Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-11-28

Santa Fe, Nov. 27.-~Repeal of
the 1919 state income tax law, pas
sage of n fiat per cent on per-
/ sonal incomes In It's stead. the
| placing of the administration un-
der the tax commission instead of
tho state treasurer as In the 1919
law, and the laying on the table
without prejudice" OF. the question
OF a graduated state income tax
more because of the present heav-
! ily graded federal taxes that the
constitutional questions involved, -,
| these were the chief points In
| chapter three of the report of the
state revenue commission, the sub
division dealing entirely with the
! income tax problem,
| Before entering into q discussion
Of the proposal it should be re-
called that the 1919 law, declared
| unconstitutional by Governor Lar
/ razolo in his call for a special ses-
sion, repealed by that session and
the repeal vetoed by the governor.
| Is now being tested in the courts
of the state. \ preliminary hear
| ing has. been held before Judge
Reed IIollomau at Santa Fc and by
| him a writ was issued temporarily
guspending the operation of the
law. ON Monday Of this week. the
final hearing will be conducted on
the question Of making the writ
permanent No matter how Judge
Holloman decides the question, it is
probable that the litigation will
L. tod 20. To tTN
supreme court in order that de-
cision there may be had before the
legislature conyenes.
With that in view, the commits
sion's report will be considered. al
though there is the possibility that
the court decisions may guide the
| legislature in the law they pass.
For instance, If the court intends
to hold that an income tax on New
Mexico intangibles at a different
rate than other property is taxed
Is not valid, it is probable that the
income tax law. If passed, Will pro-
vide for application after January
/, 1921, and that "A constitutional
amendment changing the taxation
sections of the state constitution
Will Dt SubHlillNh " iiit PNER RsN
prior to that date.
Opinions Differ Widely.
The commission in its report
points out that amCng the wit
nesses summoned for the hearings
at Santa F'e, there was a conflict OF
view as TO the constitutional status
OF an income tax law in New
Mexico, as to the desirability of es-
tablishing such tax ut all, as to
its scope, exemptions, rates, offsets,
deductions, and as to whether II
should he progressive or uniform
The commission came to the con-
clusion that IAN income tax should
form d part of the state revenue
system and that II should be a per-
sonal income tax levied at a uni
form rate
The report recognizes that in|
public finance several comprehen-
sive taxes gives better results than
any one single tax, that no tax law
is perfect, and that thefefore, two
fairly comprehensive taxes, one on
property and one on income. offer
a prospect for improved distrlbu-
ton of the tax burden, one supple
menting the other. within limits
1t is true that where the property
tax is strong, the income tax Is
weak, and where the income tax
presses lightly, the property tax
bears heavily"
The commission holds that be-
cause of the distinction between
funded" and "unfunded' incomes,
a levy first on property and then
on income does not really result in
double taxation since through
them, two standards are employed