Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-07-04
GOVERNORS INCOME
TAX BILL CAN'T PASS
De CLARE

That the income tax bill advocated
| ty Governor Hardwick cannot mus
| ter at this time the tWO-thirds vote
of the house and senate, which is
necessary to pass constitutional
amendment, was the opinion eX-
pressed Saturday by legislative lead
ers who have canvassed the senti-
ment.
Supporters of the income tax bill
claim to have a majority in the house
and the senate, and express the be-
| lief that an income tax in some form
will grow in favor as the session
progresses. They hope to have the
votes to pass the bill before the ses-
sion ends.
Supporters of other plans of tax
revision likewise claim majority
but not a two-thirds majority. AS
between the claims of the two groups
| it seems safe to estimate that more
| than tWo-thirds of the house and
senate are in favor of some sort of
| tax revision, but that an agreement
of opinion on any particular plan,
carrying with it enough votes to pass
a constitutional amendment, is rath-
er remote prospect at this stage Of
the game.
Tax revision leaders of the house
and senate will press the issue
when the legislature reconvenes this
week, at II o'clock. Wednesday
morning, after holiday in honor
of the Fourth of July. They say
they hope to bring the question to a
definite outcome one way or The
other m the early stages Of the ses,
sion, to avoid the complications in
cident to delayed action when the
session nears close and authors
of scores of bills are clamoring for
a hearing.
Although Governor HardWlck has
advocated state income tax in
preference to any other plan of tax
revision, he stated in his message to
the legislature on Thursday, and
has stated elsewhere on numeroua
occasions, that he would be quite
ready to accept some other sub
stitute plan for obtaining revenue
from invisible property.
Leading Substitute
| The leading substitute proposed in
| the legislature is the classification
plan of ad valorem taxation. This
consists in separating the various
kinds of property according to kind
and relative earning power. Real
estate constitutes one class; mort
cages and loans another class; cash
in bank another class; personal prop
erty another class. etc. A different
rate is levied upon each class, the
rate being highest upon the class
which produces the highest ratio OF
earnings, ard lowest on that which
produces the lowest return.
The governors principal objection
to this plan of taxation, he indicat c
Saturday. is that it would impose q
greater burden upon invisible prom
| erty thar a state income tax. He
believes the lowest rate which woulc
be imposed upon mortgages, loans
personal property, cash in bank
stocks, bonds, ETC., would be highei
than the rate which would be i'm
posed upon these classes of property
under Il state income tax.
Not wishing to drive away invest
ments. or discourage industrial de
velopment, or curtail credits, the
governor indicated, he would prefer
a state income tax to the classified
ton plan.
In the present state of agitation
concerning tax revision, it is not al
eXaggeration to say that the legis
lature is likely to go to most an,
length to obtain revenue from in
visible proper Leaders in boil
branches express the opinion tina
some extreme form Of taxation upol
all evidences of debt may be the on
come of a hastily enacted measure
unless some moderate compromis
can be effected.
In the meantime, thehe is a sen
timent in both house and senate TO
repeal of he tax equalization law
Governor Hardwick declared in hi
message Thursday that such legisla
ton would produce chaos in tn
states finances, unless some substi
tutute reVenue-raiSing act was pu
in its place.
The governor has openly an
nounced he will veto such repea
unless something to raise revenu
accompanies such a repeal.
Aside from tax revision, one c
the m5st important questions to b
disposed Of during the coming weel
is the attack on the state highwa,
department
Representative McMichael, Of Ma
ION county, who hammered the high
way department during the session
year ago, has pending in the hous
two resOlutions-one to adopt tn
minority report of an investigating
con- mite of last year, whicl
severely criticized the department
and the other to restrain the de
artment from making any diSpos
ton of the Gilbert county rock quar-
ry until directed by the legislature
Both resolutions are on the caler1
dar for final action by the house OF
next Thursday. The vote on thes
resolutions will furnish an interest
ing index to the sentiment of tn
house concerning the proposed stat
highway bond issue of $T5,GG0,00C
which also will be another dominan
question.
The highway committees of I'll
house and senate, at a joint meetin
Friday afternoon, heard spokesmel
of the various organizations whic,
are advocating a highway bond is
sue of $75,OOO,00O. The committee
came to no conclusion in the mat
ter, but postponed action unit
Thursday of the coming week.
Virtually no business has bee
transacted in the house or senat
since the Legislature convened las
Wednesday. Governor Hardwick'
7 message occupied Thursdays ses