Show Banker Urges State Income Tax I As Solution of Revenue Problem HOUSTON By Tex Tex By The Associated ASSOCIated Associated Press The The state stale Income tax was suggested as the key to the problem of 01 providing the additional revenue that modern modem administration demands by Thornton Cooke chair chair- chairman chairman man of ot the committee on state stata tax Lax taxation atlon American Bankers' Bankers association tion here today Cooke who ho is president of at the Columbia National Dank Bank Kansas City spoke before the thc national bank bink division dl of ot the association He warned the delegates against an attack in congress on the present restrictions on taxing t. national bank shares State tax commissioners seeking additional sources of ot revenue he declared might be expected e to ask for a 11 lightening of ot the federal re restriction re- re restriction restriction which requires that na- na national na na- national national bank shares be not taxed higher than other moneyed capital Congress s should not allow their profits to ba bo minimized and their capital as they surely would be In many tinny states if it It be became be- be became became came possible for the legislatures legislature to 10 tax banks bank by themselves he declared The argument of 01 local convenience must give way to the argument of ot national welfare we must not weaken our national banks For a n solution of ot the problem In Ina ina a a. large way oa can we find anything better than the state income tax Cooke said For the banks that would be the ideal Ide l way out of ot the conflict between een state and federal laws The state Income tax seems to work fairly well ell in most of tr-e tr tt e estates states that have adopted it IL In a i few tew states statts business men are re reluctant re- re reluctant to consider Its establish establish- establishment establishment ment for or fear tear that Industries would then locate local elsewhere No state wants to handicap itself in business competition But if the advantages evident in the Income tax from many points of ot view should lead many states to adopt it it there would be no question between of 0 advantage or disadvantage by reason of at their tax system The chief argument for the in income In- In Income income come tax is Is of ot course Its equality Another Is Its flexibility More readily than any other tax it can be adjusted to the varying require require- requirements requirements requirements ments of or the public service The old general property tax system Cooke said has too long incitement to been an incitement to evasion a a. penalty for tor success and a a. brake on progress |