Show I r j I I 14 U or tate k kI Chan ang t Hong j Agitated j Revision on Outlined After Study j y A. A Associations Association's 5 oc Head H TRe T Reclassification Re on of Im- Im Imposts p posts v st Suggested S i in Report Re- Re e. e J port Submitted J. J 1 41 s 7 f. Utah's struggle toward tos ird a n. more Q il t rn of tn t geth cr rith rc mc as a s t to wl What t t bring bo t tI I better r J conditions nd n nr are t- t a a a- report o OZ ot the Uie Ut Utah Edu- Edu citi association c nilon Sat by Pre Pr President de t Arch M Thur- Thur hl mari ri to to tho Utah tax revision Ilon com com- corn com rho Tho handles tho the situation in dlf different sections The first t two tv zo ro dev devoted ed t td a a presentation In lille of ot the work accomplished rby by t tax commissions appointed In fn 1912 and 1922 The messages of to four our r governors to V i ors ors' tel relative U o to taxation and an outline of ot defects 1 in fn Utah's tax system stem comprise the next o two while the final Inal s section Uon J 1 Is devoted to BUg BUg- I gest d remedies Dissatisfaction cUon regarding taxes ted In Utah for man many years sears andIn and and- In 1912 a tax commission was to Workout Work out out means menns o of oI e evolving hig a better belter elt r tax system th the re report rePort re e- e port port- says Among Amon the thc suggestions suggestion o offered b by tho the t the tile expiration of ot its Us vy ork vork were that thai money money b bo classified fr front nr ni oth- oth c or cr kinds of at t property and taxed I apart tt Unit that an Income t tax tx x be 16 even even- adopted and th that t the tho rate o ot 1 taxation upon mines be Increased as d INCREASE EXEMPTION POWER PO The commission also regarded f favor v r of or legislative e l resolutions ns designed to to provide provide- for tor increased of the to make ex- ex ah an amendment permit tins ting tho class h pC or property sin ent of the board of fec equall- equall and ancl permitting th the legisla- legisla ture tur a a. a free tree hand baud to d deal al with ever e changing cba economic While some some nome of the recommendations i were e ad adopted Pled the principal on ones ones s. s dealing classification op ot 01 property and additional power f for r the he legislature were jO not consummated In hI his his- me message to the In fn 1913 1 Governor Gore William Spi Spry ac- ac to tD report the the- defeat of ot toe the above mentioned prin- prin t elps pal taxation matters to selfish inter In in- in ter He wild saId ld In fn part Through a ft c c of or perversion pCT misrepresentation self elt Interest u upon on the the- part of ot Individuals Individuals' als and cor cor- orate Interests eSte who wh saw in the they adoption on o of or ih tho tho Crit a a. L. L certaInty certainty U y o ld b be f b broughto brought brough gh to bear benr an annual burde burden of of- the tax tax- atlon n. n of ot the th the th proposals r lost lost- t. t t SEE REFORM NE NEED HEED It later to report Indicates Indi T n ye ars' ars rs' rs the cates lir iT answer to public l clamor r for far equalization on tax bu burdens burden d n another r tax commission n was ju lip pointed d' d dand and after er c m Utah's hS system estem with ith other r Bt t arIve atthe at t the tho B conclusion that tha there ther was was' n a tIne t. t Ine great heed t r Utah In Iri th ther cOUr f Investigation s g tI n t tle e. e found that t n tar reich reich- lug ing could be made In tax tar uy stein unleSs unless- provisions pr were were made tor f or- or niT Income Income- tax and a IL classified property tax Tho Tie com commission c m mission recommended nd d a a tion Income Income- and arid classified property tt tax and a gasoline tax to be used for tor road rond maintenance In making Its Its' ts recommendations I the commission grouped Its tax plans plans' as follows Ws Per Personal onal Income tax corporation in Inc income me tax classified cl property tax limitation cr of tn tax levies g gasoline t tax and a no revised tc bank tax The last U three whIch r e ls which did note notie- constitutional amendments i adopted by the legislature While the state constitution already provided for tor an income t tax It ft was as U Ud I d deemed emed inadvisable until a a. property classification n could b bo e effected t d b be be- income tax taxI I under th constitutional provisions provision l amount Virtually Jn In confiscation nfl cl tion so so high hIgi wn wa waa i the the- rate rite or ot rt taxa u. u tion GOVERNORS Ask REVISION In n the the- section devoted es of the tate four gov Is out but that each haV hai l made a Ii lri- lri Mr a tr I v withered red from the report ls 13 t that constitutional al U JC ito to- together ge gether her wit concerted and org opposition to toward tard rd alteration ri of the same e- e have hn prevented the d de development nt of ot ap an an equitable n le tax plan In Utah The report tI- tI i defects Jn In Utah Ulah ns A A. A. A Tho inherent In th Ib theoretical a LI or of the t tax x itself p. p Those from It lit 1 trAt V n n r T To fh a two wo two A. A A A. Theor tl aI l defect defects defects- 1 en u It nad m lt far Tate tt r of r ty o. 0 f t tha t thal per er J J ability top y I 2 U It I inor nor income from froin property n 3 3 It u pr property rr 7 to tob be tenon ii U i J It dot doe Sot not bee the tha fad fact fad that taxes tas em on ot MB ld bd e at ut not os a l land i I B. B n l f ct il 1 I It allo l' l Inequality between tax Ux- lox C U 2 It It now HoTra between bit of f proper properly 5 J I It n t allows allow ln In In Individual aM U HT i i I 4 C It- It Allows noS between mount amounts of ot pr J 1 I. t. t ci ce th t ta x 1 ta J. j Ive L Lag AU s T not pay PA proportionately n as n much 1 aa II In In- addition to these It II dots does not mert all all' the the- pt f i n l tar tax nime 1 FIscal adeQuacy adeQuacy- fI rot not sufficient without w over ver burdening ln t tho thoe oie e already ov overtaxed t 5 I. I Economy C oiny coPtI cost tO too teo much mucho o tD o en- en n. n for J. e. e S. S neAle 4 4 tt It lt l Inot not elastic ltv lt Ui not not simple U aa I j aa as m 6 dOes tD be d ty ea el lI sot not allow tilo various form of taxation by co conUI- conUI U hi bound td th the y tern tern- doe 6 not flOt allow sufficient t rd power ur on on- sues auto mente menu levies and d collections fc SUGGESTED REM REMEDIES EDIES Suggested remedies comprise the tho largest large t portion of thc report Amo Among 1 1 I Included cd In fJ inthe the arc the the- theron ron following Cen Con Cen tr Used d c control ot ot of- tax matt maters r by bythe the tho tito rd of of betler better bet- bet ter ler administration taxes anti and Ln t tax 1 ct b by the classified I tax arid and tax tu of dOt t these thee e division is 18 Issup sup aup ported by Jenit lengthy 1 arguments by various ya- ya 1 rious lious g nt rot Uie th report IK J. as follow t Briefly Briefly- this I paper papel lIpe attempt to show ow that tho ant o ot s A K growing common common- commonwealth wealth b bo I reduced thAt while In lt 1 I I. n ItIs It Is 11 Dot not rean really a. a problem In taxation but buta a a problem of cC expenditure that lure tures lire re Inc and andl will continue to 10 todo todo do so o be because uM of Increased population and Increased state tato II X z Tho o tu taX x I lon of 1191 In th the recommendations 1 I. That th the stats state board of f equalization should have haye creater pow pow fir r. r S. S the That That t the term of ft ind of ors be Increased elf so 0 ato ASato W obtain mar mor mort men S. S That a pr property perty tax tar hould be adopt so o ay 3 to o make meke It possible pos po sib sible Ibre t to tax property Including ing br money man credits etc ete I 4 t. That mines should hould pay pro ro portion of th the C coet o l t o oft go Vol r minI min I I I. I That nt the True irue V of 1 v should phoud 1 e obtained by u. u Using sins nl various arlous meth R i lr iu Lu obtain such auch valuation C 6 That there should not riot be a separation sepa ration ot of of state tate and sac local revenue be be- be caas It U tends tend to divorce the le leof of of the t those of the cities and counties i which should Instead bo united an and l cemented 7 l n the proe roc dur 0 of J J. J and collecting nl and em- em cleney rCY ou obtained lne M u tar a That t tr there theVe r u d b beon eQ l givIng 1 more mars power to the i tat at legislature It It yf Th The tI tax commission e of- of U 1912 r. r Commends C- C p. p p r onas- onas l tax x n. n cor cor or n J jar ar r. r K a a en cn property tax tar far its U ne well swell well a a. a th the limitation of lax of tar the lbs c u tax tur and a revised bank balk tax x tt tax pelt pl ch tit lu alue of ct banks bank i pon the c capacity surplus sur and undivided In Ip Iliac placa pf If value alue The Thelast lest last three thru of or recommendations th I adopted Th also aro pointed pInte out the tha and f ef f property r and and of of an Income tux tai oar to get cd at Intangibles an nd i the aI of et persona who are r not net ny y t tax x In brief It showed owed the ta we neUI of at the nea ProP property proper tax x and the need of t tax tu reform I L IU III t lIuI vo- vo Ito Ito-i- 1 briefly tz urn surn tar situation In Utah Uta and 1114 p point out the the- b p pertinent need of tax taJ reform Bach sch h of the governors Indicts IndIct the general property tax as being Inadequate unjust unfair and Impracticable Impracticable I and recommends revisions of ot tho the thoi i constitution M ie a as u. u tu obtain v a. more mora just equitable and nd t. system cistern em of taxa taxa- lion tion In Addition they point out outS the requisites requisite of a sound tax tax stem and show how where our our system falls talla faIls b to toC comply L these requisites 1 Besides thy rec recommend reP I more mora responsibility to the tate board of ot equalization and anC u sj- sj v vIV 1 IV v. Defects of the general property property- tai tai- they fall flU Into two tn main ln classes A Those e n r In n Jh tux tax 8 system rl t i tel tern tem l it or th tote tic defects B. B TholO froni fron It its It operation er or a administrative ft 1 li I. liThe The defects defect are a. a It adopts a false lIe test of taxable ability U L e e. e eo that thU property prope pe per se Ie bents Benl the ability to pay b. b It Ignores Income from t property pro rt c. c It assumes pro property rt to to o. o be be homo honto- 1 i d d. d eol itt dO not Include Include the that U It Ua JJ a possible to shift Ift taxes on commodities bU but not on land n d 3 5 Ti The administrative def defect det-cl ar are a. a It allow 2 Inequality bel between e taxing district i t b. b bIt It allo allows III Inequality n. n types o property properly c. c Cit It n allo allows inequality ty b between t een vIdual 1 v d d It i allow llos llo s Inequality between amount of property Properly f. f P. P the tax Is Is- Is I rt lve Largo Large amounts doi do 1101 not pay pay- as aa much as' as small lima I In addition to thes tt Il lt do does does' not meet I sit all the requisites of a good tax tax namely I tile fiscal I adequacy economy equity eta elas- simplicity diversity and ity liy In TO short abort U It I s 1 unsuitable to the present t day a condition bt aulle auie It fallows allo much muli property to and thus thull pun pun- honell and rewards dishonesty And nd ma makes makes' u lor dodgers dodger In place placa of of- taxpayer k 1 1 l. l In order order- to cori cor rId net the evils evils' and and the defects of the general lax a number of remedies remedies reme reme- dies eMen b en 1 by various tu stu- d nt and nd the subject 1 To i rite more more central control b by th th stats sla tat rd b of oC r Il a. In order to tre ret get b better H r lIon both on on the the part of authors asses and county commissioner r b b. To get Irei more mon and n nd cern cern- nm rt lie colle collection ton And o. o of ot taxes tx j 1 v In to tb limit and and l f a- a ft It 7 Supplement the general property tax by p special recil ld taxation such uch II as lie consumption con cnn lum ton thee taxes or er or nonessential taxes tiuS I tn- tn eluding faxe tobacco soft ott drinks drInk ice Ic cream cosmetics hr tonic tc tc and 4 oft boxing contests wrestlIng mt J e picture pic plc- ture Jat tat s ar l' l gradually tase to up UTI ell In itt order der mot meet the the groWIng needs of oc government 1 0 linin 10 to In the tax f 5 Dy tax reform a. a l by y the Uon of a a a. classified pro property erly tax hu eo so n as AI to make It possible to levy a a- a lower tower rate rato u upon On intangibles lh tangible property In I to reach reach this kind of property and nd thu thus put pul put both bath more property and taxpayers Its Uie tax tax rolls roil b b. b 1 By Ily ta tax This tax l terse terse- by practically all aU students of or taxation by tax fez state elate u if C f- f atlan A BS well as b by governments lIo h The National Tax fax association committees committee report on a a. amodel model tax program m Includes three fundamental funds funda mental principles A personal tax Which shall shaH be levied consistently upon upon tho the principle le o 0 of taxing everyone at athis his hi of domicile for ther ll support P Jort of the x under which he ii lives tAX tux property levied objectively wheres u h r property has hall Its situs and situs-and and without without- regard r rs to owner own own- er condition conditions I Tor or such states a desire a business tax which shall hall be bit u n an alt nr non ness s on within the jurisdiction of the levin authority such inch A taxi a In Tn ln short s. modem r program r mm emphasize em- em m m- the Imp importance of a pr personal Income on the tho ground that Jt it Is' Is label label- bel belter t tar ter r fitted any ny other any other tax tx to carry out nut the principle that every person hay hav- In r In-r tAxable shall make mako a reasonable reasonable reason lon able ble contribution contribution- td the support of at f the tho government under under- which he lives That It Is as fair fai In principle me any tax can be made made- Slid and that tho t under If It can ean be fn Sn the ht American states a ns isI Ij ig shown hon by Professor ear sor Truman C. C Binsham of of- the University sity alty of Arka Arkansas Arkansas' In In- his lit article In th tho Economic Review of Jun Junes Juna i 11 ir In which h he h. shows shown t that at In the thc Courte fourteen Hates Hates' at tate lof liv which the income tax tar Is h used wed that It has ha not on only 1 Inc Increased the venue re-venue of at thes these states but hM hn hoa gradually Increased the percentage t b f C taxes which have hav been paid from Incomes In In- comes coma nd thus T. T u r th the p percentage CI tr from m property In in brief that It hs ha that Income tax Ux II Is a IL aau surce cess 5 |