The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1919-03-28
NEW TAXATION BILLS

.Its
1t is a familaf and truthful saying
that "the pow.Hto tax is the power to
destroy" Taxes can be so levied as
to become s,th a burden upon bust
ness and Industry that the wheels OF
progress ore stopped and we have
stagnatiop where prosperity should
prevail. We are rapidly approaching
that cordition in state and nation. II
taxes are fairly and equitably laid so
that the burden will be as equally dis
tributed as possible and the aggre-
gate amount obtained is not more
than is sufficient to meet the expenses
of government efficiently and econom-
ically administered, there is little COM
plant But some Of the suggestions
made in the Tennessee legislature are
sure to arouse opposition. The per-
sonal tax bill fathered by Gov. Rob
erts and under which it is proposed
to make mandatory our present
uOuule dooeooIieHl, Hdo hlIoi oiiy u"
cited strong opposition. Discussing
this bill the Chattanooga News whose
editor has probably given more study
to scientific taxation than any editor
in the state, says:
"Of course, the taxation of personal
property as contemplated in Gov.
Roberts new bill is an outrage. This
is particularly true as it relates to
the taxation of notes and securities.
But there is nothing new about 1t, be-
yond the drastic provisions for max
ing 1t effective. These approach the
limit of liberation in free country,
OF course, such taxation is double
taxation-and ruinous-but it has
been the law all along. 1t only re-
quires enforcement to bring out its
obnoxious features. 1t is probably
fortunate that the real merits of such
a law are to be brought home to us.
I'VE have on several occasions under
taken to explain the folly, the in
justice and the inequality of taxing
notes and securities of gall kinds as
property. But SO long as it remained
in practical effect an academic ques-
ton, little interest was aroused. Now
we shall probably witness, q more
thorough discussion of the question.
It will help us to get a, firm founda-
ton for a beginning, however, if we
can thoroughly absorb the thought
that promises to pay are not property
misrepresentation of property
which is also taxed-and properly so.
"The constitution provides for equal
and uniform taxation, but this can
not result if securities are classified
as taxable property. Only a little
thought is necessary to perceive the
truth of this statement. The execu-
ton Of notes, mortgages or bonds
creates no property, and taxing them
as property in effect doubles the tax
on the property represented, as COM
pared with property against which
there is no evidence of debt Taxa
ton of notes at their face value-if
there were no other equitable objec-
tion-is neither just nor uniform be-
cause all notes are not Of correspond
Ing value and solvency
Income from securities, interest or
principals properly as classifiable
as personal property, and such is
properly subjected to tax, but not SO
the security itself. When the prop
erty appears, tax it not before i
These conclusions are not to be del
MED. For example a farm ASSESSED
at $4,000 is sold for $4,000, interest
bearing notes being given therefor.
No additional wealth is created, not a.
dollar of it, yet under this law the
farm would continue to be assessed at
$4,000 and the former owner thereof
would have to pay taxes on $4,000
of notes based upon the worth of>the
farm. The taxable wealth has been,
doubled yet in fact there has been &C.
tpally not dollar added to the wealth
of the community. Laws of this char
acter are so burdensome that newt
ably they must discourage changes ind
ownership of property and make It'll
increasingly difficult for men to own
their own homes. And yet ownership
of homes should be encouraged inj
every way possible. 1t makes for bet
ter citizenship.