Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-07-27
Dorsey Likely to DiSatpr0ve
Appropriations IN <4b5enCe
Of Legislation for Funds

Governor Dorsey ma ydisapproVe
any considerable amount of appro-
priations which may be passed by the
Legislature at the present session I'M
less the legislature also passes the
legislation necessary to raise more
revenue.
Such, at least, is the belief Of the
leaders of the house and senate who
have discussed the matter with the
governor, and who know his views
concerning the serious financial en-
barrassment in which the state is
complicated at present.
AS matters now stand, it will take
nearly 100000 more than the
states total revenue for 1920 to pay
being the case, Governor Dorsey can
see no use in passing additional ap-
preparations which would not and
could not be paid. His belief is that
| the legislature should raise more
revenue before spending more money.
Two revenue plans are under ad-
visement, as follows:
1. To amend the constitution so as
to remove the maximum limit of five
mills on the state tax rate, and so
as to authorize the governor and
comptroller to levy annually such a
IdIS OIL ldAdllOu DIS WOulu O0 lGCGo-
sary. to pay the appropriations pass
ed up by the legislature.
2. To amend the constitution so
as to authorize the legislature to i'm
pose tax upon incomes, lnheritances
and occupations, which taxes at pres
ent are not authorized by constitu-
ton, and which would be in the ma
ture of new source of revenue if
they were LEVIED.
Two Plans Considered
These two plans were considered
last week by the special committee
appointed by joint resolution of the
house and senate to Investigate the
states financial situation for the
| purpose of "ascertaining whether or
not there existed a casual deficiency
in the revenue of the state" and if
| so what steps should be taken to
| l1quidate the same.
This committee is composed of
Governor Dorsey, Comptroller Gen
| eral Wright, State Treasurer Speer
| Secretary of State McLendon, Chair
man Carswell of the house appropria-
! tons committee. Chairman Allen of
the senate finance committee, Chair
| man Arnold Of the house ways and
| means committee, Chairman Blasin-
| game of the senate ways and means
| committee.
Of course the committee did not
waste time ascertaining whether or
|
The fact that there does exist a cas-
ual deficiency is we'll known to ALL
The house and senate did not create
| the committee for the purpose of
| getting light on the existence of the
deficiency. but for the purpose of
getting light on methods Of extri-
eating the state from the financial
morass into which it is slowly but
| surely sinking.
As between the two methods of
wiz t10n hi
| the special committee decided in
favor. of the income tax A bill
embodying this plan of obtaining in
creased revenue is pending already
IN the house of representatives. It
has been favorably reported by the
constitutional amendments commit
tee and is ripe for a third reading
in the house, where the main squeeze
comes in passing constitutional
amendments, by reason Of the larger
| membership of that body.
Estimated New Revenue
Chairman Carswell, of the house
appropriations committee, estimates
that an income tax at a moderate
rate will bring to state treasury from
$2,0GO'OOO to $5,.O00,00O a year. This
deficit and meet the growing needs
Of the states institutions, depart
ments and pensioners. The last
named item alone is growing at the
rate of 100000 year, notwith
standlng estimates a few years ago,
ed pensions, that the increasing
death rate of Confederate soldiers
and their widows would offset the
annual increase of pensions.
eral income tax laws allowing
states which tax incomes to have
access the income tax returns of
the fedel government. This. would
oopga the to gt ef1 wb nort
luminous list of individual and cor
porate incomes upon which to make
al immediate start in collecting reve-
nue., 1t is believed Chairman Cars
wells estimate of the revenue which
income. tax rate is based upon in
formation as to the aggregate in.
comes of Georgia returned for taxa
ton by the federal government.
1t is pointed out that income tax
has this advantage from a political
standpoint, that whereas an increase
in the ad Valorem tax rate would ap-
ply to all alike, and would afford
the. public an exact barometer upon
! legislative appropriations, a. tax up
! on incomes would apply in the main
| to the rich and well-to-do, who arc
| in the minority. Hence it is favored
| by the legislators in reference to an
increase in the ad valorem tax.
Segrated Tax Is Urged
Chairman Carswell, of the house
appropriation committee, favors do
ing away with an ad valorem tax for
state revenue and relying solely
upon an income tax. He does not be-
lieve it to be humanity possible for
the state tax commissioners, or even
for a board of commissioners, to
! bring about uniformity of tax assess
ments throughout the state. His ar
| gument is that land values always
| will be assessed according to local
influence, and that personal property
always will escape taxation until
new methods are devised for getting
it on the books, and that the state
should not bother with the compli-
Gated vexations of an ad valorem tax
machinery almost entirely dependent
upon local tax authorities for it's
! operation, but should do away with
a