Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-03-30

Speaker, I desire to offer an amend
ment to House Document No. 50 as
follows:
House. Amendment "a" to House
Document No. Sc.
Section of House Document No.
sc is hereby amended by adding
thereto the following words: And
the said medical school of Maine
shall be opened to both sexes"
The amendment was adopted, and
the bill lhad its second reading as
amended by House Amendment "a"
On motion by Mr.. Hussey of
Blaine, the rules were suspended.
and the bill given it's third reading
as amended by House Amendment
"a"
The SPEAKER: The Chair pre-
sents for consideration, House Doc.
No. 81, report of the committees on
judiciary and appropriations and fl
nancial affairs, on Resolve in favor OF
the Maine Medical School, tabled
pending the acceptance of the report,
on motion by the gentleman from
Lisbon, Mr.. Gerrish.
Mr.. Gerrish then moved that the
resolve be substituted for the report
of the committee.
The motion was agreed to.
On further motion by Mr.. Gerrish,
the resolve received it's two readings
under a suspension of the rules. and
was passed to be engrossed.
The SPEAKER: The Chair pre-
sents for consideration. House Doc.
No. 262, Report of the committee on
! taxation on resolve amending the
| Constitution relating to income tax,
tabled pending the acceptance of the
report of the committee, reporting
Ought not to pass" on motion by the
gentleman from Gardiner, Mr.. Gar
, diner.
Mr.. GARDINER: Mr. Speaker, I
move that. the bill be substituted for
the report, and will make a few se-
marks in support of that motion. The
members Of the House will note that
House Doc. No. 262 proposes an
amendment to the Constitution to be
voted upon by the people of the State
in September, 1922. The purpose of
the amendment is to provide that the
Legislature shall have power to lay
and collect taxes on incomes from
whatever sources derived. That is
the whole purpose of the bill, to pro-
vide that in September, 1922, the peo-
pie of the State Of Maine shall vote
upon constitutional amendment as
to whether or not this Legislature
shall have the power to levy an in
To
tax in itself; it merely proposes to the
people of the State of Maine the ques-
ton of whether the Legislature shall
have the power to levy an income tax.
. This question of the advisability of
the Legislature having the power of
levy1ng an income, tax narrows flown
essentially to ole particular class of
property, that is, intangible property,
and by Intangible property I mean
stocks and bonds, certificates of own
ershlp in corporations or the obliga-
tions of corporations which yield Iii.
Nidends or which bear interest to the
owner. The property is represented
by mere paper certificate which is
readily concealed from the local as
SCISSORS, and although taxable by law
in most cases. I shall show you That
about $25, 100000 of this intangible
property is discovered by our assess
ors while more than 100000, 900 of
such property is owned by the resi-
dents of this State ...s. .
An income tax is the fairest and
the most satisfactory method of taxa
ton for reaching this class of prop
inv ;e,
largely only as it yields income to the
owner, and that therefore is the mea-
sure of the ability to pay a tax. !
snail allow you that at the present
local rate of taxation, being rigidly
enforced by the assessors. would
amount to almost confiscation. That
is one of the difficulties local asses
sorS have, ard you want an assessor
to enforce tax which means practi-
cally confiscation, and what intangi.
Bile property is being taxed at the
present time is being taxed at an un.
fair rate. but the amount that bears
the tax burden is small in compari-
son with the amount that escapes any
share of the tax. burden.
The history of the attempt TO en-
force a tax upon this class of intan-
gible property is an old one. MY men,
DRY does rot go back SO very far, but
have taken pains to look up the his
tory of this suhject to some extent
l have here the report of a special
committee appointed by the Legisla-
ture OF 1889 to investigate our tax
laws. You will see that the problem
that confronts us now was then in
existence, and I Will read to you a
short extract from that report:
THAT all taxable property is not
equally assessed under our present
laws, and that land and houses and
cattle, visible and tangible property.
are bearing an unequal share of the
public burdens; and that farmers es-
peclally, as prominent stock raise.
concisely put it. are drawing at the
snort end of the yoke all conceSe.
That this complaint of the escape of
much personal estate from taxation.
and the demand for a remedy. has
moi been mere partisan cry, but a
well founded desire for a much need
ed reform, is apparent from the fol-
lowing extracts from the recommen-
dations of our governors. of both par
ties, during the last Is years, in their
messages to the legislature" And
then follow several extracts from the
addresses of Governor Dingley in 1874
and 1875, Governor Garcelon, Cover
nor Davis, Governor Plaisted. Cover
nor Robe. Governor Bodwell and Gov
ernor Burleigh in 1889