Evening star., 1925-07-13
Farm Taxation
Agriculture Held to Bear I'm
just Burden.
BY ARTHUR CAPPER,
Senator From Kansas.

I have been much interested re-
Gently in q study of a taxation sur
vey made by the United States De-
partment of Agriculture in Upton,
Miami and Monroe Counties of Indi-
ana. The researchers found that the
average annual return on rented
farms was 3.S per cent. The investi-
cation showed that the average re-
turn on rental property in the town
was 4.6 per cent and on bank stocks
per cent.
Assuming the average tax rate was
per cent, 1t Is evident that taxes
take 25 per cent of the income from
bank stock, 42.5 per cent of the city
rent and SIG per cent of the farm
rents.
Yes, I know that in some places
city taxes are higher than those in
the country. 1 also know that other
peculiar things occur, such as tax.
exempt bank stock, at least SO far
as the owner is concerned, and that
there is variation in rents, taking
the country over, and a variation in
farm values. But virtually every sur
Vey made anywhere shows that an
unjust share of the country's burden
of taxes is being carried by agricul-
ture and that this has been increas-
ing. 1t is one of the glaring faults of
our administration of government
especially in such States as Kansas,
where the general property tax is the
main or only source Of revenue.
Farm Tax Increase High.
Taxes per acre on farm real estate
increased 159 per cent in Kansas from
1910 to 1928, while selling value ad-
vanced only 35 per cent.
And taxes on farm lands and farm
property are no per cent higher
throughout the United States than in
1914, two Government departments
report, which also report that the
selling value Of farm products has in
creased less than 90 per cent.
What makes these shocking dis
PARTIES serious. as well as unjust, is
that the farmer cannot spass on
his taxes as the merchant does by
adding them with his overhead to the
price of goods, but must take them
out OF his already too scanty return.
May Force Farmer Out.
If this process should continue in
definitely farm owners might event
ually be forced to move from the land
and the state be compelled to take
over the farms. Several investiga-
tors, taking a long look into the
future, already have mentioned this
gloomy possibility.
In his last annual report, the late
Henry Wallace, former Secretary of
Agriculture, who was a keen student
of farm taxation problems, said
farmers find their taxes heavy be.
n Nf he
They are levied on the selling value of
the property, but are normally paid
out of the income. Too often the
amount of the tax has little or no
relation to the amount of the farm
er's income"
Exactly. that's the whole point. In
this highly complex industrial age
we have allowed an inefficient and de-
structive system of taxation 10 be-
come firmly rooted in American life.
So far as State and local systems
go. 1t completely violates the axiom
that taxes should be levied accord.
ing to ability TO pay, the basis on
which any equitable taxation system
must rest.
States Making Progress.
But we are making progress in
most States: in Kansas, for example,
with a gasoline tax and a better
method Of taxing personal property
which should tap a new source of
revenue. And probably we shall go
further. 1t seems to me due consid-
GRAFTON should also be given to a gross
production tax, on oils and minerals;
to a tax on non-essentials, such as
tobacco and commercialized entertain
ments; and to a State income tax.
We might as well face the question
squarely, for taxation is one Of the
great economic problems of the United
States, and will continue to be. De-
spite all that can be done-and much
should and can be done in certain
directions-the amounts of tax money
collected for our several systems of
government will continue to be large.
Within the next generation vast sums
will be expended on roads, waterways
and education. Our rapidly growing
country will demand these expansions.
As matter Of wisdom and of simple
justice the tax burden should be
placed fairly, according to ability to
pay.
That is all farmers have ever asked.
There is no objection on the part of
the producers to contributing the
share Of taxes which their business
earns. And certainly that is a sound
position.
Let US hold down government ex-
penses in this country to as low a
point as consistent with public policy,
and then distribute the taxation bur
den according to ability to pay. That
is the basis on which We can make
the greatest progress in the happier
years we are entering.
Copyright. Ie251