The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1920-06-17
WOULD REVISE TAX SYSTEM

At the Chamber of Commerce
luncheon last Tuesday, Mr.. H W.
Oshant discussed the topic, "Our Tax
System" Mr.. Oshant pointed out
the weak places in the present sys-
tenn, emphasizing particularly the in
ability of the present system to get
what is called "the intangible prop
erty' that is, property of a nature
that cannot easily be seen, for ex-
ample, stocks, bonds, ETC., which re-
presents perhaps one-half of the
wealth of the state and which to
very large extent at present, escapes
taxation. He also pointed out that
the present system makes it neces-
sary for the business man, retailer or
wholesaler, to pay upon 1909 of his
invoiced stock, whereas much other
personal property, in fact, most of it,
is assessed at a much lower value in
proportion than the invoiced or the
invoicing value. In the matter of
farm mortgages and farm property,
Mr. Oshant called attention to the fact
that since the farm is taxed and the
mortgage is also taxed, it results in
fictitious valuation and a double tax
alton for the property in question
and that this extra tax must be borne
either by the investor or by the Dor
rover, generally the borrower be-
cause the increased tax is reflected
in an increased interest rate except
where the mortgages may be sold to
investors outside of the state. This
system not only places an unfair bur
den upon one portion of the popula-
ton and puts unnecessary handicaps
upon the tools of industry, but it also
causes vast amounts of capital and
interest on the capital to be held out
side of Kansas which could otherwise
be employed within the state.
The difficulty lies in the constitu-
tional provision adopted in 1859 and
which remains unchanged. It re-
quires ga uniform and equal rate of
assessment and taxation" which
seems on the face of it to be fair but
which experience has demonstrated to
be inequitable and wholly inadequate
to the needs of this day. The consti-
buttons of most states originally con-
tanned such a provision but most of
them have abandoned it. Kansas is
among the few that have retained it.
In Kansas, tangible property-which
includes the home of the average.
citizen and his visible possessions
bears the burden of raising revenue
to maintain the government, while
intangible property seeks and finds a
way of escape. In Minnesota, which
state recently abandoned the old sys-
tenn, the rate of taxation was re-
duced from % mills to mills, the
number of persons assessed increased
from 5000 to $4,000 and yet the re-
venue produced was three times as
great as under the old system. Other
states have changed their systems
with similar effects, and long list of
similar illustrations could be given.
The simple truth is that in Kansas
the old system has failed to distribute
the tax burden equitably and every
student of the question believes that
it should be changed. In recognition
of these facts, the last legislature,
with practical unanimity, submitted
the following amendment to the con-
stitution:
''The legislature shall have power
to establish and maintain a just and
equitable system for raising state and
local revenue, and may classify the
subjects of taxation in order to Sc
cure a just return therefrom and may
exempt property when the public vel
fare viii be benefited thereby"
Exemption of personal property to
the amount of $500 and of property
used exclusively for civic, religious
and educational purposes is retained
in its present form.
Should the proposed amendment
be adopted, new sources of revenue
would be available and the tax bur
den upon other property interests
would be Iessened. It must be re-
membered that this is an enabling
act only. If adopted, the legislature
must proceed under the authority
given, to enact laws which will gov
ern the raising of the revenue neces-
sary to maintain the government.
Mr.. Osbant closed his talk with a
plea for widespread publicity on this
matter, in order that In November.
when the voters go to the polls, it
may not be defeated for want of
understanding.
The matter of the car shortage
was brought up and Mr.. Cochran ex-
pressed a belief that the famine on
cars which we have been experience