Cheraw chronicle. [volume] (Cheraw, S.C.) 1896-2005, 1922-01-26

i've PROVISIONS OF the acts.
The Committee recommends further
that a moderate increase be made
the corporation license taxes either on
the basis of tax upon corporate in
debtedness Or on the basis of capital
only as at present but with q higher
rate, that luxuries be taxed to the ex-
tent found to be practicable from the
administrative point Of view and hay-
Ing regard to the danger Of imposing
an excessive burden affecting any
means Of livelihood, and that very
moderate tax be imposed upon hydro
electric power.
OF these taxes the one which Is most
equitable and least oppressive, in that
1t can never fall upon the persons
who do not have the ability to pay
(that Is, who do not have net profits
over and above a fair exemption) is
the income tax. This tax cannot exact
a tribute from q man who has little
or no income and takes only q few
dollars unless the income is large
The Committee recommends that the
tax be paid only by those whose
wealth is sufficient to make them liza
Bile to the federal income tax and
that the act be 80 drawn as to permit
cooperation with federal authorities
in enforcing the payment Of taxes. AL
though the rate Of taxation Of incomes
should be much smaller than the fed
eral rate, this source OF revenue can
be made to be one OF the most impor-
tant sources of support for state ac-
tivities.
The inheritance tax, in substantially
the form now before the General As
senbly, is believed to be sound in
principle and practical of administra-
tion; the Committee recommends, how
ever, that the pending bill be so amend
ed as to levy a tax upon estates not
settled at the time Of the approval of
the act by the Governor. The stat
can secure from this source suffi-
cient amount of income to have an
appreciable influence in reducing the
general property tax without impos-
ing hardships. On the other hand the
act cannot safely be relied upon to
bring in any considerable income dur
ing the first year owing to the long
delays encountered in the settlement
Of estates.
The gasoline and oil tax has some
inherent advantages which make it
particularly suitable method for COL
lecting additional revenue. 1t is be-
lieved that no great opposition will
be encountered as regards the princi-
pie Of the tax or It's more important
features and that the details OF the
proposal can be worked out with little
difficulty.
The taxation of luxuriess is a matter
which deserves special support during
period of depression. Such taxes
when first imposed may be an incon
venience to the public; If they are
wisely levied, however, their elect.
far as they have any slight influence
upon economic conditions, Is to en-
courage thrift and in every case they
reach people who can afford to pay
small amounts for the public
The Committee has pre,ared hl'
containing provisions for moderate
taxes upon the major luxuries Of the
state-automobiles. soft drinks, ad
missions to amusements and exhibits,
and cigars and cigarettes.
The Committee has studied possible
sources of revenue not mentioned
above and Is impressed with the fact
that almost any of these would be
more desirable than the general prop
erty tax in its present form. A care
full study Of the effects of the laws of
other states and Of the administr.
tive diffculti\ 10 be encountered.
however, leads to the conclusion that
the General Assembly can best secureI
direct and entirely sound solution
Of the tax problems of the state. bv
devoting It's attention to the amend
ment OF the constitution and to the
above tax measures, especially recon-
mended for it's consideration-the in
come tax, the inheritance tax, the
gasoline and oil tax, the increase in
corporation license taxes, the luxury
tax, and a small tax on hydro-electric
power. To assist in the greatest pos
sible measure in securing laws and
administrative machinery free from
the serious defects common in some
other states, the Committee with the
cooperation OF the Tax Commission
and other state officers has drafted
concrete proposals for the cons'd
tion of the General Assembly. In the
light of the data available it is esti-