Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-10-11
GOVERNOR GIVES REASONS
FOR STATE INCOME TAX

rate of five mills, Governor Hard
wick continued, is utterly made
quate" to meet the demands Of a
growing and progressive state. In
operation, he said, it is unequal and
unjust, bearing most heavily upon
those who are least able to bear the
burden, and bearing most 1i"htly T'o-
l those who are most able to bear
he burden" Attempts TO equ4I..e
the assessments of property as be-
tween the several counties, he fur
Their asserted, have been a failure
Cause the system is inherently un-
workable.
He showed by quotation from the
tax reports that the property assess
ments in 1920 were as follows, ac-
cording to classes:
Cash. notes and accounts 81,500,00O
Merchandise ........... 1880, 900
Stocks and bonds .... 100000
Household goods and kit
chen furniture 800. 41,40O, 900
Horses and cattle ...... 63,400,O00
Farm implements ...... 100000
He showed that visible property
has increased in assessed value since
1875 no less than 416 per cent, while
invisible property has increased in
assessed value only 119 per cent.
He cited records of bank deposits,
etc, to show that not over 10 per
cent of the money, notes and ac-
couSts of the state were returned for
courts OF the state were returned for
Urges Income Tax
All Of which goes to prove, with
other facts and figures which might
be cited, the governor declared, that
the state should abandon the field of
property taxation, leaving it to the
counties and municipalities, and
should support its institutions by a
state income tax. He announced his
purpose to urge the income tax in
speeches to the people and urge the
stltutlonal amendment for submission
to the people.
With an income tax, the governor
pointed out, the state can utilize the
income tax returns of the federal gov
eminent, thereby reducing to a mini
mum the cost of administering the
state income tax, and relieving the
taxpayers of the necessity of making
two returns, the one return to the
federal government serving both pur-
poses.
state income tax rate substan-
TALLY less than the federal rate, the
governor declared, would produce for
the state an abundant revenue to sup
ply the needs Of it's institutions, and
"Oulu IdlSS SUCH revenue more
fairly and justly than 1t is raised to-
day by property tax"
The income tax, he said, is not
perfect panacea for all tax ills, but
undoubtedly "is the most equita BILE
and perfect system yet devised by
the human mind" AS to rates and
classes of state income taxation, he
had the following to say:
THE limit at which we should be-
gin fO fax incomes ShOI113 he nett 10
too high nor too low. 1t ought not
to be too high because if we tax only
the rich and Well-to-do, t would have
tendency to create classes and
make class hatred among )ur people
since those who did not pay taxes
might wish to buE len the rich heavily
for the maintenance of a WaSteful
to the support of which
they did not contribute, nd in which
they would have no stake.
THE taxing limit should not be
too low. in order that a poor man
barely able to support himself and
family may not have a burden put
upon him heavier than he can bear,
thus in the end to become a public
charge. 1t should be graduated so
tina. the burden can be distributed
somewhat in proportion to ability to
bear it.
in it's final form, three great prin-
clples of classification should be OBJ
served in such graduation, namely:
First. the rate should be lightest
on incomes produced by toll, whether
physical or mental; second, the rate
should be next lowest upon capital
invested in productive enterprises,
which employ labor and support and
develop the community, third, the
rate should be next highest, except
in so far as public policy in connec-
ton with the sale of government Sc
curlties shall otherwise suggest, on
capital invested in funds that run no
risk, take no chance, employ no labor
and develop no community
Would Help Farmers
AS to the relief which would be
afforded by state income tax, Gov
ernor Hardwick said in conclusion:
The shoulders that guide the plow
are bent with a burden heavier than
they can bear. l propose relief for
them.
The owners of humble homes, In
country. town and city, are taxed un-
til contiScation knocks at their doors
| propose relief for them.
THE meager household effects of
the masses, with practically no real
the money and solvent debts of this
state, and almost as much as all the
vast stocks of merchandise in Geor-
gia. l propose relief for them.
The tools of the farm laborer and
mechanic bear a tax burden three
times as heavy as all the stocks and
bonds of Georgia. l propose to lift
that burden from the implements of
toll with which the loWly earn their
daily bread"
Finally in conclusion, declared
Governor Hardwick:
eff we are to educate our children,
improve our highways and maintain
the proud position of Georgia as the
Empire State of the South, the wealth
of the state must foot the bill, and
not the poverty. We must collect the
revenue from those who make mon
ey, not from those who lose it; from
those that have, not those that have