Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-02-14
TAXATION
intangible Property Taxation Consid'
cred Frs and Con at Length

cred Frs and Con at Length
A large representation of business
men Of Portland. Bangor. Lewiston anil
other cite; md towns Of the State were
present at ,ne hearing before the com
mittee Oh taxation. Many Of them
were present to declare their opposition
to the act providing for d tax upon in
comes received from certain iorms Of
| intangible property and from trade'
ami professions. which is patterned al :
er the Massa chusetts income tax law.
Senator Gannett Ct Kennebec. chairman
ON the JOINT committee on taxation, pre-.
, sides, and announced that the propon-
ents ana the opponents would be eacn
gwen an hour.
Prof. Charles A. Bullock. professor o;
economics in the harvard University
School OF Economics. was introduce
and explained in more or less detail the
Massachusetts law and its operation.
He stated that he was present at tie
request of Governor Milliken to confer
with the committee On taxation. He
; stated that 1t was difficult FOR strar-
ger to come into a state and advise
, adding that it is obvious that the LAY
laws. il not satisfactory. give much
, trouble. and that the people eventually
must determine the kind of laws they
want. Reform must depend in the long
, run upon the sentiment of the people.
Reviewing the general subject Of tax-
alton, Prof. Bullock stated that grea:
r,any inequalities existed in the matte.
x,,na 10
F., listed under the question of taxing IT.
j.. tangible property. the big estates even
| in general taxation getting off with ;he
smallest relative amount of tax. There
| comes point at which the people lie.
| bel and, he added. Lots of interesting
| things happen lie stated that il!c
| railroads are taxed to the full valuation
| Of property and are advocates Of fan
valuation Of all property.
| Turning to a consideration Of Tho
, question of intangible property. he sta
| ed that Maine was an exception if il
was getting more than 10 per cert. 81
! intangible property. and most STATE;
| are not getting more than per cens
/ He stated that there are three ,o;mS
i of taxation, which may be adopted ~
F.! the State.
! The first plan is d registration tax;
, the second Il fiat tax. Il tax of >. >
4 or ) per cent. on the basis of in
tangible property: and the third. an
income tax. He emphasized the fact
. that the rate of taxation must be
, made reasonable and the law must
be enforced in such Il way that il
, will not drive out property owners
. If an income tax law is made it must
be one such as is wanted. and then
! applied and enforced. Wisconsin
+, has tax on all incomes. while Mas
sachusetts decided to limit it to a
: tax on incomes from intangible prop
, erty. and IL per cent. on incomes
! from business. trades and profess
sions. The Massa C husettS Legisla
F, ture also added u :; per cent. tax on
! speculative earnings. He recon-
, mended the bill. House No. 1Oo. re-
: Gently introduced. as a fiat rate law
, it is not only good but he thought
! the best that could be devised. lie
added that if applied to Maine con-
ditions he would suggest at least 1.
amendments. stating that it had one
or two points in which it would not
fit this State on account of othe.
laws. This law would not treat uni
| formly all savings bank and othe,
| deposits in Maine. while it does fit
in Massachusetts.
whatever YOU do" continued
Prof. Bullock. go on the theory that
YOU are going to he fair. and then
enforce the law. In Massachusetts
the enforcement is strict. but it is
/ drawing back citizens. who were for
merly driven out Now they are
withdrawing from other states and
coming to Massachusetts,. The next
; thing to consider is what shall be
. left out. il anything. You want to
so on the basis of taxing all intan-
sible property. and not exemptine
! anyone. Do not play favorites.
would warn against half doing a flat
tax or an income tax. If you enact
a fair law YOU will find the citizens
doing TIER part. In Massachusetts
the two months or SO preceding the