Milford chronicle., 1924-12-19

tions and sources not bearing di
rectly by taXat on upon the peop {
of Delaware?
From Corporations:
Corporal on Franchise
| axes ptfO.UUV
ital Taxes " 176 500
Corporation Void Charter 6,OOO
Total from corporations 1925, ,5OO-469o
U. S. Government Dis
Schools '.,,.... 10000
Income from the Public
School Fund ................. 34,4OO
Total from all sources 1892, ,9OO-49q %
These totals are 46 and 40 per
cent. of the cost of 192S-24 state
expenditures for operation and
maintenance of schools.
9. Could not the rate Of corpor-
ations franchi~e taxes be increased
thereby obtaining more revenue at
no burden to our people?
The rates for these taxes and fees
coud be increased but such a course
would be most unwise.
Since 1899 by wise leg Station and
fair dealings a 'arge number of cor
porat ons have been attracted to
| Delaware. While we are not under
l contract or obligation not to in
| crease our rates, if we did so, we
would in a sense break ia tn with
those who have come to Delaware
and would cease to attract new cor
porat!Ons.
The experience of New Jersey
should warn us against charging
e. essive rates or making trouble
some regulations. In 1913 New
Jersey enacted laws more or less
burdensome to corporations. In the
following three years revenue from
this source decreased 80 per cent
which result led to the repeal of the
unwise laws.
In comforting a charter a state
gives ve"y little and should, there
fore, charge little and should make
only such regulations as all COR
porations are glad to comply with.
10 Can Delaware do anything to
attract ore corporations and there
by increase its revenue?
Yes.
" by COllSAuCAAAAS Jul ~ Ns9CAAN
laws a contract with the existing
corporations, making no change
that will heap burdens upon them
either by imposing greater taxes, or
by requiring troublesome reports,
or by annoying with regulations;
(2) BY studying our corporate
laws in order to introduce features
to the advantage of the corporations
end also make quite clear the mean
ing of the laws;
90 By executing all business be-
tween State and corporations with |
dispatch and without annoyance.
IL Would not Delaware be open |
to censure for encouraging corpora |
tions in such a manner?
No. 1t is generally agreed that
the corporation is the most effective
wy of conducting modern busine
is a small state; the cost
of administering it's affairs and
it's schools is less than
that of any other state east of the
Mississippi river. Therefore, our
need being small, we can afford to
offer corporate charges at very
low rate. l.
We have seen above that 46 per /.
cent Cf our state expenditures for
The operation and maintenance Of
schools, about SG28,OOO, is being
paid by taxing corporations.
If from a like number of corpora
ions New Jersey tried to get
enough to pay 46 per cent of its
school operation it would have had
@ charge - hes as much.
Delaware cannot be justly criti-
,ized for taking advantage of it's
lnioue position among the states
Ind doing erything possible to
oster this important source of reve-
lus.
1f = we cannot safely increase
,ur lue from corporations, can
We or.ain more money from per-
onal propAE.y. real estate, income (
axes, il. Asritanees or from other t
ources?
Yes. Several soI~"as additional |
evenue may be cors.ueced. FOR in {
tance, if we take to present taxes t
S a measure of the burden of cost 2
f ed. ion on the people of Della Z
rare, we shall find by comparison f
nth other years and with other +;
tates that we should be able to pay \
lore. 1
1S How may mc.e money be e
aised
Cons. der the following possible q
Ources of increased income for the Q
tate: f.
First: Real Estate Tax. This tax =
assessed in Delaware on the value >
{ land and improvements, such as :
OF all kinds, sewers, SIDE
.alks and so forth. There have .
cen several ..ttempts to assess y
at it's actual value, but it is Il
o. known how far this effort has Il
cen successful. For school pur-
Oses, Delaware real estate is taxed s.
. a very low rate, whatever the as n
,ssI-.ent may be. p
By comparison we have (for
.hool taxes only): o.
Tax ON 500 Assessed Value n
elaWare zoe u!
ennsylVania ....,........................S1. OF
averages of all townships ia
in Chester county.) ia
eW Jersey 81
average of Salem county,
Although it is not proposed in this v
an to raise the school tax on real
tate in Delaware, higher rates
I'VE been collected in earlier years.
Or examples: =