Daily Kennebec journal., 1921-11-03

The most gGSsng and obvious in.
equality in the execution of our tar
system. according to Mr.. Gardner
is the escape of Intangible property
from any form Of taxation. He 1,
concerned with the idea that the DIE.
ficulty arises not with enforcement
but as q result of inadequate laws
the assessor being blameless tbs
legislator at fault. The speaka,
said. However. the legislator has
not yet received from the people suf.
ficient demand for reform OF our tay
laws. a special. tax commission an.
lointed by the Legislature 81 year,
ago gave a careful study OF the al.
tempt to reach intangible property
and recommended in the stroncss,
terms the passage OF a law TO cor.
rect the existing abuse. characters.
ing the opponents OF such 4 law 20
those who wish to avoid a fair and
full, assessment of their properly,
who, having long escaped paying
their Just share OF taxes, desire IA
perpetuate their exemptions, and
shift the burden they can easily bear
Upon the shoulders Of their ne!shbo-s
whose property may be open and
visible to the assessor.
The speaker went on TO corsidera.
ton of the fair value Of intangible
property owned by the residents ~
Maine, question impossible to ans.
wer with any exactness since the
ownership OF such property IS rarely
revealed in whole. The total amour,
discovered and taxed in 1920 was
s25,533,5G in 1916 about s25.00o.00O
Approximate estimates OF the A..
tual amount of such property are
based on figures obtained from facts
of incomes filed under the L. s in.
come tax returns, from which a con.
servative assumption yields tile news
that the value Of intangible property
owned by Maine taxpayers in l9fSV
approximated 100000. 600. which sum
escaped State or local taxation in the
same year that the entire assessed
valuation of the State was under
5000, 100000. We are thus brought IA
the startling realization that for
every hundred dollars of wealth in
the State that bears it's share Of our
tax burdens scventy-five dollars Of
wealth escaped any share in that
burden. In the class Of intangible /
property but five percent. is taxed
and 95 percent. goes free"
In an urgent paragraph compar.
ing the increase in avera ge tax rate
with the steadily mounting valuation
Mr.. Gardiner warned that the valua.
tio7s cannot continue TO rise at th.S
same rate as tire tax rate. "insofa,f
&c the increased valuation represer,sE
res'ly created property value we mayy
expect the increase to continue. Butf
old values can rot be marked I'D for.E
ever. at least not at sufficiently
progressive rate TO enable US to keepk
the tax rate down. The State valua.
ton is not increasing in sutfcicny
proportion to the average tax ratsE
The one obvious answer IS 10 friE
and tax intangible property ard ~
take advantage of the increasir,
wealth Of our citizens, for It is wealth
that must bo taxed. You cannot ~
blood out Of stone"
In passing the speaker paid tribgrE
to the farmer Of Maine for his ho.. q
est effort TO meet the tax burisv &
laid upon his shoulders. He wen; I'll
70 urge the slow change of the hIS
laws stating that 'In advocating taY Y
reform you will he opposed by atsE
and crafty men. Tax issues are cas-,
lily clouded. misinformation is easilT
spread. You cannot face your on,
poncntS. for the fight o. reason i(
on your side and your fight viii he IL
the dark. ! am Offering you no conE
crete plan OF tax laws and I 90 ID
with a reason. II seems 10 me thai
the situation is becoming 50 CritiCalV
the injustice SO obvious that enouclE
interest can be aroused to assure ac.
ton of some sort When action ~
actually threatened my conception &c
u square deal Is that the owners dI
intangible property should ceas,(
their opposition and assist in fran &
irg q fair law. theirs is the prope-yE
and theirs is the knowledge pocuarS
TO such property. II is no small tasil
To draw n fair tax law. Perhaps liz
am too trusting in human nature bgty
anyway il seems to me that II youth
can back a man into a corner ardE
tell him in no uncertain tones TO he
fair that he will probably 60 II. IN
the present rate of taxation was n.
forced on intangible property III
would almost amount to confscatloa
of property" Il
In closing Mr. Gardiner CRITICIZED y
the law passed at the last Legislative
session concerning the taxation dt
bank stock to be effective next
year unless held Unconstitutional
which provides in substance tha,(
bank stock shall be taxed by The y
state Assessors at rate Of - mills
and the proceeds returned to the mu-
inequalities where the owners Of the
stock reside. THE present rate otE
tax on bank stock is unqucsIionablyV
TOO nigh but the remedy is rotf
through any such arbitrary and dis.
eliminating law hut by fair law ap.E
piicable to all classes of intangblef
property" HIS final remarks ey'
pressed a desire for q Maine "loussX
in order in the following words
Meetings to boom Maine are being
held n various parts of the staet
Let US not forget to put our house III
order before we nat il on the mark.
ct 1t viii he better If We C1n boaTE
that the tax laws Of the state Ill
Maine are as fair and iust as the
hc"r of her citizens"
The evening session was then sif
journed
Tho final session Of the conyentiohE
Will be held this Thursday morn:nF 4
beginning ut $50 o'clock.