University of South Carolina Libraries
PAGE FOUR THE NEWBERRY SUN FRIDAY. MARCH 22. 1940 1218 College Street Newberry, S. C. O. F. ARMFIELD Eflitor and Publisher One Year .. . $1.00 Published Every Friday Entered as second-class matter December 6, 1937, at the post office at Newberry, South Carolina, under the Act of March 3. 1879. SPECTATOR’S REFLECTIONS Many progressive citizens are ad vocating the repeal of the tax on In tangibles. Senator Means of Charles ton and Chairman Calhoun Thomas are sponsoring bills to repeal. I will concede that we have the best law on Intangibles that I know of. No one need make the point that our law is less burdensome than that of Viiginia or other states; I concede that; but the very first purpose of a tax is to produce revenue. Of course there are taxes for regulation, such as our liquor taxes; but the tax on intangibles was imposed for the pur pose of raising money for the State That tax was $278,000 last year—less than a one-mill tax on property would produce. This tax was imposed in 1933, when our law-makers responded so mag nificently to the calls for relief by cutting the State apropriation fifty per cent. It was argued that real estate was overburdened with taxes and that there was a large field for revenue that had not been explored. Those of us who advocate the repeal of this statute are moved by the as surance of men of the highest charac ter and the widest experience that the tax on intangibles defeats the purpose of the General Assembly, since it keeps out many wealthy men whose taxes, if paid to this State, would produce more revenue than the present law brings in. To that ex tent, the matter of repeal is a ques tion of simple arithmetic. Can we produce more revenue by repealing the statute than by retaining it? That is the question. I submit that in that question hangs the whole matter. What are the intangibles? Moneys, credits, bank deposits, corporate stocks and bonds. The General Assembly has amend ed the original statute so that an in come from intangibles of less than $500 shall not be taxed separately. Recently in a public meeting fi gures were given to show how the tax operates: One man in Spartan burg paid $108 on a salary of $6,000 a year, but a lady in that county with an income of $3,000 from stocks had to pay $186. The lady paid $78 more than the man on one half the income. The tax works like this. A wi dow operating a farm with a net in come of one thousand dollars would pay no income tax, but a widow with an income of $1,000 from bonds, mortgages, or dividends would pay the intangibles tax on $500 of her income. Another case. If a widow operates a farm and realizes a net profit from the farm of two thousand dollars but loses two mules, two cows, and a tenant house she could escape the income tax; bat the other widow, with income from mortgages of two thousand dollars, would have to pav the intangibles tax on $1,500 even if the world came to an end, for the exemption of $500 is all that you can deduct, regardless of other losses. It was argued that the tax on in tangibles would relieve real estate of some taxes. If, however, the re moval of the tax would bring in more revenue, that argument fails. As a matter of fact, since the tax was le vied, other new taxes have been im posed and thev are producing about two million dollars. It is argued by some that the tax on intangibles is a double tax. We have been led up to so many moun tain peaks by experts who live in the clouds that we as typical business men, farmers and lawyers must try to reason this out together. I am en gaged in fanning and produce wheat. Sffme of my neighbors also sow wheat. We have no flour mill within twenty miles of us. Suppose twenty of us should form a little association a little private business company, to operate a flour mill. The only taxes the mill would pay would be the property tax to the county and school district. If that private mill should pay $2,000 to each one of us (I sub mit that’s fantastic) each one would add it to his income and set off all his losses from his combined income. But suppose that we, being afraid of punitive damage suits, should take out a charter from our Secretary of State—the same men, the same am- mount of money, the same business, and making the same profit—what would be the difference? Leaving out the fees for incorporating, and con sidering only operations, here are the taxes on that little community mill: 1. State Capital Stock Tax, 3 mills. State income tax, 4 1-2 per cent on all net profit. 3. County Property tax. 4. School district tax. 5. Federal Capital stock tax. 6. Federal income tax, 14 per cent Here are four taxes, heavy ones, too, that the private association would not have to pay, but which the little chartered company of Silver Street would pay. In the first case, if each of the 20 men received $2,000 profit, that indi cates that t e company had a net profit of 840,000. In the second case, before the company could pay anything to the partners, or stock holders, as we call them, it would pay to the State: 3 mills on its cap ital stock, 4 1-2 per cent of the net profits, a Federal Capital stock tax, and 14 percent for Federal profits tax. The partners (or stockholders) would receive what was left. Clearly it would not be $2000 as in the first case. Would you not say that the profit, or dividend, in the second case had already beer taxed? And taxed far more than in the case of any group operating without a char ter. • But we haven’t finished with the little group which asked our Secre tary of State for a charter. In the first case each man received $2,000 as a profit and could offset his losses; but in the little company of Silver Street or Fort Mill, each partner (now called a stockholder) is allow ed by the State an exemption from the intangibles of $500 and must pay 4 per cent on the rest of his profit, even though he lost ten thousand dollars in his other businesses! Now we, as average men of affairs, looking at this clearly, can say that the tax on intangibles is not a dou- i ble tax ? Perhaps it isn’t ; if you figure it out, it may amount to four taxes! There is an idea that the tax on intangibles draws revenue from rich people. The effort fails because some of our people have become citi zens of Florida in order to escape the tax, and those from the outside won’t come as citizens, because of the tax. As I wish this exposition to be one to convince practical men, not theor ists or philosophers, I am dealing in practical illustrations to prove my contentions. It has been pointed out that before the enactment of this statute in 1933 the millionaires did not overrun the State begging to be accepted as citizens. That is true. Nor, indeed, do I see them standing with hat in hand begging for citizen ship today; but there is something to be said by way of answering such observations. Since 1933 a great NOTICE OF ELECTION OF TRUS TEES FOR RIDGE SPRING SCHOOL SCHOOL DISTRICT NO. 40 A petition having been filed with the County Board of Education >by the patrons and resident taxpoayers of Ridge Spring (Old Town) School District No. 40, for the election of a trustee from Ridge Spring (Old Town) School District, pursuant to the terms of a recent act of the leg islature, it is ordered that an election of a trustee be held in Ridge Spring (Old Town) School District, at J. J. Dominick’s store, on the 30th day of March, 1940, from 8 o’clock in the forenoon, until 4 o’clock in the af ternoon, by managers hereafter to be appointed by the County Board of Education. The patrons and resident taxpayeis are entitled to vote. Each voter will cast a ballot on which is written or printed his choice of trus tee. The County Board of Education will declare the result, and will ap point the person as trustee who has received the majority of the votes at the election. The trustee must be elected from the qualified voters and taxpayers residing hi the School district. COUNTY BOARD OF EDU CATION NEWBERRY COUNTY. March 15-22 ‘OtnJS ©3(3s)SSs) 0 ® 00 Facts That Concern You No. 16 of a THANKS FOR A LOVELY EVENING... A new kind of beer retailing is bringing wholesome recreation to millions of Americans! America’s new kind of beer retailer wants to sell good beer, of course... but he is also keenly aware of his social responsibility to the community. He makes sure that his place is clean and inviting—and scrupu lously free of anti-social influences of any kind. The Brewing Industry wants all of beer’s retailers to be of this type. We do no/ want any other kind. And we are taking action to eliminate any abuses in beer retailing that may occur. We have instituted a new plan... now in effect in a few states and being ex tended as rapidly as possible... to protect your right to drink good beer in decent surroundings. May we tell you about h... in an interesting/ree booklet? Write: United Brewers Industrial Foundation, 19 East 40th Street, New York, N. Y. BEER.. .a beverage of moderation Rising of The Sap Stirs Pen of Hop Franklin They say when kids start writing on sidewalks and ball players start south then Spring is here. Another season soon gets under way and the boys in the street start predicting who will win and why so this bird goes on a limb once a year. In the American I-eague there are the Yankees and seven other teams, so it’s useless to try to pick any one change has come about. Prophets of a new era have risen in the land and every sort of theory has had its proponents, from California to New York. Taxes have been enormously increased, in some states arousing the citizens to mass demonstrations, as in New York, even New York. Men of wealth find us more conservative because we are almost pure Ameri can stock, and almost untainted with the socialistic impulse which seems so powerful today. Some of these men are becoming citizens of other states, notably Florida. I call to your attention that, quite apart from any possibility of winning new-comers, we have already among us at least two hundred multi-million aires owning fine estates here and living here during the winter. Par ticularly is this true of Aiken, Cam den and a coastal territory from Georgetown to Beaufort. Charles ton had three hundred thousand tour ists there last winter, some of whom stayed for weeks, but I am not think ing of them; rather I have in mind men who come here for the winter and live here in their own homes. These gentlemen have come herc and invested heavily for ease, comfort, cli mate and happiness. Many of them have expressed a wish to become cit izens of this state, What keeps them out? I need not multiply the cases; several may be given as typical: A man owning a splendid estate on which he has spent a half million dollars, had his accountant to compute what his taxes are to the State of New York, and what they would be in our State. The accountant told him that citizenship in South Caro lina would cost him forty thousand dollars a year more than his citizen ship in New York. This was because of onr tax on intangibles. ahead of the McCarthy Maulers. Boston Red Sox are certain second pitchers and will probably give the Yanks a race until August. Detroit there is a ball club that if they can get pitching with Greenberg and York bombarding fences they may upset the dope but it’s a long shot. Cleveland with Bob Feller and Johnny Allen both going good are sure of a first division place. Chicago once great in American League races, has too much of a team going nowhere in particular to finish any higher. Philadelphia—we still pull for Con nie Mack to win, but that won’t hap pen for years yet; he can move up a peg or so this year. Washington fast moving back to the early day when they were the first in war, first in peace, and last in the American League. St. Louis—Well, they can’t finish any lower. There aren’t but 8 teams in the League. National It would take Houdini and forty aides to stand pat on what may hap pen in the National Lea,gue, but I’ll take a shot on the outcome with fin gers crossed and my eyes shut. There is Cincinatti—they won last year with Chicago and St. Louis cut ting each others’ throats. But my dough if I had any would ride the Gas House Gang from St. Louis this season. Chicago they say the Cubs are giv en too much do as you please bossing but they still look good for second place. The Reds fit in third place simply because they are the third best team in the National League and I know they have Walters, Lombardi, McCormick and the rest. Brooklyn—well the Dodgers are moving from so-so to just a shade better, but other teams ain’t what they should be. Pittsburg and the Pirates to head the first division and fight like every thing to keep the Giants off their backs because Bill Terry hasn’t what he once had and they are getting worse each season. Boston — the Bean Eaters may (Continued on page 5) Notice to Farmers We will Deiint Cotton Seed on the following dates: Thursday, March 21st. Friday, March 22nd. Thursday, March 28th. Friday, March 29th. FARMERS OIL MILL IMPORTANT Notice! All those who owe back taxes for the year 1937 and prior to that date, are asked to call at my office at the court house at once. I have instruc tions from the Comptroller General with regard to these taxes and I must carry out his orders. 1938 Taxes f Back taxes for the year 1938 are also now in my hands, and I earnestly request those who owe these taxes to call and pay up. Levying on these taxes will start soon resulting in considerable ad ditional cost which will have to be added to your taxes. Those with 1937 taxes and any back of that year will please not ignore this notice. I do not wjsh to cause you any embarassment, but I cannot do otherwise than carry out the law and the final in structions I have from the Comptroller General. C. W. Sanders, COUNTY TAX COLLECTOR DATED MARCH 27, 1940 ft OtSTfcH Fine Selection of Fine Candies Join the Parade to our complete assortment of NUNALLY’S Candies. The boxes are at tractively and appropriately wrapped for the Easter season, and nothing could be better to remember the wife, mother, or sweetheart with than a box of this fine candy. L O M I N I C K ’ S Drug Store -3JHR3S ifcgfif OUR HOME LOOKS H&w Amu*! “We just finished giving our house the Athey Style Treatment! We never realized before just how dingy and old-fashioned looking a house could get in a few short years! We found several places where the paint had peeled off... the wood was exposed. Right then, we knew it was mighty poor economy to buy a so-called ‘cheap’ paint. Our house is now fashionably spic and span...and protected by_Athey’s C.M.A. Paint. “We were pleasantly surprised at the amount of surface this top quality paint covered...we didn't have to buy nearly so much as we’d planned on. Our colors are scientifically styled to be right for this year and the years to come. Now, our house is well protected...the property value is still high... and the place looks NEW again!” r YOU CAN'T HURT AN ATHEY SURFACE!' ^ 2 I Sr. ts* Manufactured by THE C. M. ATHEY PAINT COMPANY B’A ITIMORI • MARYLAND R. M. Lominack Hardware “The Complete Hardware Store”