners: According to
the statement prepared by the budget
t;cally all of this in the mineral dis
trfct The committee estimates the re-
ceipts fnom the coal and iron ore tonnage
at $4,000, and from incomes and ex-
cess profits at 100000, leaving only $4oo, 900
OF the increase to be raised in other
ways"
Judge Murphree agreed that Mr.. Ben
ners understanding was correct.
Everybody was demanding more
money" continued Judge Murphree. 1.-The
educational department, the health de-
partment, roads, vocational education and
all he departments. We cut all these
down to the lowest sums we felt we were
justified in DOING
Answering questions put by Mr. Ben
ners, Judge Murphree stated that the
income from insurance tax would amount
to about $4,000 year and from increa sed
values oQrreal and personal property
about 1900"
Ibid it occur to the committee how
inequitably 1t would be to put all this
increase on the mineral district?" asked
Mr.. Benners.
PAY OF STENOGRAPHERS
Postponing for the time an answer to
Mr.. Benners' question, Judge Murphree
took up the demands for more money
from the departments. He said the COM
mittee heard rumors of wastage at the
CdpllOl anu tney naQ survey maze as
to the sufficiency of clerical help, station
cry. etc, in the various departments.
They found, he said, that some stem
ographers were getting $40 a month and
other clerks small salaries. The commit
tee recommended that the stenogra pliers
be graded. creating three classes-A, B
and c. Those in class A, acting as
stenographers and clerks, and their SAL
aries fixed at SIS a month; class B, as
stenographers and filing clerks, to re-
ceive 800 a month. and Class c. doing
only stenographic work, SIS a month.
Some of the clerks in the departments
who had been there for years and were
highly efficient received only $500, and
the committee recommended increases to
$4,000
when we looked about for sources of
additional revenue to meet the increased
appropriations we realized must be made
we found a very difficult situation.
Taxes on incomes and excess profits
were suggested. The committee was
more or less in the dark on that AS
we interpreted ruling of the supreme
court of Alabama incomes from prop
erty upon which a tax is paid cannot
be taxed. That means that the owner Of
a building or a farm cannot be taxed
on the rentals he receives from the farm
or the building. How far the estimate
we have made will be cut down we do
not know.
Then when we reached the coal and
iron ore tonnage tax suggestion we were
confronted with the same proposition
We did not know what effect the pay
ment of franchise tax would have on
that. So we estimated the total income
and excess profits tax at between $4,000
and $500 900, which is to be divided be-
tween the state and the cities and coun.
ties. We, therefore, estimated the
states revenues from this source at
$500. 900. y
I'VE consulted some men interested IN
the coal and iron industry, as to whether
the industry could stand tonnage tax.
We then decided to recommend it One
of the reasons for SO recommending is
that the removal of the coal and the
iron ore depletes the resources of the
state and decreases the value Of the
land.
II am opposed to an excise tax I be-
leve it is inequitable and unfair. There
is never an excuse for the state ex-
ercising this power except as a police
measure. but the system had been adopt
ed by the state and has been in effect
for many years. We decided not to
change it.
IF we were to obtain the additional
revenue needed there was only one other
source to which we could appeal. anc
InAt was HOIlzOHtdl raise oI plopcity
values from GO per cent to 100 per cent
That would raise the additional revenues
required 1 think the legislature made
mistake when it departed from the 100
percent valuation but it did it, and we
thought it best not to depart from it.
1--WE struck this snag. The constitution
apportions three mills to the schools,
leaving 50 cents on the 500 to the state
Ten cents goes to the Confederate sol
diers. That leaves Is cents for the general
fund A 1O0-percent valuation on all prop
erty would raise the additional revenues.
TT is question of whether we will
raise the additional revenues by ton
mage tax on minerals and an income and
excess profits tax or by a horizontal in
crease of property values to 100 per cent"
Representative Arnold of Jefferson:
"Would the entire tonnage tax go to the
state?"
Judge Murphee: Yes"
STICK BY so PER CENT
Continuing. Judge Murphree said: The
horizontal raise would relieve the counties
and cities of the state that are struggling
under debts and insufficient revenues 10
properly maintain the administrative and
other departments. But the committees
decided in view of past legislatures hav-
ing adopted the CO. percent valuation to
look to other sources for revenues.
You know If we undertook to raise
the values long and tedious ligitation
would follow and the next legislature
would convene before the state could get
revenues enough to maintain it's institu-
tons.
Representative Benners: THE states in
come is to be increased $2,00o.0o0 For the