Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-08-02
BY EREN H. WOLCoTT,
Former State Tax Commissioner.


| Among the constitutional amendments
to be voted upon in September this year
none command such attention as the two
relating to taxation.
The first amendment permits the legis
| lature to provide by law a system OF
taxation, the other amends the present
constitution by permitting "the taxation
of income"
Practically all opposition to these
amendments is centered upon the first
or tenth amendment to be voted upon.
This opposition is based almost entirely
upon the fear that such broad and un-
limited powers granted to the General
Assembly will lead to excuses and cause
the legislature to favor unjustly special
classes for taxation purposes. Exper-
fence in other states proves that these
fears are unfounded.
We all admit that the law as enforced
now Is burdensome to the extent Of being
almost unbearable and 1t is because the
law has been enforced that this con-
dition has arisen. Prior to the Enforce
ment Act, effective in 1919. property was
not assessed at its true cash value. Since
then it has been, and it is because Of
this that such wide discomfort has arisen.
TAXATION SECTION
ADOPTED IN 1851
In 1851 Section 10 Of the present con
stitution relating to taxation was
adopted. This is known as the general
property tax law, under which all prop
erty is assessed alike. This method was
satisfactory under the old conditions that
existed in 1851, when practically all the
property was visible and tangible, but
does not fit into present day conditions,
as wealth is almost equally divided be-
& h.. fyr-., oil t,rt IA a In
tangible, at this time
Just as farming, banking, teaching,
manufacturing, and all business methods
have changed since 1851 to conform to
modern methods and experience, so
should the taxation Of property be
changed. Under our present constitution
this is impossible, and the only way to
secure relief is by amending the consti-
tuition so that new methods can be Sc
cured
The fear Of those opposed to this
change Is not borne out by the expert
ence Of other States. II this change was
experimental and let us into untried and
improved methods, We might well hest
tate. but on the contrary, twenty two
States already have changed their con
stitutions along the lines OF these pro-
posed amendments and twenty States
have enacted laws classifying property
for taxation or using other certain classes
Of property as n basis Tor income tax
alton purposes. The income tax Is self
explanatory The classification tax rec
ognizes distinctions in earning power and
increased value that accrue to certain
classes Of property and assess these
classes differently at such rates as will
induce and permit the owners to list
them for taxation. There can only be
two methods Of taxation that experience
and practice have proven workable, Il
classification tax, taking into consider
alton various classes Of property, the
benefit that arises to them through ex-
penditures. raised by taxation, the in
crease In value due to income tax No
other ways are known, as all other forms
such as duties, stamp tax, excise tax,
etc. are forms OF the above named meth
DDS.