Daily Kennebec journal., 1924-04-03

iSutS, OiHuCT tWfuc, ana machinery.
property, and to recommend such
changes as might in their opinion in
sure a more just and equitable dis
tribution of taxation over all classes
of property in the state, it being un-
derstood that the recommendations
of this committee. if approved by the
Federal ton. might subsequently be-
come part of the legislative pro-
gram of the organization.
Your committee has held seven
meetings during the year, at AugusA
ia, Portland and Auburn, with prac-
tically a 100 percent record of at
tendance on the part Of it's men,
bers. We have been exceedingly
fortunate in securing the attendance
of several men who are deeply in
terested in the welfare Of our State.
and particularly well informed in
matters of taxation. These gentle
men have given freely of their time
and counsel and the thanks y; the
committee are due them.
A careful observation Of existing
conditions. considering the ever in
creasing demands Of our people for
schools, roads. institutions of all
kinds, and the proper handling of
social and welfare problems. leaves
at least a doubt in our minds wheth-
er we may reasonably look for any
great reduction in the expenditures
of government, either state, county
or municipal, within the near future.
While the present high scale of
values maintains. and while such in
sistant demands upon both local and
state governments prevail, we mush
continue TO be burdened by large ap-
preparations, in order that those
functions Of society and government
which the individual no longer per-
forms for himself, may be carried on.
Belief of such taxation laws as shall
reach all classes of property, and in
sure a sharing OF the expense Of
maintaining our governmental func-
tions by all those who are possessed
of property upon which n profitable
return is realized, thus compelling
all who enjoy the blessings of gov
ernment, to contribute to its support.
A century ago most of our wealth
was measured in real estate. With
the development Of civilization has
come a tremendous increase in the
value of personal and intangible
equal to that of our real estate. Yet
much of this intangible property
yholly or partially escapes, taxa
ton. The total amount OF such
property in Maine Is believed by
those who have made the closest
study of the subject to be not less
than five hundred millions of dol
lars, of which less than five percent
pays any tax. Thus real estate
which once represented all of our
wealth. and paid all of our taxes.
now represents but one-half of our
wealth but still continues to carry
practically the entire load Of taxa
ton. Such a situation is manifestly
unfair to agriculture, and bears with
peculiar severity upon the country
districts.
Nor is the reason for such a large
percentage of intangible property
escaping taxation difficult of discov-
cry. Such of our money. stocks,
bonds and securities as are now be-
ing taxed, are treated in accordance
with a provision Of the constitution
which declares that "all taxes upon
real and personal estate assessed by
authority of the state shall be appor-
toned and assessed equally accord
ing to the just value there off,
In the case of the particular class
of property which we are now con-
sidering, such treatment is unfair
and impossible. Investments and Sc
curities yielding return OF from
four TO six percent IL assessed and
taxed equally with other property
to the just value thereof"
at the average municipal rate of S5
mills would soon lose their attrac-
tiveness, and holders thereof would
turn to one of two methods in safe
guarding their investments. either
or convention into tax
free securities. The legislature Of
1913 laid the foundation for more
plan Of taxation Of this
class of property when II provided
in a constitutional amendment, later
accepted by popular vote, that "the
legislature shall have power to levy q
tax upon intangible personal proper
ty at such rate as 1t deems wise and
equitable without regard to the rate
applied to other classes OF property"
The present need Is, in the opinion
Of your committee. law that will
reach property designated as intan-
silbe and will not, at the same time,
be confiscatory in its nature. Author
zed committees composed OF emf
have repeatedly recommended such a
aw and several attempts have been
made toward its enactment. We be-
ieve the time has come for a deter
mined effort to provide for the tax.
ltion OF all profit-bearing securities
md investmentsand that such a law
,an be framed and put into effect un-
Ter the provisions Of the mentioned
amendment.
The plan we now propose would, \
however, vary in one particular
rom the previous efforts along this
Inc. in that 1t would recognize as |
l basis of valuation and taxation the |
income or profit bearing qualities !
If the investment. Much Of the in !
tangible property OF our state is |
Welding satisfactory and handsome |
'eturns to owners while other hold. |
ngs represent no income whatever.
Evidently injustice would result !
rom any attempt to subject these |
wo classes Of intangible property |
o the same scale Of taxation.
Your committee, then recommends |
he early enactment of such legisIa-
frv, aAn