The Birmingham age-herald., 1920-04-28
For the Good of
 the Community

 w. tra session during the coming summer, as it most probably will, 1t will be confronted with the alternative of raising more revenues or cutting down ap- propriations. It is big problem and on it's proper solution depends, in large measure, the continued prosperity of the state
 Every appropriation made by the legis- lature last summer is needed 1t the state is to go forward The schools and col leges, the eleemosynary institutions, health department, and the various other causes for which provision was made need even more than they were given.
 It would be unjust to the state and to these institutions and causes to reduce the sums given them On the other hand, it would be unjust to the state and the citi- citizens directly affected to saddle an un- due burden on certain industries and sections.
 The supreme court has held that an in- come tax is invalid, at least to the extent that the rate exceeds the maximum levy permitted under the constitution It is probable that the coal and iron ore ton mage tax will fail for the same reason. Both are open to the same objection, at least the counsel for those opposing the tonnage tax based their main argument on the theory that 1t is property tax, and the supreme court held that incomes are property.
 In the event the supreme court holds the tonnage tax to be invalid the states revenues will fall at least million dol lars short of appropriations, unless prop oys4u vol 11of1 loYO lU c0H Oy1Q preceding years.
 There is ample ground for increases in taxable valuations, both in real and per sonal property. According to the report of the State Board of Equalization, dated October l, 1918,, on which taxes were col lected in 1919, the total valuation of all property in the state, both real and per- sonal, was S705, ,030,567. Real estate was valued at $444, ,843, ,824, and personality, $260,186,743.
 This is supposed to be sixty per cent of the reasonable and fair cash value of the property As mater of fact, it is esti- mated that the value of all property in the state is around S3,000,000, or over four times the assessed taxable values.
 Assuming that the estimate of the total values IS approximately correct, real es- tate ought to be on the tax books at 50 per cert the total valuation of approximately $1,700,000, ,000 and personally at about S1,300,000,000, or S1,020,000,000 and $1,800,000, respectively, which, at 65 cents on the S10O would yield S11,7O0,- { 900, or something more than S1,000,000 in excess of all appropriations.
 This enormous sum would not be needed to meet the expenses of the state during the next four years, hence by equalizing the real estate values and bringing out the hidden intangible property the tax rate could be lowered possibly to forty five or fifty cents on the S100 and still provide sufficient revenues to meet all of the states obli- gations.
 This appears to be the simplest way, whether it is the easiest way or not There can be no good reason for arbitrarily fixing by law the value of property at 60 per cent of it's fair cash value This basis of taxation has no sound basis Only the fear of opposition at home influences the legisla- tors to vote for such law or to retain it on the statutes
 The state says the property is worth only 60 cents on the dollar and the property owner goes one better and says it is worth only about 22 cents on the dollar. The state set the example; the property owner quickly followed; the state is the loser.