Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-05-15
TEXT BOOKS
DEPEND ON BOOST
IN STATE s INCOME
Cow Hardwick Warns Pres
ent Revenue viii Not Pro-
vide for Any Of Proposed
Additional Expenditures

Neither free school books nor in
creased Confederate pensions nor
any of the other proposed additional
expenditures by the state will be pos
sible unless the revenue of the state
is increased, Governor Hardwick will
advise the legislature in his farewell
message to be delivered upon his re-
tirement when the Legislature con-
venes the fourth Wednesday in
June.
Discussing Saturday the questions
Of state finance, taxation, pensions,
free school books, ETC., Governor
Hardwick informed the newspaper
men that he intends to present to
the legislature in his farewell mes
sage a general outline of the states
affairs and . recommendations con-
corning tax revision.
He will reiterate, he said, his pre-
viously expressed views, which are
we'll known throughout the state, in
favor of a state income tax to take
the place of the present ad valorem
system.
Revenue of the state for the pres
ent year will just about balance APP
preparations, Governor Hardwick
said. Comptroller Wright and Tax
Commissioner Fullbright. who are
closely in touch with taxation mat
ters, have advised the budget COM
mission that there is not likely to be
any substantial increase of tax val
ues last year as compared with this
year. This means that 1924 revenue
will not he substantially in excess of
1923 revenue.
These estimates are predicated
upon the assumption that the pres
ent tax laws are continued in force.
If the enemies of the tax equaliza-
ton law should succeed in their an
nounced intention to repeal that law,
the immediate result will be an enor-
nous shrinkage of tax values, in the
opinion of Commissioner Fullbright
and many others who have studied
the subject. This would mean, of
course, corresponding shrinkage of
revenue next year,
Status of States Finances
Thus the situation Of the states
finances resolves itself into the fol-
lowing elements, Governor Hardwick
said:
1. Present appropriations cannot
be increased without a corresponding
| increase of revenue.
/ 2. If the tax equalization law is
repealed without a substitute reve-
nue. measure being enacted to take its
place the states .reenue will shrink
next year at least $1,000,000, if not
far more than that amount, and APP
preparations will have to be reduced
in the same proportion.
3. If the legislature undertakes to
satisfy the widespread demand for
increased Confederate pensions, for
free text books and for other in
creased expenditures along many.
lines, and at the same time repeats
the eax equalization law, and at the
same time provides no substitute
revenue legislation. then the states
finances will go entirely to pieces
and the credit of the state will be
seriously impaired.
eff the Legislature undertakes to
provide increased pensions and free
school books and all these other
things" said the governor, land
does not provide revenue TO balance
these increased appropriations, the
treasurer cannot pay the warrants
drawn upon him by the governor and
we will have the spectacle of the
warrants of a governor being hawked
around like worthless script"
| The governor pointed out that
state income tax cannot be put in
operation Until 1925 if the legislature
passes it. A, state income tax re-
quires a constitution amendment.
The earliest moment at which a con-
stitutiOnal amendment can be sub
mitted to the people is the general
election in November, 1924. If sub
mitted and ratified at that time, the
amendment could not be enacted into
law to take effect before the year
1925.
To Urge Income Plan
The governor said he would urge
the legislature to pass for submits
sion to the people g constitutional
| amendment providing for a state in
come tax in place of the present ad
| valOrem tax system, would urge the
| continuance Of the tax equalization
law in force until the people vote
upon the proposed income tax; would
! urge the legislature to hold appro-
priations at the present level in the
| meantime.
Additional revenue cannot be
raised by imposing additional taxes
upon occupations and business con-
Germs, the governor said. Already
| these taxes are burdensOme and OBJ
! nOXious, and the cOnstitutiOnality Of
more than one of them is under at
tack in the courts, he pointed out.
| He does not believe public sentiment
| would tolerate a general increase of
| occupation taxes.