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About Ashland American. (Ashland, Jackson County, Or.) 1927-1927 | View Entire Issue (April 15, 1927)
A SH LA N D AM ERICAN Full ¡Tçxt of Address on the Income Tax Over Radio KGW, Wednesday Even ing, April 13 by Hon. I. L. Patter son, Governor of Oregon It has been my intention, since the cloae of the T h irty -fo u rth legis lative assem bly? to review , to some extent, the activ ities of the session with referen ce to revenue meaus- ures; however, th e pressure of duties attendant upon establishing a new adm inistration has prevented me from carry in g out my plan until this late date. At this tim e I am particularly anxious to speak o f the two tax measures which a re on the ballot to be voted on a tt he special elec tion on Ju n e 28th— the income tax measure and he constitutional amend ment providing fo r the change in the tax base upon which the S tate Tax commission determ ines its levy each succeeding year, in com puting a six per cen t increase where a six per cent increase is necessary. In 1922 th e S ta te Tax commission was levying, d irectly against prop erty, taxes which produced revenue in the sum of $3,500,000.00. This was the g en eral property tax, ex clusive of m illage taxes which had been voted d irectly by the people and have been reg arded as not being within the six p er cen t lim itation provision of th e constittuion. You will note th a t th e constitution reads as follows: “ U nless specifically authorized by a m ajo rity o f tht\ legal voters v o ting upon the ques tion, n eith er th e sta te nor any county municipality, d istric t o r body to which the opw er to levy a tax shall have been d elegated, shall, in any year, so exercise th a t power as to raise a g re a te r am ount of revenue for purposes o th er th an the paym ent of bonded indebtedness or interest thereon, th an th e to tal am ount levied by it in the y e a r im m ediately preced ing for purposes o th er than the payment o f bonded indebtedness or interest th ereo n , plus six per centum th e r e o f ......................provided fu rth e r that the am o u n t of any increase in levy specifically authorized by the legal voters o f th estate, o r of a county, m unicipality, or other dis trict, shall be excluded in determ in ing the am o u n t of taxes which may be levied in any subsequent y ea r.” The legislative session of 1923, as you know, enacted an income tax measure, which was sustained by vote of th e people. It was enacted for the purpose of reducing the di rect tax ag ain st property. The rev enue from th e operation of this in come tax resu lted in a very much lower g eneral p roperty tax fo r the year 1924. In 1925, a fte r the repeal of the income tax, the state tax commission failed to restore the form er g en eral p roperty tax base, even though th e re was no tax against incomes to m ake up the deficiency. In fact, the g en eral property tax for 1925, in th e sum of $1,900,000.00, did not re p resen t, by some fifty thousand dollars, the constitutional increase of six per cent over the general p ro p erty tax during 1924, when revenues were available from the operation o f the income tax. As a re su lt o f this reduction in the tax base, th e state tax commis sion, in D ecem ber, 1926, found itself able to levy fo r the expenses of the year 1927, only $2,160,000.00, or $1,400,000.00 less than was levied in 1922. In the face of the cost of actual o p eratin g expenses of around $800,000.00 m ore than could be pro vided by th e tax levying body, you will agree th a t we can not reason ably expect th e activities of the state to function properly in the year 1927 on less, by $1,400,000.00 than was req u ired in the year 1922. If you heard o r read the special message to th e legislature on the subjects of tax atio n and finance, which I delivered ort F ebruary 2nd, you will rem em b er th a t I reviewed the financial condition of the state and arriv ed a t the conclusion th at necessary sta te activities required, including this deficiency in actual operating expenses, ab o u t $3,000,- 000.00 m ore than could, under the existing law, be provided fo r by levy made by th e s ta te tax commission. State revenues from sources other than direct taxes have been consid ered in arriv in g a t the deficit with which the state was confronted on January firs t of this year. H aving in mind th a t the state re quired $3,000,000.00 m ore than could be raised w ithout vote of the people I suggested to the legislature the income tax and the tith in g bill, hoping th a t th e income tax would produce ab o u t $2,000,000.00 and the tith in g bill som ething less than $1,000,000.00. The income tax was passed. The tith in g bill was defeated '>>' the legislature. A ppropriations were m ade ag g reg atin g approxi mately $4,000,000.00 in excess of available state revenue, of which ap propriations I vetoed bill providing f ° r $1,3000,000.00, leaving a deficit of over $2,000,000.00 fo r the current biennium. Section 44 of the income tax m easure provides th a t the revenues derived from the income tax law UP to and including $2.000,000.00 ™*y be used to m eet the larger P°rtion of this deficiency in state revenues. W hile the section m en tioned provides th a t the state tax commission m ay levy, fo r the year 1928. $2,000,300.00 In exceae of the amount levied for th# year 1927, it will not be m levied unl#M the In- come tax meaauee is poaaed by vote the people, and if U la a* paewd. I apprehend th at the income tax revenues will approxim ate the $2,- 000,000.00 additional tax levy neces sary to avoid a deficit for the bien nium. In order th at we may not again face such a deficiency in this state and have to call upon the people to authorize an increased levy, such as will be authorized if the income tax m easure is endorsed, a constitution al am endm ent raising the tax base to $3,500,000.00 a f te r 1928 has been prepared fo r your approval at the special election on Ju n e 28th. This am endem ent will serve to restore the tax base to approxim ately w hat i'„ was before it was cut down in 19 ¿3, when the previous income tax m ea sure was in effect. I wish to assure yon th at while I am a mem ber of the state tax commission, it will be my endeavor not to levy fo r more than is absolutely necessary to m eet the actual requirem ents of the state, and I promise you th a t if a levy of less than $3,500,000.00 will suffice for the actual needs of the state, the tax levy for such years will be reduced. By the way, this proposed consti tutional am endm ent will clear up the question of which state tax levies actually come within the six per cent lim itation of the constitution and which .do not. A reading of the constitutional am endem tn will dis close to you th at the millage taxes voted by the people are not within the six per cent lim itations and those levies made directly by the state tax commission will be within the six per cent lim itation. You will also note from reading the income tax bill, as well as the constitutional am endm net, th at the income tax, a fte r the first year of its operation will come within the six per cent lim itation and will be used to re duce the general property tax. As to the income tax — in the past the income tax m easures which have been placed on the ballot in Oregon have met opposition because they aroused an elem ent of antagonism of one class of property owner against another. Their opponents saw in them a desire to place the burden of taxation on one class of pro p erty owner only. I do not favor imposing upon the incomes of Oregon a tax g re ater than is actually required for a proper reduction of general prop erty taxes, I do not wish to be a party to the introduction of a tax m easure which will impose an un fa ir burden upon any business or upon any individual, and would op pose any income tax which would not not produce a lower general prop erty tax. The income tax m ust be regarded as a m easure fo r rem oving the present state deficit and fo r equalizing the present tax burden; not as a means fo r raising more money to spend. It m ust not be con sidered a m easure to perm it ex trav a gance in the adm inistration of the s ta te ’s business or the unw arranted advance of governm ental expendi tures. The income tax, as proposed by the m easure which you will find on the ballot will not impose an un ju st burden upon any person w ith in the state. It has for its purpose the taxing of incomes derived from Oregon business, and also the in comes from intangible property, held by Oregon residents. The rates are low and the exem ptions are low, so th at while they may reach men and women of small income, they do not place an unreasonable b u r den on either those of small incomes or those who enjoy larger incomes. Much is being said by those who oppose any income tax about the u n fair burden th at will fall on the man or woman of small income. This has no foundation in fact, as an exam ination of the m easure will show Under the proposed law, exemp tions are provided in the sum of $1,000.00 for unm arried persons and $2,000.00 for m arried persons or heads of families. An exem ption of $400.00 is allowed for each depend- rhe ra te of tax on net incomes one per centum on the first usands dollars; two per centum on second, third, fourth and fifth usands, and three per centum on omes in excess of five thousand lars. '"or example, a single man or wo rn who has an income of $1,000 • year will pay no tax. On an in- ne of $1,500.00 per year, the tax uld be one per centum of $500, $5.00. On an income o f $2,000 ■ year, the tax would be one per itum of $1,000 or $10.00. On an ome of $3,000.00 per year, the : would be figured as follows: t income, a fte r deducting exemp- ns, $2,000.00; tax on the first 000.00 at one per centum , $10.00; t on the second $1000.00 a t two ’ centum . $20.00— total tax $30. r a single person earning one rjdred dollars a month the maxi- im am ount of tax to be paid would $2.00. With deductions other in the exemption, the am ount d would usually be less. Married persons or heads of f am - s have an exemption of $2.000.00 is on an income of $2.000.00 no r will be paid. M arried persons th one child will pay " « * * * “" income o f I t . m f O l w ith tw o ildren no ti.x will be p » id on i n ui $2.fi0<U0: and three children no fax will ho p aid ] WANTED — IN CENTRAL POINT FOR R ENT— Kenyon ranch, 6 miles on an income of $.3,200.00 A m ar-' from Ashland, one-third crop. ried couple w ith tw o children and I w ant a man or woman in C en W rite owner, L. E. W inkler, 6646 an income of $3,000.00 per y e a r— tra l P oint to act as agent fo r T ren o r St., Oaklond, C alif. 523 perhaps b e tte r than the average fam i well established Life Insurance ly earning pow er thro u g h o u t the FOR REN T— Nicely furnished th ree Company. A splendid proposi state, would pay an income tax of room ap artm en t. E nquire a t Am tion to o ffer. Address— or.i\ two dollars per y e a r; this being erican office. 521 F. L. NUTTER one per centum of $200.00 or the 240 E. Main. A shland, Oregon I t FOR R ENT— Furnished 3 room apt. difference betw een th eir income in Shook A partm ents. of three thousand dollars and th eir M attresses renovated ar.d recovered. ---------------- + ---------------- exem ptions of $2,800.00. W ith o th er We save you h alf th e price of a deductions and exem ptions, this new m attress. New m attresses m ade “ H iram ,” exploded a fa rm e r’s wife am onut would, in practically all cases be less, and in no case higher. to y o u r order. H air and floss m attrek- from the ru ral d istrict, when h er hus Exem ptions provided by the law, es o u r specialty. We call and deliver. band stopped on a busy corner in the 32 N orth city to do some rubber-necking, other than for dependents are fa ir M edford M attress Co., and equitable. Deductions may be G rape St., M edford, Oregon, Phone "T he way you stare a t them city made from the gros sincome, in o r 4 8 tf hussies is som ething scandalous. Why, der to ascertain the taxable n et in 266-R. a body would think you’d never seen come, as follow s: B eau tifu l F lu ff Rugs made from (a) Expenses fo r doing business, any legs before.” worn o u t carpets. We call and de including a fa ir com pensation “ W all— M arie” — draw led H iram , liver. M edford R ug Co., Phone 610-M fo r personal services. " T h a t’s ju s t w hat I was beginning M edford, O regon. 4 8 tf (b) In terest on indebtedness. to think m yself.” (c) Taxes accrued or paid within the income year except in Rug cleaning by the latest sham heritance taxes or income pooing process, 24-hour service. C O C C C O C O ^C C C O C C C C O C C O SO taxes under this enactm ent. We call and deliver. M edford Rug (d-e) Losses sustained in trad e Co., Phone 510-M, M edford Ore 4 8 tf or business. (f) Loss by fire or other casualty FOR SALE TO TRADE not com pensated for by in surance. House w ith to ilet, bath and electric GOOD DRY FIR, AND PIN E lights, two lots, all kinds of fru it (g) Bad debts. WOOD. GARDEN PLOW ING and berries to trad e fo r small ranch (h) R easonable depreciation and outside o f city. 163 A uburn S treet, A SPECIA TLY obsolescence. Ashland. 5 04 Phone 400-J (i) C ontributions to religious, FOR RENT— HOUSES charitable, scientific or educa FRANK YARBROUGH 622 tional organizations, up to 15 per cent of the n et income FOR R E N T — Five room home n ear norm al. Good range and heater. (j) Dividends from stock in cor W rite P. O. Box 96 a t T alent fo r ap porations. po in tm en t to see pUrce. 503 xcccocccccccco Exem ptions perm itted u n d er the proposed law include: (a) Proceeds of life insurance policies. (b) Value o f property acquired by g ift o r bequest. (c) In te re st on Liberty bonds or o ther nationdl or federal ob ligations. (d) Salaries and wages of fed eral employes. (e ) Income from the operation of the w orkm en’s com pensa tion act. (f ) Income from health or acci dent insurance policies. A very sim ple blank will be pro vided, and no person need fe a r legal charges fo r filin gincome tax re turns. On large incom es the ra te of tax is not so heavy as to be burdensom e because the tax is against n et in- payers of large am ounts, as well as those of low er incomes, have a re flection in low er taxes on general property. I have alw ays held to th e th eo ry th a t a very large m ajority of the people in the state will pass in telli gently upon any governm ental m at ter, when all the facts are fairly un derstood by the public. I believe, also, th a t a very large m ajority of the people are not only willing, but anxious to bear th eir ju s t share of the burdens of governm ent. T here is no one who does no t receive di re ct b en e fit from governm ental fu n c tions and governm ental activities I believe th ere are few, if any who will not be proud to know th a t they are actually bearing a share of the cost of the governm ent under whose rotection they live and whose bene- its they enjoy. I earnesly urge your carefu l ex am ination of these two m easures for stablizing the finances of Oregon which will be subm itted fo r y o u r approval on June 28th, because I believe th a t if adequate and accu rate inform ation concerning th e ir ch ar 384 O&k St. At Ry. Crossing, Phone 20 ac te r and purpose is in th e hands of the people who are to pass on them , they will be sustained. * ---------- 4*---------- — -------- f t CLASSIFIED 1 1 Lumber Building M aterial Blox Coal GET OUR PR1CES P Ashland LumberCo. a 9 mi FOR SALE RABBITS R abbits! W e can use m eat rabbits, frie r size, all you have. Baby Chin chilla E a ste r rabbits, $3.00 p er pair, bred utility does, Flem ish. N. Z., Chinchilla, $3 and $3.50 each, SUN-GOLD RABBITRY T alent, Oregon GOATS FOR SALE Two good, young milk goats, fresh ; heavy milkers. O. H. COLE, W alker Ave., Ashland. FOR SALE OR TRADE— Good a u to mobile. W hat have you. Call 225 B stree t. 512 FOR SALE— Fresh milk go ats cheap. Six m iles east of highway. Sam uel Johnson, R oute 1, Box 162. 512 F o r sale— Six room plastered house in R. R. Add. A bout $600 down bal. $26 a month, includes in tere st about o re acre. Also 7-r. 1 ty story bungalovr, well-built, scenic lo c a tio n ; good lo t; fru it, price $2300; $300 or m ore down. $25 a m onth with 6 per cen t int. See Yockey A Co. 5 0 tf ON CRATER Lake highw ay, in city lim its, and on Rogue R iver, the home o f the Steelhead. Two acres, fine black soil, five room house, five- place, bath, electricity. Spring, city and well w ater. P len ty fr u it and shade trees. Also has 30x30 concrete tank, 6 - f t deep, fed from spring, an ideal place to keep tro u t o r use as swimming tank. $2250 buys this place if sold soon. A ddress P. O. Bov 622, Gold Hill, Or._____________ 4Stf WANTED—To buy fresh cows and springers. Charles Broill, 441 Hell- man at. Phone I07R. 4Tf with A Happier, More Practical Easter If you would make this Easter an especially happy, practical one, you will choose as gifts, a selec tion o f these ELECTRICAL UTENSILS.- In the collection there is a gift for each. Jordan Electric Co. Ashland, Oregon 180 East Main Street