The herald and news. [volume] (Newberry S.C.) 1903-1937, 1922-01-17
TIE HERALD AND NEWS

Of the institutions must holI large
amounts OF cash, retain money which
should be TUNED iM;o the treasury,
incur obligations, and otherwise vio-
late the law or else cease operations
and close Their doors. The committee
has prepared biz to make suchex-
penditures legal bat providing proper
restrictions. .Ghc t.ue effect Of this
bill! is not TO CANT money, yut TO linz
it cyp2Md;tu.e ROW mad without
legislative control.
20. Providing such control, through
an auG.ting staff under the contingent
fumd committee. through better forms
and reports and through ether meas
uYes as will stop known leaks due to
the chronic absence of idlcness of
employees, less Of farm revenues re-
sulting from loose systems OF ham
ding crops and cash, the purchase
Of new equipment 'oy one state agency
when another agency has suitable
equipment rot in use. other equip
ment losses due to lack of control,
loss through exorbitant rates paid for
supplies. extravaganza resulting from
loose supervision by administrative
affairs and the like"
New sources Of revenue are abso-
lutely essential, the report says. In
South Carolina the limits of reason
able taxation Of visible property have
been reached and indeed long since
passed." the report declares. Amend
ment of the constitution SO as to
allow better taxation is the greatest
single reform possible, says the COM
mittee. At this point the committee
saws that the tax reform program rec
commended by the joint legislative
revenue and taxation committee head
ed CIV Senator J. Hardin Marion Of
Chester is excellent and the report
adopts these five major suggestions:
Constitutional amendments to relieve
the property tax limitations, education
and publicity campaign to inform the
people, adoption by the people of the
constitutional amendments, revalua-
ton of all property and survey for
all sources of possible revenue and
a comprehensive revenue act to be
passed by the 1924 general assembly.
Five new forms of taxation are rec
ommended. after careful consid-
Grafton of the merits of various forms
of taxation which have been advocat-
ed for South Carolina, having in view
especially that the action taken by the
general assembly must be in the dl-
rection of permanent solution Of the
tax problem and that if possible no
measures should be adopted which
would involve setting I'D admlnlstra-
tive machinery for the coliectlcA CT
taxes solely with a-view to relieving
the situation temporarily, the COM
mittee recommends rhe immediate
enactment of "an income tax law, an
inheritance tax law, and a gasoline
and eli tax law" the report says. Bis
covering these sources have been pre-
pared and will be introduced early III
the session.
New Sources of Revenue
A moderate increase in the corpora
ton license tax, a luxury tax and a
small tax upon hydro electric power
is also recommended. In speaking of
these new taxes and the amounts to
be raised by them if they are enacted,
the committee says:
"Of these taxes the one which IS
most equitable and least oppressive,
in that it can never fall upon persons
wro do not have the ability to pay
Chat is. who do not have net profits
over and above d far eXemptlon) is
the income tax. This tax can not eX-
act a tribute from man who has
little or no income and takes only
few dollars unless the income IS large.
The committee recommends that the
tax be paid only oy those whose
wealth is sufficient to make them Ia
bic to the federal income tax and that
the act be so drawn as to permit CO.
operation with the federal authorities
in enforcing the payment of taxes.
Although the rate of taxation of M
comes should be much smaller than
the federal rate. this source of reve-
nue. can be made to be one of the
most important sources of support tor
state activities.
"The inheritance tax, in substan-
TALLY the form now before the general
assembly, is believed to be sound IN
ond nractirol of adm!nlStr2