Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-07
GOVERNOR HARDWICK
ASKS TAX REFORMS;
PLEADS FOR ECONOMY


taxation by the state was recon-
mended to the general assembly by
Governor Thomas w. Hardwick in
message delivered by him in person
to the house and senate in joint SEES
sion Wednesday morning at 1l1'
O'clock His appearance before the
assembly to deliver his massage In
person established new precedent
for Georgia governors.
In recommending a state income
tax as a substitute for ad valorem
taxation by the state, Governor
Hardwick declared he was forced to
that conclusion by the complete
breakdown of the ad valorem sys-
tenn, not only in Georgia but in other
' states which have tried it. In this
he agreed with the special tax COM
mission who submitted their report to
the legislature in 1919. They rec
commended an income tax to supple
ment the ad valorem tax, but rec
commended a complete reorganization
of the processes of ad valorem tax
alton. They declared that the ad
valorem tax as now administered IN
Georgia is an absolute failure.
Agreeing with them on this propo-
sition, Governor Hardwick recon-
mended that the. state government
depart from the field of ad valorem
taxation, leave that field to the
counties and municipalities, and sup
port itself by a graduated tax upon
incomes.
He declared that the state income
tax would be cheaper and easier to
collect, would produce greater reve-
pue with less hardship. would bear
. equally upon all citizens, and would
be the means of obtaining revenue
from invisible and intangible proper
ty, which now is escaping state tax
alton almost entirely.
In addition to a state income tax,
Governor Hardwick recommended a
gasoline sales tax, poll tax for
women, increase in the gross sales
tax of soft drink syrup manufac-
turers, abolition of useless" boards
and commissions, consolidation of
whole educational system under one
board of regents to supervise the
University of Georgia and its branch
es and the colleges and common
schools, consolidation of all elee-
mosynary and charitable institu-
tons under one board of manage
ment, abolition of the department OF
archives and history and transfer OF
this work to the stale library and
a careful examination of the ex-
penditures of all departments.
Analyses states Finances
Leading up to his accommodates
O. an income tax, Governor Hard
wick presented complete analysis
of the states finances as they stand
a. present. The situation is extreme
ly grave and must be handled frank
Nv and fearlessly, he declared, to save
the state from practical bankruptcy
insofar as revenue is concerned.
When it comes to assets and liabill-
ties, he showed, Georgia's condition
is far better than majority of the
states, for Georgia's bonded debt is
less than 100000, while Georgia
owns railroad worth more than
s2O,OO0,0O0, and which produces a
a revenue of $4,000 a year. The diff
/ ficulty, he showed, is not a lack of
assets but lack of revenue.
For this he blamed nobody. 1t is
case, he said, where the OK is In
the ditch and the business of the
legislature is not to waste words of
recrimination as to who put it in the
IF hn
ditch.
Governor Hardwick showed that
1920 appropriations were $9,9S5,682
and 1920 revenue was $S,970,244,
leaving deficit of s965,43S. He
showed that 1921 appropriations are
$9,S45,62S and deficiency appropria-
lions, which must be made, will run
them to. S11,159,000. He showed that
1921 revenue will be only $S,S22,645,
and that the. 1921 deficit will be ST.
1882. This on top of the 1920 de-
n felt will produce a total deficit of
s3,547,421.
What can we do to strike a bal
ance?" the governor asked. Answer
ing the question, he urged:
/. That unexpended 1921 appro-
priations be cut to the bone.
g That additional special taxes
be levied and collected this year,
among these a tax of one cent a
gallon retail sales of gasoline, which
he estimated would produce SS00,000;
poll tax for women, which he es-
timated would produce from S250,000
to $500, 900; an increase of the gross
sale tax on manufacturers of soft
drink syrups.
3. That the rental of the Western
Atlantic railroad, $4,000 a year, be
funded for a temporary loan to ex-
tinguish the deficit
Future Financial Policy
AS to the future financial policy
which the legislature should follow,
pending the establishment of a state
income tax. which he did not believe
could be put in operation until 1924,
Governor Hardwick recommended:
l. That all appropriations be held
strictly down to the limit of actual
revenue.
9. That useless boards and COM
missions be abolished, among these
the boards Of trustees in charge of
the University of Georgia and its
branches, and the district agricu!-
tural schools, numbering nearly 300
members, and that the whole educa-
tionaI system be put under one board
of regents, who would supervise the
university and it's branches, the dis
trict agricultural schools and the
common schools, making one cohe-
sive and co-ordinated system of edu-
cation, and instituting large econo-
mics in the matter of purchasing