The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-12-10

valuables,' (code, Section Zoo) fe-
suits in the taxpayer, if he reports
credits at all, reporting merely the
excess of credits over debts. With
out inauisitorial inspection, no means
is available of checking up such re-
turns. Permission to deduct debts
means in practice permission TO
evade taxation.
Operates Unjustly.
This failure of the tax to reach
intaneibles operates unjustly as be-
tween various classes Of individuals.
The farmer pays taxes on the value
of his land, his barn, his cattle, his
plow, his house. Thes city dweAer
of modest income, who owns a small
home, pays on his home his share OF
taxation. The wealthy city dWelier'
whose income is wholly from wealth
invested in corporate securities, II ne
lives in a hotel, can wholly escape
taxation.
The provision in the constitution
that all property shall be taxed three
mills for school purposes would IL
enforced to the letter, yield much
more revenue for school purposes
than the state is willing to spend. In
order to keep the revenue receipts
for school purposes within the de-
sirable limits, it has been necessary
to tax property at less than it's full
value. Although the constitution
requires all property to be assessed
at it's actual value, the actual sltua-
ton is that the tax commission and
the other tax officials operate on the
basis of obtaining an assessment or
property at varying rates, but gen
erally at AZ per cent. Of it's real val
ue, but in failure to assess it at as
much as ~ per cent. Of its full value.
Once this departure from the letter
of the law receives what corresponds
to official sanction, it is not surprising
that difficulty is experienced in keep
ing the departure from the law
within the limits desired.
There are still other reasons which
explain, if they do not, excuse, false
returns and underassessments. Un-
LIBERALIZATION by some taxpayers
throws an undue proportion of the
tax burden on those who report their
property in full. If all undervalued
their property in the same proper
ton, the revenues Of the state would
be obtained with something ap-
preaching rough justice, the only
difference being that the rate OF tax
alton would nominally be excessive,
although actually reasonable. I'm
dervaluation on the. part Of the com
munity in general makes underyalua-
tion on. the part Of individual tax
payers an essential weapon Of self
defense.
Proper Tax Basis. -,
Even if the general property tax
could be properly assessed, it would
still be open to serious criticism
The proper basis for taxation is ac-
cording to ability to pay. Although
the amount of property possessed is
one index of ability to pay, it is not
by itself satisfactory index. One
man may be gaining great income
although he owns the same amount
of property as another man who
earns but a bare pittance. The farm,
er whose cotton crop is destroyed
by the boil weevil pays as much tax
under the present system as the
farmer who is harvesting bumper
crop. The professional man, or the
superintendent of factory, who
needs no plant or equipment to gain
a substantial income, escapes taxa
ton, whereas the merchant who has
small sales from a large stock Is
subject to a heavy tax. The mar
who invests his surplus income IN
tangible property is subjected to tax
alton. The less desirable citizen who
spends all his income as quickly as
he earns it, wholly escapes his share
Of taxation.
Even if property were good IN
dex of taxpaying ability, citizens
personal liability to contribute to the
government under which he is doml
ciled should be measured in principle
by his net property, the excess Of
his gross property over his liabilities
thereon rather than by his gross
property. If a man holds title to
- IL