The Birmingham age-herald., 1919-04-25
INCOME TAX BILL DRAWN BY WEAKLEY
 GOES ID GOVERNOR
 FOR HIS APPROVAL
Will Provide New Source of Revenue For State, Coun- ties and Cities-Income Returns to Government
 Available For State

A bill containing provisions tor the application of income and ex- cess profit taxation has been
 drawn by S. D. Weakley of Bir-
 mingham. and forwarded to Gov ernor Kilby for his consideration
 and approval.
 Because of the probable necessity of amendment, the details of the meas ure are not made public. It is under stood. however, that by virtue of its operation the treasuries Of the staee' of the counties and cities of the state will be materially benefited
 Governor Kilby is said to be deter mined to put the measure through the legislature. and a superficial study or the situation indicates that he VIII eh- counter very little, if any, trouble.
 EASY OF APPLICATION
 Such comparatively new forms or taxation constitute powerful weapons in the hands of the state. They are of exceedingly easy application, for feder- al statutes provide that statements of income made to the federal govern ment may be turned over to the a'i- thorities of states having similar laws.
 And if the financial profit to the state is not as large as the authorities think it should be, the situation may De remedied by the simple process of i'm crcasing the rate.
 At one time fear was entertained that incomes taxation could not be adopted in Alabama without consti- tutional amendment It is understood this fear has now Subsided; the legal advisers of the governor having gwen assurance that a simple act of the leg islature would suffice.
 MANY NOW ESCAPE
 While there will be difference of opinion as to the justice of the pro- posed legislation, many citizens of Blr- mingham favor the idea provided the statute contains the usual bread line exemptions-if the man of average sal ary is protected.
 Some men of big incomes are able to escape with the entire amount of their incomes as far as state taxation is concerned Many have abandoned the habit of investing in real estate. be . cause such real estate is subject to tax ation, it is said. They have invested their money in bonds. Laws of the state imposing a high rate of taxation on bonds paying only 5 per cent are judged confscatory. and, as result, tneSc bonds, as rule, are seldom TSu- dered for taxation.
 CITIES TO SHARE
 Of course, the bulk of the amount to be derived from this new source of revenue will be furnished by Jefferson county.
 It is understood that according to an agreement reached between the state and the city of Birmingham, Jefferson county. in the legislature, will support the proposed statutes provided Bir- mingham is guaranteed n substantial percentage of the total amount secured from this county through income and excess profit taxation.
 The city holds that as result many of it's ills, superinduced by treasury def icits, will be cured.
 RICH TO PAY
 As thee ities vii share. the counties, of course. will insist that they share,
 The proportion said to be agreed upon is dependent on the amount raised in Jefferson. Birmingham will divide Jefferson's profit in proportion to the amount of Jefferson's total raised in Birmingham.
 As the cities will share, the counties, the state, the state itself will not fare so handsomely But the system will operate so that the man of means will pay taxation in proportion to his means. And this is said to be the real object of the proposed law.