Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-12
WILL
CONSIDER INCOME
TAX THIS WEEK


state Max upon incomes in lieu of
all ad valorem taxation for state
purposes is expected this week by
the house committee on appropria-
tions and ways and means, to which
the bill was referred by Speaker
Neill.
Chairman DuBose, the head of the
committee, is in favor of the bill,
and so is Vice Chairman Culpepper,
who has been appointed by Chairman
DuBose as chairman of a sub-com-
mittee on ways and means. Indica-
tions are that the committee will ap-
prove the bill and refer it back to
the house with a recommendation
that 1t pass.
Governor HardWick's proposal Of
state income tax in lieu of ad
valorem taxation by the state has
aroused great interest among mer-
chants, manufacturer, farmers,
bankers and men engaged in other
lines of business throughout the
state.
The bill, OF course, involves a con-
stitutional amendment, and, there
fore, will require a two-thirds vote
of the house and senate in order to
pass, and will be submitted to a
vote of the people in the next gen
eral election, which is to be held in
November, 1922.
Under this plan of supporting the
state government, there would be
no ad valorem tax imposed upon
property, real or personal, for state
purposes, but the state would derive
its revenue from tax upon incomes,
and ad valorem taxation would be
left entirely to the municipalities and
the counties of the state.
The federal government is sale
to be collecting in Georgia IA the
wards of ~$3O,OO0,O0O year. while
the state government is collecting
by a combination of ad valorem
taxes. occupation taxes. revenue from
the Western and Atlantic railroad
and other sources of revenue. approx
imately $9,000.000 q year
Governor Hardwick contends that
state income tax would enable the
state to raise more revenue, at less
expense for collection, and with
more general distribution of the bur-
den of taxation. than it can ever
hope to raise by ad Valorem taxes
plus the various other expedients for
raising revenue at the present time.
The income tax bill if passed by
the legislature at the present session
would not be submitted to the peo
pie until November, 1922. Assuming
that the people approved the bill in
that election, it would not be car
ried out by an enabling act until the
session of the legislature in 1928,
and would not take effect until 1924.
The enabling act would prescribe the
rates of taxation to be imposed upon
different incomes, from the highest
to the lowest; would provide the
machinery for making income tax
returns, and for checking the same;
would provide the machinery for col
lecting the state income tax; would
provide the penalties for failing or
refusing to make returns and pay
taxes when due; would provide the
exemptions to be allowed; and would
contain other details of the actual
putting into operation Of the state
income tax.
Huge Deficit
In the meantime, the treasury of
the state is facing a deficit of more
than $3,000,000. which promises to
grow to 100000 by the end of the
year, and the legislature is confront
ed with the necessity Of devising
ways and means of raising emergency
revenue to supply this deficiency.
Chairman DuBose, of the house
committee on appropriations and
ways and means has formulated
plan, announced on Saturday, for
raising this revenue by means of
tax upon soft drinks, bottled soft
drinks, near beer and gasoline. He
proposes a tax of one cent upon
each bottled soft drink, a tax of one
cent upon each soft drink served
over the fountain in a glass, a tax
of one cent per gallon upon gasoline,
n 70 TO I0o
ured out later.
He estimates that this emergeny
tax will produce for the state year.
ly revenue Of S3,500,000 to $4,000,0O0,
and will be the means of supplying
the deficiency in the treasury, and
pulling the state out of the financial
hole, until the income tax can be
substituted in place Of the present
ad Valorem taxes and the present oc-
cupation taxes. His plan has been
approved by Governor Hardwick and
is to be introduced in the house. this
week.
Capital Removal Fight
Probably next in Importance to the
proposal OF state income tax is
the Macon proposal to amend the
constitution SO S to remove the seat
of the state government from At
lanta- to that city. The Macon bill
has been introduced in the house and
before the house and senate commit
tees on constitutional amendments
during the coming week
AS a counter proposal, Atlanta Is
backing Governor HardWick's bill to
create a commission empowered to
sell the present governors mansion
On Peachtree street, invest $100,O 900
of the proceeds in a new and more
suitable mansion, and apply the bal
ance, which must be not less than
$3.50, 900. upon the states bonded
debt The bill is predicated upon
the theory that the governors man
sion n PR property is worth not less than
The surplus proceeds of the sale
of the mansion on this basis. or a
better basis, could be applied to sink
ing fund and interest payments on
the states bonded debt. which pay
ments would, otherwise come out f
current revenue. and the equivalent
amount of money from current reve-
nue. could then be used for the pur-
pose of renovating the present capt.
toll and erecting a capitol annex.
To sell the governors mansion
and acquire a new one. to rehovate
the capitol and build a capitol an
mex. would virtually dispose of the
question of removing the seat of the
government from Atlanta to Macon.
Hence the Macon supporters are op-