Evening star., 1933-01-24
MISSISSIPPI DEBT
CUT BY SALES TAX
Governor Invited by 81 States
to Tell Legislatures
About System.


JACKSON, Miss, January "a
IN.AN.A).-Mississippi enjoys the dis
tinction of being the only State in
the Union that has adopted con-
structive plan of balancing its budget
and successfully curbing its mounting
deficits, according to the supporters Of
Gov. Conner.
When the Legislature met in Janu-
ary. 1882, the treasury books showed
. deficit of approximately $4,000, 900.
Nor was this all. The property system
OF taxation also had caused more than
one million acres of land to revert to
the State because Of non-payment OF
taxes.
The Legislature after a long and
bitter fight resorted to the retail sales
tax system, which was put into effect
May /. The revenues from this tax
have made it possible for Mississippi to
meet all Of her outstanding obliga-
tionS in the way of bond issues and
interest and at the same time defray
the ordinary expenses of the State gov
eminent.
Mississippi is thereby more nearly
out of debt than any State in the Union.
Her present financial condition is de-
clared due largely to the adoption Of
the retail sales tax system, which has
brought in more revenue than its pro-
ponents figure would be possible under
such system.
Bill Passed by Slim Margin.
When he presented this system of
taxation to the Legislature, Gov Con-
ner was assailed on all sides, and only
succeeded in putting the bill through
Houses hu iOritiac
day he has received invitations to visit
81 of the 4S States in the Union where
Legislatures are now In session and give
them facts and figures concerning
Mississippi's experience with this system.
II cannot possibly accept all Of these
Invitations" the Governor said. but
the State Tax Commission Is forward
ing to the various States the cold facts
and figures concerning our experience,
and legislative committees can analyze
them as they see fit"
Speaking on the general subject Of
taxation, Gov Conner said:
1.-THE property tax system grew up
in our country as a chief source Of
revenue in providing membership In
an exclusive social and political club.
That has not only been outgrown. but
It has become ridiculous. Seventy-five
per cent of the State and local revenue
in Mississippi has been coming from
taxes on property and only is per cent
Of the population has been paying 1t.
'For all Of the people to pay their
share Of taxes, as in sales tax. Is
wholesome. 1t is an antidote to social
ism and paternalism. It gets the little
fellow and it gets the smart big fel-
low who has reduced his property to
cash and put 1t into tax-exempt Sc
curities."
Reaches All Glasses.
do you favor retail sales tax to
was asked.
NO" he replied, privileges and pos
sessions should be taxed. but a sales
tax will produce all the revenue re-
quire -, although 1t should not. How
ever. it can and should serve to reduce
the tax load on property. 1t Is a tax on
consumption; it reaches all classes of
the population in proportion to their
scale Of living.
I'm this State we have 30,000,000
acres Of land, 100000 Of it under
cultivation. We have good weather,
long growing seasons, good rain con-
ditions, but We can not develop our
land resources with the settlers that
VIC Wdllt DO lOIlS do lllC CoA Oll Oiic&U 4oA1d
exists at per cent rate"
Has your sales tax reduced the ad
valorem rate?" was the next question.
mo. But so far it has prevented an
increase for State purposes. Our pres
ent ad valorem rate for State levy Is
8 mills per 81 900 of assessed valuation.
Had we not adopted sales tax the
State ad valorem rate would have been
increased to IL mills. The sales tax
has permitted a 81 per cent reduction
in total assessed valuation, however"
do you favor the proposed increase
to cents per 81 sales tax?"
II must soft pedal that until we can
finish a survey to determine what the
result of such an increase would be-" the
Governor went on. About 6 of our 81
counties have indorsed . proposal to
increase the State sales tax to 5 cents
2 cents for the State and cents to be
turned back to the counties.
Difficulties in Returning Money.
"There are lot of things I want to
know about the workability of scent
tax-3 cents to 60 back to the coun-
tie1before I agree to support 1t. In
the first place, there are difficulties In
returning that money. Fer instance,
we have 5,331 school districts, each with
the power to levy taxes. Each would
receive share of that returned money.
Couple these school districts with all
the other taxing bodies and you see the
problem Of returning money by the State