The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-04-24
SURVEY GROUP
SEEKS KEY TO
TAX RIDDLES
Committee GrappIeS With
Exemption Problems and
Revenue Losses.
INCOME LEVY Is ASKED
Out of State Holders of
Stock Get Dividends,
Make No Returns.

That tax Is best which can pluck
the most feathers with the least
noise from the goose"
This 'wisecrack" from the famous
Frenchman, Talleyrand, was used at
the second public hearing OF the In
diana tax survey committee today
10 indicate the problem facing the
committeeman.
They are intrusted with deYising
legislative suggestions to relieve the
present admittedly burdensome taxes
on Hoosier property holders. The
TaIleyrandism was advanced by
Eben H Wolcott, broker and one
time chairman of the state tax
board
What about the morals of this
goose plucking?" John F. White,
former city councilman, inquired.
Morals haven't entered into this
discussion" Wolcott countered. @
Income Tax Urged
He had urged an income tax to
relieve the burden on real estate
and a registration tax for securities,
with no exemptions.
The session was devoted to dis
cussion Of intangibleS and it general
IL vas admitted by investment
bankers and brokers present that
under the present law securities are
being sequestered to avoid taxation
which investors consider con-
nScatory.
Both Woleott and Donald Morris.
vice-president Of the Fletcher
Savings and Trust Company, adj
vocated abolition Of the present
exemption on real estate preferred
stock. They denied that it aided
greatly in building and said the
same thing would be accomplished
with mortgage bonds.
Gavin L. Payne, broker. defended
the real estate preferred stock ex-
emption and urged an income tax
as the only means Of securing
revenue from common stock
dividend recipients living outside
the state. He cited the Philadelphia
ownership Of the indianapolis Water
Company as a classic example.
Rate Payers Garry Load
The property tax on the Indian
apolis Water Company is paid by
the rate payers" Payne pointed out.
But the owner of the common
stock can live in Philadelphia and
collect his dividends without paying
q cent Of taxes in this state. An
income tax would permit the state
to collect"
Wolcott contended. that while tax
valuations have doubled in Indiana
in the last ten years, the wealth of
the state has tripled. He pointed out
that in 1920 there we're but $35.0O0,-
600 in exemptions and now there
are S16S824.O00 The exemption of
taxable property he termed one of
the worst features of the present
system
Morris would not exempt NUM-
cipal bonds, or any other form of
investment. He pointed out that
the exemption of Indianapolis NUM-
cipal bonds means nothing, since
they often are sold to New York
houses, where the Indiana exemp-
ton does not apply.
Exemption Tits Prices
Raymond jackson, investment
banker. asserted that the high price
paid for indianapolis bonds is
brought about by their tax exemn-
ton feature, bringing better bids,
however.
The mornings discussion brought
most favor to some form Of income
tax to relieve the situation. with
registration of securities, excise. or
even sales taxes, as other possibili-
ties.
State Senator ]. Clyde Hoffman,
chairman of the committee. presid-
ed. He urged an aroused public in
tereSt in the discussions and an
nounced that the next public hear
ingS will be in the senate May 7-8,
starting at 10 a m.
Taxation of corporations will be
discussed the first day. and the sec
ond Will be devoted to income tax