The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1922-10-13
HALLANAN CLAIMS
TAX EEEMPTION,IN
STAT|E..BIG MENACE
Tax Commission Says Tax
Dodging by Wealth Com
paTatiVely Easy Now.

shtp OF state unless public sent.
rtietit rises IN its might to defeat
the plang Of those who would turn
the nation from a government
supported by the people TO a peo-
PIE supported by the government.
said Walter S! Hallanan, state tax
commissio ner, In an address at the
annual banquet Of the Wheeling
Chamber OF Commerce here last
night
Ratefnalism In government and
"a advancement Of ideas looking
fifther encroachment by gov
fiment on the domain of private
industry, coupled with the serious
menace OF sax exemption. today
are towering barriers to the de-
yeiopment % state and nation. Mr..
Mailman warned. He suggested
that all the isms and fads and
fat1eies put forward by malcon.
tents disguised as leaders Of pro-
gresssye thought who would seeli
popular favor and public office TO
promote Their dangerous expert
r1ents be srimmarily relegated to
the junk heap and forgotten.
Nv I7allanan pointed to the
danger that lies in public owner
ship o. public utilities, when he
declared that II this were brought
about the mines and the railroads
alone would withdraw property
worth many billions Of dollars,
from taxation. and would more
than double the total of tax-eX-
empt securities. adding a new load
10 the already staggering burdens
Of utiexenipt property.
one OF the main causes for III.
creased tax burdens has been the
enormous rise in federal tax levlea
the speaker declared. In West Wiz
ginia In 1916, he stated, the per
capita federal tax hurdec was
SIS, as compared with $22.S2 per
capita in 1921 an increase Of 1882
per cent in five years.
MI Hallanan said. in part:
THE war has brought manv
CHANGES to our economic life. Old
Standards have been thrown into
the discard and many OF these
shall never be restored. But prob
ably the most pronounced general
attitude Of the war period has
been reflected II the tendency to
increase public expenditures AMI
70 add eheay!ly to the public debt,
We find II evident on every hand
Ia the federal government, the
state government and in every 10.
cal taxing unit, There is scarcely
d taxing district that has not
doubled its public debt during the
past five years. We find that IN
our own state we have today an
authorized state debt Of more than
fiSty, million dollars. growing out
6f the issuance OF bonds for the
liunidation OF the Virginia debt
and the Improvement Of our h gh-
ways whereas only three years
ago we could boast Of the unique
distinction of having not dollar
~ state debt.
Serious Condition PreeipItated
sThis tendency has precipitated
q serious condition IN our tax sit
uation from the great avalanche
Of taxs exempt securities that have
heens thrown upon the markets. We
have reached the point where tax
exemption has become real men
aee to the development of the
Is estimated that We have
In the nation today thirty billion
dollars in, ax-exempted wealth,
rhisshaa permitted many wealthy
citizens to become taX-immune
and this Investment tendency IS
being used now In the piling up
Of an immense reservoir Of mon
~ that should be used to advan.
tsge in the promotion Of industrial
enterprise through the regular
channels Of commerce. Some may
inquire why this Is true. The an
swer Isl plain and easy. The great
expansion in governmental func-
lions has brough condition
where tax burdens have grown
much more rapidly than our
wealth or population. and history
Is only repeating itself in the dis
appearance Of invisible wealth
from tax assessment when rates
become oppressive. In the mean
time the burdens Of increased
governmental activities and agen-
cies and the substitution Of func-
tiohsS for, the state and Its sub.
visions fof things which were
formerly left to the individual are
thrown upon those who are pos
sessedi Of visible property assets.
This burden has reached the point
where the average citizen has
feitsit perfectly legitimate to beat
sthe tax game, whenever possible.
That has been very extensively
done And yet we find today 4
Sentiment developing through ac-
tyities Of many so-called leaders
% progressive thought for a fur
ther invasion by this government.
of private industry. We find in tho
platforms Of many Of these So
called 'progressives' such projects
these:
Munictpalization and pub
i;e operation of public util-
tiles.
3. Naturalization OF mines
and railroads.
New cabinet officers to
preside over new departments
ot education and public
tealth.i
Increased supervision
oFs Individual and business
ACTIVITIES, with an enormous
~ Increased number Of gov :
erpmental agencies.