The Dawson news. (Dawson, Ga.) 1889-current, 1919-05-06
CLASSIFIED TAXATION
PLANNED FOR STATE
WOULD TAX ALL PROPERTY AC-
CORDING TO ITS EARNING
POWER. SOME OBJECTIONS.

ATLANTA, Ga.-The advalorum
system of taxation has broken down
and demonstrated itself to be failure
under modern conditions of industry
and commerce, declared Governor
Dorsey in discussing the need for tax
revision in Georgia, and eventually
this state will abandon the system
and establish in its place a system of
classified taxation whereby different
kinds of property are treated sepa-
rately and taxed by different tax
rates.
Classified System.
Governor Dorsey believes the OBJ
Jectlons which have been raised
against the tax revision proposed by
the state tax commission are easy
to answer and will be answered in
the next legislature to the satisfac
ton of all parties concerned. The sys-
tenn proposed for Georgia by the tax
commission is classified system. 1t
throws away the old system of taxing
all property alike, both tangible and
intangible, and levying upon it the
same rate. In place of this system
1t establishes a system whereby diff
ferent kinds of property are placed
IN different classes, and rates are fix
ed on each different class according
to its earning power.
Real estate, for instance, earns
more money than household furni-
ture. Stocks that pay a dividend and
sell for a good price in the stock
market earn more money than bank
deposits, unless a bank deposit be
placed IN the savings department
where it will draw interest. House
hold furniture earns no dividend at
all. 1t does not enhance in value, but
on the contrary it depreciates. Hence
1t will be seen that the advalorum
plan of taxation, whereby all things
OF value, whether real or personal.
whether tangible or intangible, are
treated alike, has many Objectionable
features.
Commission Makes Recommendation.
The state tax commission was Gre
ated by the legislature in 1918 to
make thorough study of the tax
laws of Georgia and other states and
other countries, and to prepare
general revision of Georgia's tax
system and report the same back to
the legislature. The commission is
composed of the governor as chair
man, members of the legislature and
citizens, also the state tax commits
sloner. The commission has made
most thorough and comprehensive
study of the tax laws here and else
where, as directed, and has found
that a majority of states in this
country, and majority of countries
throughout the world have abandon
ed the old advalorum system of tax
alton and have adopted the system
of classifying different kinds of prop
erty in different classes and taxing
each class on a separate basis. The
commission recommends the adoption
of this system in Georgia.
On stocks of merchandise, for ex-
ample, the commission proposes that
merchants shall keep in ink record
of goods purchased, and shall furnish
this record to the tax authorities an
nually, and that tax shall be levied
on each hundred dollars worth of
merchandise bought by a merchant.
The merchants started out with OBJ
jections to this plan of taxation. At
lanta merchants sent delegation to
Macon to appear before the tax COM
mission at its first hearing and OPP
pose it. Governor Dorsey says they
were satisfied, after listening to the
members of the tax commission, that
the plan would impose no hardship
upon them, but on the contrary
would be much more equitable and
satisfactory than the present pan of
taxing merchandise in the same man
ner Theoretically as real estate is
taxed.
Bankers First Object.
The bankers also object to the
banking feature of the proposed tax
revision. This feature provides that
money in bank shall be separately
taxed, and provides that the banks
shall take the tax out of the deposits
and pay it to the state. After hear
Sing members of the tax commission
explain the plan, says Governor Dor
sey, the bankers were satisfied, like
the merchants, that it would work no
hardship upon them.
Governor Dorsey believes the plan
prepared by the tax commission is
thoroughly fair and just to all class
es of property, and believes it has
SO much merit that practically every
reasonable objection can be satisfied.