The Birmingham age-herald., 1924-09-21
DAVIS PROPOSES
 TAX ON INCOMES
 TO AID SCHOOLS
Only Fair Way To Raise Additional Education
 al Funds, He Says
SAYS REAL ESTATE
 IS OVER TAXED
Seeks New Constitutional Amendment Authorizing
 Levy On Inheritances
(State Capital Bureau)

MONTGOMERY, Ala, Sept. 20.- Real estate and ther tangible property bears too great proportion of the ex, pense of state and local government under the existing revenue system of Alabama, in the opinion of Attorney General Harwell G. Davis. Attorney General Davis recently declared in favor of an income tax, with it's pro- ceeds to be devoted to education. In discussing the merits of such tax, the attorney general declared that in his opinion the tax system of the state, as it exists without new sources of income, cannot be made to raise more revenue without increasing the inequality of burdens existing.
 Attorney General Davis is experienc- ed in taxation problems, his official duties making him legal adviser to the state tax commission, while he is in addition a member of the state budget commission, which analyses sources of income and outgo of the sate's revenues
 In expressing his views on the taxa ton problems of the state, Attorney General Davis stated
 Davis Gives Views
 Under the existing revenue system of Alabama there is not only inequality of assessment, but real esteke and other tangible property bears too great a proportion of the expense of state and local government. When the question of greater appropriations to public schools is presented usually there is proposed a millage tax on tangible pro- perty, which serves to increase the tax burden on the source now bearing the greater part of governmental ex- pense. It has always been found impos. sible to prevent gross injustice and inequality in tax burdens where a state depends on only one source of taxation for its income.
 Alabama depends on the tax on tangible property almost exclusively for its principal income. Consequently many inequalities in tax burdens exist Equality of taxation has been more nearly approximated by distributing the burden to several sources. This en ables the abolishment of the injusticet in one source, which results in a loss of revenue, and which could not be afforded if no other source of revenue was available, and the recuperation of the loss resulting from abolshing inequalities by securing revenues in an equitable manner from other sources
 Schools Need Funds
 Every person interested in educational progress in Alabama knows that every educational activity in the state is in dire need of more money. If this cause is given more money the state must have more revenue.
 These considerations influenced me to declare in favor of constitutional amendment authorizing the levy of an income inheritance tax for educational purposes. A constitutional amendment is necessary because as. a practical pro- position an income and inheritance tax cannot be levied under the terms of our present Constitution. A constitu- tional amendment is desirable because it would prevent the Legislature from ever diverting the revenue derived from this source from educational purposes. This would give the State another source of revenue and make possible the relief of some of the recognized inequi- ties resulting from the operation of our present virtually one source system. It should be borne in mind that while a new source OI JdAdtlOH VIII yleIu eOhic additional revenue that the chief reason for adding a new source is to secure equality of tax burdens. Unless this pri- mary is the guide in levying such a tax, the new source will not give the relief intended.
 "In this connection, it is not entirely out of place to mention that those states which impose no tax on real estate for the expenses of the state government are states which are able to and do derive revenue from other sources than tangible property.
 Farm Bureau Make Study
 My study of tax systems and the practical application thereof has con vinced me that our tax system as it existe, and without any new sources
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