San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-04-16
NEFF ASKS STATE
TAX ON INCOMES
CONTINUED from page one.)


/ CONTINUED from page one.)
class each year, approximately tire,
| and one-half million dollars.
Our franchise tax law should b,
amended 10 the end that these valu
able privileges received by corporate
interests from the sovereignty of thu
| state, be taxed in proportion TO the
| value of these corporate rights and
| franchise privileges. In this way
taxes would be placed where they be.
long and the states necessary revenue
will be materially increased.
Gross lax Receipts.
THE present gross tax law was en-
| acted by the Legislature Of 1907. Since
its enactment the rate OF tax imposed
has not been changed. During the
same period, however, the ad valorem
tax upon property has been increased
from 81 cents TO 10 cents upon the
one hundred dollars Of assessed valaa-
ton. During the same time, the
states assessed valuation has increas-
ed from S1,635, POI, 115 to S3,379,-
So, 796. 1t is therefore clearly seen
that the present gross receipts tax law
should be rewritten and the rates cd.
justed to present day conditions.
AS shown by the records in the
Comptroller's Department, the pro-
Guction of crude oil in Texas for the
year ending August, 1922, totaled lib,
6S3,60S barrels, having an aggregate
market value of $117,076,517. 1t is
estimated that the big oil companies
produce about 10 per cent of this All
nual oil output. AS a matter of equity
and as a matter of right, Texas has a
claim against these oceans of oil found
thousands of feet below her surface.
rs Texas to stand idly by and see
this stream of gold flow out Of her bor-
ders until the state is drained dry,
and not require this enormous wealth
to build its proportionate part OF our
schools, our public roads and our
eleemosynary institutions? Will the
Legislature permit this great natural
resource TO make millionaires of Few
and at the same time not do its part
in paying for those worthwhile things
that make a state both great and
good?
Would Tax Pipe Lines.
"The daily papers Of this state re-
Gently carried the statement that one
oil company made, last year, a clear
profit Of s5O,000,0O0 out of crude oil,
natural resource.
sour neighboring states, Oklahoma
and Louisiana, demand Of their ell
companies a reasonable compensation
for the support of their respective gov
ernments. Shall the people of Texas
continue to sleep at the switch while
the oil trains pass by?
This oil industry is not confined TO
production alone. Frequently, through
interlocking interests and close cor
porate affiliations, the occupation Of
producing is intimately associated
with the refining industry and the
pipe line industry-the natural by
products Of our oil wells. As part of
whole. these separate industries
should bear. in keeping with their
values, a proportionate share Of the
costs of the government, under the
protecting wings of which they create
their wealth.
Would Tax Middleman.
among the several activities OF our
big and busy industrial life there is
frequently standing the middleman,
who should not be overlooked in the
legislative study of our tax problem.
On the highway Of commerce he
stands between the cotton fields and
the factory; the ranch and the meat
shop; the oil we'll and its numerous
wealth-producing by-products.
This middleman may not be direct
ly concerned in the original production
Of wealth, but in the handling of this
produced wealth he makes his profits.
Having in his possession. perchance,
but little visible, physical property,
he pays but little tax.
"ln short. there are many men and
industries, earning enormous profits
in the handling Of capital vastly out Of
proportion TO the value of their tax
able physical property. Certainly this
wealth, thus accumulated. should con-
tribute its part to the support of the
government.
Under our present inefficient tax
law we have no effective way of COL
Letting taxes. In justice TO the state,
and in justice to those who do pay
tbeir taxes. all past due taxes should
BE- collected.
"As shown by the records. the de-
linquent taxes due on real estate alone
aggregate in excess of $6,000,0O0. Eff
receive laws should be promptly en-
acted whereby these past due taxes
could be collected, and the proceeds
turned into the treasury.
Equalization Of Taxes.
"Our state constitution declares
that taxation shall be equal and uni
FORM and that, all property in this
state shall be taxed in proportion 10
its value This language of the con-
sttution is definite and mandatory.
1t is. however, matter of common
knowledge that we have in this state
no uniformity of assessed valuations.
There can be no equality of taxation
except that which is based upon uni
formity Of assessments.
Upon this the sixteenth day of
April, coincident with the beginning
of your deliberations, the states gem
eral revenue account shows a deficit
amount of $3.50, 406.55. In addition
thereto, as shown by the record in the
Comptroller's Department. there arc
outstanding legislative appropriation