The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-15

t~"~ot eorPorution ana privilege IL
>cense law, based upon the general
plan adopted by the State Of virginia
IL IN further recommended that a
consumption tax on gasoline, tobacco
and soft drinks should be provided for
One cent per gallon on gasoline would
yield approximately four hundred
ehousand dollars; one-h half of one per
cent To be collected from Wholesaler
broker or jobber in soft drinks, to-
bacco. etc. would yield considera ble
sum.
This whole subject is so thoroughly
oiscussed I'm the report OF the Special
Committee on Revenue ard Taxation
ehat I do not feel II essential TO 60
into details. I concur i'm the view OF
fhe committee that the Constitution
or the state be amended so as TO au-
ehorize the Legislature to classify
property for taxation with a view TO
distributing the tax burden upon all
property according to the principle
of tax paying ability. and earnestly
urge the passage OF such IN amend
ment at this session.
IL tho operation OF the proposaIs
herein will decrease the actual amount
erty, cause persons who have hereto
tore escaped the responsibility OF
taxation TO pay their share, and at
thc same time provide sufficicnt
revenue for financing the State Gov
ernment In decent sort OF way. what
tnen can be the objection. In order
10 snow the operation OF the recon-
mendations contained herein. 80 far as
tne income tax is concerned. the fol-
lowing examples have been selected to
uusrate the result when applied to
fhe actual taxpayer.
i. a. owns n home which has been
assessed ut 100000 and n stock OF
merchandise assessed mt $4,000 90. A
tax levy of twelve mills would require
a to pay on his property taxes the
sum or $4,000 Now, suppose that
AS net ir rcome for the year was
vb.000.o0. and that his dependents
were wife and two children. Under
the proposal plan he would pay,
ti) The property tax OF
nine mills, or ..........s los 90
cd An income tex OF 1-2 of
per cent. on oil over his
exemption. or ......... 1900
hiG
Making q total OF f.........Sl2l.O 90
IL will be seen that "a" will pay a
property, and income tax totaling
@1s-oo ilsss than he would pay under
the present system. This difference
would, seceaariiy. bc paid by some
ono VINO has heretofore escaped tax
alton.
.. "B" has a, family of four Ca wife
and three children). and he operates
. farm and country store. The farm
and MERCHANDISE business are asses
ID at 100000. with a State tax
levy Of twelve mills he would be re-
CURED to- pay tax in the amount of
$4,000 Under the plan recommend
ed. and assuming that his income wns
100000 year. no would pay as fol-
lows:
iD Nine mills on s2o.ooo.Oo,
-. 49,, - $4,000
CID Income tax OF 1 per
cent. on all over exemption 54.0O
A total tax Of =. =. =. s2s4Do
In this case "B" would pay Sc. 90
isss on both property and income than
ne 10 paying under our present sys-
TEN. This difference. OF course, would
be paid By some one who is not pay
ing taxes.
y. A broker maintains an office
which furnished with $1,000. 90
worth OF once equipment, and ne
makes an annual profit Of $4,000. 90.
Under the present system Of taxation
ne would pay twelve mills on 81 600
Tor tho support Of the state govern
ment or t12.00 taxes. Cndcr the pro-
posed plan he would pay property tax
IN the sum OF $500 and income tax
In the sum OF about $4,000.
In this case the sum of nearly $500
would be transferred from the tax on
property owners to the broker who
has heretofore escaped the RESPONSE
silities OF taxation.
=. "A physician. living In the city.
owns no property except his home. an
automobile and professional equip
ment. which have been assessed Mt
Siz.ooo.0o. and his annual income is
something like $50 10000. Under our
present system his income escapes
TAXATION and he would ny property
taxes OF about $4,000. Under the
proposed plan the physician would pay
property tax OF about s1,500.o0. This
substantial increase represents an
amount which would be transferred
from tho property owners tax to the
physicians income. which has here
toforo escaped taxation.
8. An attorney owns no property
except his office equipment and law
library. which has been assessed at
seoo. o.oo, and his annual income is
anout 100000. Under our present
systom OF taxation this attorney would
pay property taxes in the SUM of about
$500; whereas under the proposed
system he would pay property and
income taxes Of about s250.Oo, which
amount would represent Just trans
Ter from the taxes of property own
era To tho income OF the nttorrox,