Show Bruckart's Bruckart Washington Digest Government Ownership O of Land Creates Serious Taxing Problem Revenue Formerly Collected From Private Property Now Unavailable to Local Units Because of Extensive Federal Holdings By fly WILLIAM BRUCKART NU Service National Press Washington D. D C. C WASHINGTON Through some six sz weeks the house committee on military affairs has been holding hearings on a question that Is vital to the entire nation but yet It has hat attracted little attention outside of the areas directly concerned The problem Is I. one of taxes which six Ix southern states tates are not collecting That 1 ii b. b taxes which they used to collect from private property but butare butare butare are not available to those thoe states tates now because the federal government has bas taken over the property To be more specific these taxes once were a fine source of revenue for running the state tate and county and city governments and the schools and the policing and the building of highways and such like in the states tates of Alabama Tennessee Kentucky Ken tucky North Carolina Mississippi and Georgia But Dut along came the idealism of Sen George Norris of Nebraska who wanted the government govern ment to drive out all private ownership ownership owner owner- ship of electric power and along came TVA the Tennessee Valley authority that has grown like stomach atom ach ulcers within the economic body of the southland When it came it took over millions upon millions of ot dollars of property that had been taxed by the state tate and local gov gov- So So after some lome sev seven n or eight years the governments of those states and cities and counties want money with which to pay the cost of legitimate government The original TV TVA A laws provided that this gigantic owned government-owned octopus should contribute to those state tate governments governments certain certain sums in lieu of taxes but this was directed only In the case of ot Tennessee and Alabama The others were not men men- Those states were to receive receive receive re re- re- re 5 S per cent of the gross proceeds proceeds pro pro- of ot the sale ale of power by TV TVA A. A As stated the money was to be paid to the state tate governments alone Nothing was said ald about the counties or the cities or smaller towns that must have tax revenue upon which to live Operation of 01 TV TVA A Program Would Set Basic Baic Power Rate Rates But the omission of the counties in Alabama and Tennessee was only one phase of the trouble that was to come You see ee the TV TVA A boys and the dreams of the own government crowd wanted to expand the functions and the capacity and the scope cope of TV TVA A. A It was to br bl in the words of President Roosevelt a great yardstick by which the country country country coun coun- try was to be able to measure the cost of electric power From the TVA were to come basic rates by t which you and I were to know whether private electric companies were charging you and me and the rest of us too much for lighting our homes etc So So it was only natural that the TVA and its backers soon were promoting promoting promoting pro pro- something bigger and better betterin in the way of its operations Like some dread disease the pressure of TV TVA A on privately owned power companies became too heavy to bear and they were wallowed swallowed up In one gulp for instance the go gov v- v owned TV TVA A took over the vast properties of the Tennessee Electric Power company for I 1 understand that TVA got quite a bargain but the sale ale of the property to TVA was no bargain for forthe forthe forthe the taxpayers In the areas It served and moreover it was a terrible blow to the state tate and county and city governments in those regions They had been receiving vast sums each year ear as taxes on these properties prop prop- In one scratch of a pen the TVA almost put the local governments governments govern govern- ments on relief for aU all of the Ole millions mil mu- lions of taxable property became taxable non when the federal agency agen agen- cy the cy-the the TV TVA took TVA-took took title to the prop erty The government ownership crowd which is 11 driving hard now for government gov ownership of a lot of other things were as happy as a kid with a new toy train But like that same lime youngster they did not stop top to figure gure out just where their train was going Certainly the honeyed honeyed- words of the TV TVA A promoters in the southland did not disclose to the taxpayers of ot those areas what the deal was going to cost them ulti ulU Taxable Pro Property pert Reduced In Areas Served b by TV TVA A AIt It took several everal years of ot operation actual practical experience for those taxpayers taxpayer and the officials of ot C their state tale and county and city governments governments gov gov- to get hold of the horrible facts that are now being faced faced- the same facts that have brought scores score of officials and others other before before be be- fore the house committee on military mill mili tary affairs seeking relief The cold facts are that scores of those counties in the six Ix states mentioned have had their taxable property so 0 reduced In quantity by bythe bythe bythe the continued expansion of TVA that they are almost almot lg tax star The committee record is 11 replete with testimony showing tax rate Increases in almost every area served by TV TVA A and evidence of expectation of further tax increases It is a simple statement in most instances The witnesses governors governors gover gover- I nors county judges mayors spokesmen spokes men for tor groups of citizens told cItizens told al almost almost al al- most identical stories TVA had taken over so much taxable property property prop prop- erty that there was nothing left to tax for use we of those local govern govern- ments The governments had to have running expenses Thus the tax rates were increased Members of the committee on military mil mu- affairs are quite well aware of I the Job that confronts them In tryIng trying try try- Ing to write legislation that will solve the tax problem for the vanous various various vari van ous areas The states w want nt the money paid to them the counties want a share paid direct to them and the cities arc are squealing too But there Is much more to the problem than Just the TV TVA A area You see the government ownership gang has fought for and brought about construction of scores of other publicly owned dams and power projects On the West coast in the mountain inter area in Nebraska where Senator NorrIs lives in the eastern and southern sections sections ex exactly achy the same ame tax problem confronts confronts confronts con con- fronts those taxpayers or will come up to haunt them soon Whatever the committee does it is presenting present ing to the house of representatives a precedent-making precedent legislative pro pro- No one can ean envision its far far- reaching possibilities Legislation Will Provide Compensation for lor Tax Losses LOlle There will be a bill of some kind undoubtedly that will provide that TV TVA A pay more morn money to the regions regions re reo re- re gions glons where it operates They ought to have it U. But the thing that makes my blood boll boil is that the people of those areas have been lied to and propagandized so 0 thoroughly that they were not able to understand how a scheming group was selling them down the river That I is they did not see it U until too late Right Bight now they are In the position tion where they cannot run their own affairs They must come to congress and beg bel on bended knee for help which they ought to be beable beable beable able to give themselves from their own resources which are their own no longer They have surrendered again to the federal government which In the nature of things is very difficult for them to reach for expression of ot their needs and an explanation ex cx- of their own wishes There was included in the committee com corn a set of figures which I am going to list here The figures gures show that of the principal privately owned power and light companies paid In taxes in 1939 1039 This tax the record showed amounted to per cent of the total to tal revenue of ot those companies Here are the amounts by states tates that these companies paid Maine New Hampshire 2484 Vermont Massachusetts Rhode Island 1 1 Connecticut New NewYork York New Jersey 17 17 Pennsylvania Ohio Indiana Illinois Michigan Wisconsin Minnesota Iowa 1892 Missouri North Da Da- kota South Dakota Nebraska Kansas Delaware Maryland and District of Columbia Virginia Vir Vir- ginia West Virginia 4 4 North and South Carolina Georgia FlorIda Flor- Flor Ida Ida Kentucky Tennessee Alabama 3 Mississippi Arkansas Arkansas Ar Ar- kansas kansas Louisiana 3 3 Oklahoma Texas Tex Tex- as Montana Idaho and Utah Wyoming Wyom Wyom- ing Colorado New Mexico Arizona Nevada Washing ton Oregon California 2113 Study of these tax payments and they do not represent aU all of the privately owned companies that are paying taxes ought to show even the most stupid person that gradual expansion of government ownership means the slow but sure cure des destruction true lion tion of another source of funds fund for paying the cost of government And this thia slow destruction is 11 taking place at a time Urne when evelY government unit from the small maU village to the state tate and federal governments ar arin areto art are artIn in to debt up to their necks and the taxpayers are being bled white b br by current taxation methods |