The watchman and southron. (Sumter, S.C.) 1881-1930, May 14, 1921, Image 8
TAX CORNER |
j
The only chance for a fair and per
maheat solution of the tax muddle in
wt^ch South Carolina is now flounder
>v is honest publicity and unselfish
/ taking;. The material both for the
; honest publicity and unselfish think
ing is already available. It consists of
3 ^Report of the Joint Special Com
mittee on .Revenue and Taxation sub
E?itted to the regular ession of the
^Qeneral Assembly of 1921. The report
Iwas-prepared by a joint special com
ifiitte? made up of J. H. Marion, chair
rn?n;" Niels Christensen; Joseph A.
Berry*; L..D. Lide; .1. B. Atkinson;
- Buckingham.
?i^Phe. report is admirable beyond
preise,?comprehensive, clean cut,
c?Bstructrve, and convincing.
v "Jf:every person of voting age in
South.Carolina could be persuaded to
study it from cover to cover, our tax
troubles would be over.
^-The report contains 17S pages, in
cluding the Appendix. Mr. J. H. Ma
rled was requested by the editor to
summarize in a column its quintes
sence. He very kindly consented. His
aiSvicie follows:
The First Step.
-* While willing to admit that the Re
port Of the Joint Special Committee
On Revenue and Taxation, submitted
to the last General Assembly, is pro
. iix"' and loose-jointed, I am not quite
"billing to concede that it can be ade
quately summarized in a column arti
ci*fbr the Tax Corner.
? The. report as a whole is an at
tempt to develop a more or less logical
argument in support of the Commit
tee'* main conclusion?that the first
essential to sound tax reform in South
Carolina is the abolition of the "gen
*fal property tax" system prescribed
- to?the constitution. The law of our
present. system is the rigid constitu
. tibnal requirement that all property
of ^very- character shall be assessed
factual value and taxed at a "uni
&>rrmand equal rate." The facts are?
universal .undervaluation, consequent
inequality of burden as between indi
viduals and taxing districts, exorbi
tantly high tax rates, consequent
escape from taxation of a large pro
portion of taxable property, and in
idEquate revenues. We are assessing
&fcd collecting taxes outside the law,
operating the most important depart
ment -of government as an outlaw
-business. -
<rV$Sfcat. is -the remedy? Is it -to be
found -ih the much vaunted prescrip
Jto??~"drastjk: reduction of appropria
fiotis5*?- No?-for reasons which are
'?ftjgfF^e*! in *, our report and which
f?t*?4aeen trenchantly stated by you in
the- Corner. Does the remedy lie
5^'th^he.tter. administration which you
?s^^w-ben you say, "We need a
e> muf?rni valuation of property
^So^th-Carolina? No?for reasons
jo io-the heart of the proolem
^.Which^we have tried to set forth
our'report: Higher valuation
'i^^l^tter.administra^.on all along
f&*Sij^simpry '.mean a nearer ap
Pcach in practice to what o\tr censti
ttfrtnft^.anii statutory law now re
assessmen of all property
*f>ite-'act?al or true value for taxation
it a? uniform rate.- If that is the solu
B6?^ecould and should foUow Nonh
Carolina's example and provide by
te^Jsl?noh - the special machinery re
quired-to put all taxable property on
the books at 1#0 cents on the dollar
r. within 12. months' time. It is not the
iblution, for the reason, that after
putting all property on the rolls at 100
cents on the dollar we would still have
tir ?d -valorem tax rate higher than
the property now escaping taxation
(consisting largely of so-called intan
gible property) can or will stand. The
owner-Of intangibles doesn't have to
rtahd a tax rate that takes an undue
proportion of the income from his
Ofth and securities. He can conceal
his cash or invest it otherwise and
efcewhere, or shift his securities, or
caU his loans, and thereby disrupt the
industries of the commonwealth. If,
I therefore, the classes of property now
escaping taxation a ad which- our law
, positively requires shall be taxed at
the same rate as all other property
lirould not be put upon the tax books
%) imd.teept there at any rate we could
hope for a result of a full and true
valuation, surely there is something
wrong with the theory of our law.
Aside from the reason of the thing,
that theory is unsound because it is
f' impracticable. It is impracticable be
cause the Industrial health andjievel
epmer.t of a State demand and force
recognition in practical tax adminis
tration of the different economic char
acteristics of different classes or prop
erty. Witness the outlaw classifica
tion which now permits the escape of
at least $300,G00,000,000 of taxable in
tangible property in this State.
. .But the total loss of revenue from
that class of property is not the only
or.the worst evil entailed . When
you make fish of one and fowl of an
other under a law which forbids any
distinctJcn, the entire administration
of the general property tax is de
moralized and the- net result is the
chaos and burdensome inequality we
have.today. "~he higher uniform val
uation of property, with no increase
in. public expenditure, would give a
nominally lower tax rate. But it would
lower no man's taxes. If expenditures
were increased, whatever the rate of
mill levy, abvious the higher valua
tion would jpt prevent an increase of
taxes actually paid by property own->
er?Sri exact proportion to the increase;
in expenditures. Higher valuation will
uelther palliate nor cure the disease.
'If no real relief is to be had through
befter administration, is it to be found!
izj providing additional revenue from
other modes of taxation, such as the1
income, tax, the business license tax. \
the Inheritance tax, etc.? That in-|
QUiry is pursued and various forms)
Of taxation examined and discussed)
in our report. The commission is
reached that the general property tax!
requirements and limitations of the!
constitution would seriously interfere
With the successful administration of
other available methods of taxation,
except in the case af the inheritance
tax. -Certainly, handicapped as we are!
by present constitutional restrictions.
W* c*auot -reasonably expect to pro- j
HERE'S THE
NEWS
Comprising About 150 Silk Dresses, The Very Last Word in
Styles. The Quality Like You Expect From THIS Store,
Dresses of Canton Crepe, Taffeta, Crepe Back Satins,
Crepe de Chines, Etc., Will Be Grouped in 2 Lots.
Our Entire Stock of Silk Dresses, Together With Pur
hases Just Made.
CJ
LOT
$35*00, $32.50, $30.00, $27.50, $25.00
SILK DRESSES
Your Choice For
LOT 2
$65.00, $62.50, $60.00, $55.00,
$5G.00, $45.00, $40.00
SILK DRESSES
Your Choice For
SALE
LASTS
WEEK
Dresses By "Peggy Paige" "Co Ed" "Essanelle" and All Other High Class Lines. Mostly one of a Kind.
ACT QUICKLY!
NO APPROVALS!
NO EXCHANGES! NOCHARGES!
Ali Hat? Then Get a Hat to Match Dress?Select from Our Entire Stock?"Gage", "Fiske" Etc
"/ and PAY JUST 1-2 PRICES. THEY WILL MOVE, SO BE PROMPT
SCHWARTZ BROTHER
Price
All Hats
Vi
Price
vide sufficient revenues from other
sources ever to reduce the ad valorem
levy to a point that wil admit of the
practical administration of the '?gen
eral property tax" within the law.
Let us first take down the black flag!
As the first step toward sane reform
[and permanent relief we should
I change the law*by amending the con
j stitution.
* ' J. H. Marion.
Xorth Carolina's Solution.
Whenever a difficulty is to be over
come or problem solved, ir is well to
see what others have done under simi
lar circumstances. Xorth Carolina has
recently revised her whole tax system,
and in so doing faced most of the ob
stacles which now eon front South
Carolina.
By request of the University Weekly
News, M,r. A. H. Seats, formerly of
South Carolina, now of Raleigh. X. C.
has sketched its essentials of the
Xorth Carolina plan.
A couple of years ago Xorth Caro
lina decided that the property in that
State should go on the tax books at
its true value. Like the rest of the
Southern States valuable farm lands
were returned at about one-tenth their
value and the same applied to personal
property. There was in operation in
Xorth Carolina about the same tax
machinery as there is in South Caro
lina. Property was returned to the
county auditor, passd on by the coun
ty assessors and finally fixed by the
board of equalization. There was a
gentlemen's agreement that no prop
erty should be returned at marc than
fifty per cent, o* its value, despite the
law and constitution, uut the avetage
j was far below that figure.
in Xorth Carolina the law was
changed in many respects, th - idea
being to remove the tax fixing board
as far from direct voting influence as
possible. It has been partially suc
cessful, but the values placed on farm
lands has raised an awful howl and
the last General Assembly backed wa
ter a little, providing for a reduction
to be made by the various county
boards where it was though that val
ues were too high und were in Hue
with the inflated price of everything
else eighteen months ago.
Xorth Carloina's idea is an excellent
one, however, something like the heau
[ line William Banks placed over an
[ article on perpetual motion. "A Good
Thingif it' Works." Briefly the tax
ing of all property in the State is in
the hands of a board consisting of a
Commissioner of Revenue, the chair
man of the Corporation Commission
and the Attorney General. There is
no State levy on real estate. The
expenses of the State and all of tin;
educational, charitable and penal in
stitutions under State control are met
by an income tax. an inheritance tax
a license tax on corpoi*ations and a j
franchise tax. These taxes bring in I
enough income to meet all expenses'
of the State government. This board.!
however, passes on al Ireal and per-!
sonal property returns as made in the !
various towns, cities and counties and
as these units levy real and personal
taxes one can readily see why a howl !
went up when the assessment was!
boosted.
The law provides that in the month
of May there shall be appointed if: :
each county a number of tax listers
wh?? shall list all real and personal
property. The tax listers shall in each
case consider each piece of property j
its location, condition of the soil,
etc.. and the oath signed by the tax- I
payer certainly goes into details. Thej
returns then go before a county board'
and finally reach the State board for
review. There is provision for ap- '?
peal should a taxpayer think tin- as
sessment too high and provision U,v\
punishment for evading or violating
any section of the tax law. The lea-1
ture of the entire law, how< ver. is thai '?
section which gives tin- State board''
power over the various local boards
and provides for general supervision
of all acts by the local boa ids. This 1
section, if properly carried out and
the returns cheeked closely, nullifies
any influence corporations or individ
uals might bring on local boards in an
endeavor to-evade or lighten an assess
ment. This is the drawback in the
proper enforcement of the tax laws in
South Carolina at present. Those re
sponsible for the present law in North
Carolina hoid that if the idea is car
ried out honestly and fearlessly taxes
will be lower in every county, town
and city, that the income from taxes
will be greater , and that there will be
no inequalities." And that's true.
A H. Seats.
How Long?
In two casual conversations be
tween a low countryman .Did two up
country men tliis week the latter in
troduced the subject ot South Caro
lina Tax assessments. They are
stirred up because of their inequali
ties.
One told of a piece of property
that lie knew of in Iiis city that has
been returned lor taxation for a num
ber of years at less than $10,000. Re
cently a part has been sold for $i?0.
000, and the balance is held to l><
worth $100.o0n. The man said.
"What encouragement is that to a
man who wants to pay a fair share
of the taxes?"'
The other said that a ?35.0a0 loan
was recently applied for o;: :i piece
of city property, which is held i<> be
worth ?100,000. When tax books
were referred to it was found that
the assessment was for >2,000. 1;
seems that some years ago the iargc
property of which this pio< e was then
a part, began to be cut up and sold.
Each time a parcel was sold the price,
it sold for was deducted from the
assessment on tin- tax book:-. Thai
explanation is no justification, ol
course, but it illustrates a custom
that is said to be somewhat go no raj
all over the state.
Until the archaic, unjust, unscien
tific system of taxation that we tol
erate is rooted up and cast out of our
constitution and statute law we will
be crippled in all our private busi
ness and in our government.
North Carolina, with just such a
problem as ours, has solved a large
part of it. She is now starting on a
period of development tha! makes us
gasp. We arc to be left behind in the
development of our resources., both
private and public, if we do nor cure
this fundamental difficulty.
How long are we to sit simply in
the face 01 this condition?
Every citizen should del armine
whether he personally wan:-- a
change. If he does, he should tell
the representatives in the legislature
that he does. The legislature has be
fore it a clear statement of a road to
follow that will lead us out. It i ??
the report of its own committee
written by Senator Marion.?Niels
Christensen, in The Beaufort <r.i
zette.
SENATE PASSES
TARIFF BILL
Eleven Democrats Vole With
Republicans on Final Roll
Call
Washington, May 11.?The senate
late today passed tic emergency tar
iff and anti-dumping bill, retaining
all amendments recommended by the
finance committee, but rejecting
those individually proposed. The
vote was >',:[ to 2S.
Seven Democratic senators, Rrous
sard. Louisiana; .loins. New Mexico;
Kendl Ick, Wyoming: Myers. Mon
tana: Pittman. Nevada: Ransdelb
Louisiana and Sliv'ppard. Texas, voted
with tie* Republicans mi passing tic
bill. Another Democrat, Asburs!.
Arizona. who was absent was an
nounced as a supporter. Only one
Republican. Senator Moses of New
Hampshire, voted against the bill.
As; passed by the senate the meas
ure differs radically from the form
? I
in which it was passed by the house
['early in the extra Session and now
[goes to conference. Only the tariff '
features of the bill were kept intact,
the anti-dumping arid currency re
j valuation sections being entirely re
Iwritten and the provision added for
! continuation of the war time re
1st riet ions on imported dyestuffs. Ac- j
tion by the senate came at the end
of five hours of driving attack by
[Democratic ieaders. Tin- latter, how- i
ever, were not alone in their attempts
! t<? amend the measure for sew:-:;!
j Republicans made efforts to broaden i
? its scope only to see their amend-',
j .re-nts meet the same fate as- those ?
j offered from the minority side of the
I.Chamber. .Ail were swept aside by
[-practically the same vote,
j Late in the day Democrats concen
trated on the committee addition i"
ith?? bill providing for continued fed
jeral control of dye importations.;
Senators charged frequently that the:
amendment which was submitted to
the committee by Senator Knox, Re
IpubJiean. Pennsylvania, would cro-j
,'ate a. monopolistic control of the dye !
i industry and turn over tin- consumers :
i to * tho wishes and will of on.- man."
j .\ roll call left it as a part of the j
j bill by the vote ol '11 to 25.
! Senator King. Democrat, Utah, was
? not content, however, and made j
'another effort to strike out the dye I
! provision just prior to the vote on:
j passage. That failed als...
j The I'tah senator, after passage of I
the measure, announced he would
offer q resolution in the senate soon
to investigate the monopoly which
he said existed and had now been
permanently intrenched by the sen
ate action.
There were successive attempts by
some of the Democrats who favored
he measure t?. increase rates on par
ticular commodities. Senator Ash
urst. Democrat. Arizona, made a -par
ticularly hard fight to raise the rate
on long staple cotton from 7 cents
as lixed in the bill to 2o cents. His
amendment was rejected 74 to 7.
Senator Jones. Democrat, New
Mexico, sought to have the bill in
clude hides within the scope of its
protection and drew forth the:
largest vote favoring the change j
that was recorded on any amendment, j
It was defeated, however, -)C> to 49;
The i>i!) as passed b..r the senate
provides the following commodity
rat? s of duty:
Wheat. :;." cents per bush'-!: wheat j
fiour ;.;. ] semolina. 20 per cent, ad ;
valorem: Rax seed. 20 cents per bush-j
el; ecru or maize; 13 eer^cs per bush-j
el: beans. 2 cents per pound; pea
nuts. :; cents per pound; potatoes, 2">
'its ner bushel; onions, 30 cents per
bushel: rice, cleaned. 2 cents per
pound with graduated lower rates
for uncleaned or unmilled rice; pea
nut oil, 2*> e-aits per gallon: cotton
seed, cm oanut and soya bean oils.
20 cents per gallon; cattle 20 per
<? nt. ad valorem; sheep, one year oid I
or over, $2 per head, Under one year,
I $1 per head; long ' staple cotton
j (i inches) 7 cents per pound;
jcoton manufactures 7 cents a pound;
wrapper and filler tobacco, mixed/
j when the product of two or more
[countries, unstemnrev, $2.35 per
; pound, stemmed, $3 p?- pound; other
kinds ot filler tobacc*>, unstemnied,
: cents per pound; stemmed, 50
i nts per pound.
I The following were selected to rep
j resent the senate in conference with
j 1 he house: Chairman Penrose of the
i finance committee and Senators Mc
Cumber? Xorth Dakota, and? Smoot,
! I'tab.. Republicans, and Simmons,
! Xorth Carolina, and Williams, Mis
sissippi. Democrats! It was deemed.
unlikely that attempts to iron out
i the differences* betwetvn-^the senate
and house would begin before Fri- ?
; day.
A Detroit girl recen "y shot another -
girl. Xow all the ou|-r Detroit wo
men are wondering may she did it,
since there are so man* men who have
not as yet been shot, er shot at.? /
Johnstown Democrat.
And now when flurope hears a "3
courier -crying "on he king's busi- g
ness", it knows he is pleaded for a 5
pawn shop.?Hartford Times. J
Find Another Leg ? Headline. \
The boarding missus's explorations M
are rewarded.?Buffalo Express. . "jjj
Princti Albert ir
sold in toppy red
bags, tidy red tins,
hands' me pound
end hifcf pound tin
humid'm and in the
pound crystal glass
humidor with
sponge moistener
top.
A pipers a pal packed with P. A.!
Seven days out of every week you'll get real smoke
joy and real smoke contentment?if you'll get close-up
to a jimmy pipe! Buy one and know that for yourself!
Packed with cool, delightful, fragrant Prince Albert, a
pipe's the greatest treat, the happiest and most appe
tizing smokeslant you ever had handed out!
You can chum it with a pipe?and you will?once
you know that Prince Albert is free from bite and
parch! (Cut cut by our exclusive patented process!)
Why?every puff of P. A. makes you want two more;
every puff hits the bullseye harder and truer than the
last! You can't resist such delight! ?
A.nd, you'll get the smokesurprise of your life when
you roll up a cigarette with Prince Albert! Such entic
ing Savor you never d;d know! And, P. A. stays put be
cause it's crimp cut?and it's a cinch to roll! You try it!
I'M'Wik
Ccpyi-h-ht 1921
by R. J. Reynolds
Tobacco Co.
the national joy smoke