The Courier-Journal from Louisville, Kentucky • Page 27

THE PASSING SHOW THE COURIERJOURNAL, LOUISVILLE, SUNDAY MORNING, JULY 2, 1939. STATE SECTION 3 consin imposes numerous sur "high pension group maintain a State monopoly over the sale of taxes, including one for the specific purpose of financing old-age liquor. Iiolh Incomes In Five Slates pensions, which in the last fiscal year produced $2,490,384 for this one undertaking. That is just a little more than Kentucky has spent for aid-for-the-aged in fiscal Examination of the two lists of States show that five Iowa, Michigan, Ohio, Utah and Wash ington have both sales taxes and hard liquor monopolies. And there are other dpulica-tions.

Utah, for example, collects more from a drastic schedule of lated to all the other aspects of an extremely difficult problera. In general, it is true that: Pensions are most liberal where taxes are heaviest. States which are paying large pensions have at this moment extremely lucrative sources of revenue which Kentucky does not possess. And the favored source cX such extra revenue is the sales tax, which Kentucky has renounced. These facts are adduced from the record, and nowhere else.

They are in line with the observation, repeated several times in this series, that Kentucky cannot at this time increase pension payments to its aged, or add any considerable sum to its common school per capita fund, without: 1 Raising existing rates of taxation. 2 Levying entirely new taxes. 3 Going heavily into debt. (Tomorrow: The genesis of the Colorado pension plan, and some of its effects.) property taxation for State pur poses than it derives from either year just ciosea. Wisconsin Loses Tax Refugees Results of these heavy levies were reflected vividly in a report released by the Wisconsin Tax Commission on May 26.

This report snowed than no fewer than 159 individual taxpayers all of them with annual incomes exceeding $25,000 and several in the "millionaire" class had "refugeed" from Wisconsin into climates, that were more salubrious to their pocketbooks. Annual tax loss was placed at about $300,000. Such specific citations could go on and on, but perhaps enough its sales tax or liquor monopoly, Oregon collects through income taxes a richer yield than is pro vided even by its State liquor stores. But what about the eleven States which have neither sales has been said to make plain the point, which is that higher pen- sions are related directly to the capacity of a State to pay, and to the aggregate tax burden imposed by a given commonwealth upon taxes nor liquor monopolies? Three Have Heavy Income Taxes Seven of them Kansas, Maine, Maryland, Minnesota, Nebraska, Nevada and New Jersey still depend upon tha general, advalorem property tax as 'the principal source of State revenue. Three Massachusetts, New York and Wisconsin impose very heavy taxes upon net income of corporations and of individuals, these levies being the the great mass of its citizenry.

IS'o Pension Increases Without Revenue It does not seem to be enough DR. C. L. SEUBOLD CHIROPRACTOR Chiropractic Restore Health and Builds I Health Investigate! Phone JA 6537 for Appointment and Consultation 357 Starks Bldf. bulwark of their fiscal structures.

merely to point out that Kentucky is paying a pitiful $8.66 per month to its old folks, while Arizona is paying $26.14 on the aver The tiny. city-State. Rhode Is land, has only a handful of pen sioners 6.265 in February and age, California $32.47, Colorado $29.07, and so on down the list. I These isolated facts have no the overall yield of all its taxes amounts to only $12,500,000 yearly particular significance unless re-1 about as much as the City of Louisville collects from all its revenue sources. In Rhode Island, taxes upon inheritances and bank shares bear about equally the bur den of producing general-purpose revenue.

It may be interesting to revert for a moment to the three States which derive their major revenues 'Tl I )' IS ALL AWI from income taxation. So far as Massachusetts and New York are concerned, this phenomenon probably explains itself. Both are rich, prosperous, highly industrialized; both have within their boundaries "If you want to dance, Colonel, you'll have to pay!" IT COSTS the tax-paying "home offices" of many national institutions. But Wisconsin is something else Sales Tax Dogs the Old Age Pension Trail Funds for the aged are the most abundant in Stales where taxes are the heaviest, investigator reports. Those States have revenues which Kentucky does not By BRYAN COLLIER Hi II Iff 0 1 i pressure demand for old-age again and thereby nangs a tale.

Wisconsin Income Tax "Catch-All" Wisconsin is about the size of Kentucky so far as population is concerned. They rank, respectively, fourteenth and sixteenth among the forty-eight States. But Wisconsin derived from Income taxation in the fiscal year ended June 30, a year ago, the amazing sum of $24,955,739, or nearly as much as the combined yield during the same period of all four of the major taxes which support Kentucky's general fund. Income taxation in Wisconsin has been, apparently, the "catchall'' for any and all new functions undertaken by State governments during recent years, not for nothing is it the home State of Senator "Young Bob" La Follette, who is always trying to broaden the national income tax base. In addition to quite heavy "normal" taxes on net incomes of corporations and individuals, Wis US- into their own treasuries the profits from the sale of liquor, whether at retail or wholesale; profits which, in Kentucky, are pocketed by a host of private licensees.

These "liquor monopoly-high pension" States are Idaho, Iowa, Maine, Michigan, Montana, New Hampshire, Ohio, Oregon, Pennsylvania, Utah and Washington. Another Stale, Connecticut, manages to pay large pensions by imposing very heavy license and excise taxes upon liquor traffic, these levies constituting the most prolific single source of General Fund revenue. It may, again, be just a coincidence, but: Only seven States outside the "high pension" group have found it necessary to levy sales taxes. Only five States outside the Fifteenth of a series. IF LARGER pensions come, can the sales lax be far behind? Kentuckians might well ponder the above question, on the basis of what has happened within recent years in the thirty-two States which have given to the old folks during 1939 average pen-ion checks in excess of $15 monthly.

This State Is one of sixteen twelve of which are in the South wherein the average monthly payment to persons over 65 years of age has been considerably below $15. But every breeze that sweeps the Bluegrass is laden these summer nights with eloquent promises from the gentlemen (especially the Democratic gentlemen) who ere seeking the Governorship, that they will increase Kentucky pensions by a very considerable margin, and place them on a parity with some of our wealthier neighbors. These gentlemen, however, have sistance, and revenues therefrom are specifically earmarked for pensions. But the sales tax isn't the only extra-rich source of revenue which the "high pension" States have been forced to devise. Eleven of them including five of the sales-tax States have taken unto themselves an absolute monopoly of the sale of alcoholic beverages other than light wines and beer.

These States, in a word, take failed without exception to explain where they will raise the money for these larger payments. In view of this rather important omission, it may be fruitful to examine in some detail the case histories of the thirty-two States which are now paying in excess of $15 every month, whilst Kentucky oldsters have to skimp along with a meager $8 or $9. Kentucky, you will recall, used to have a sales tax. Somehow, the folks didn't seem to like it. It may be nothing more than a coincidence, but fifteen of these extra-generous thirty-two Commonwealths, do have sales taxes at this very moment.

Another of them. Idaho, had a sales tax once, blasting it off the books back in 1936. The fifteen "sales tax-high pen nia, Colorado, Illinois, Indiana, Iowa, Michigan, Missouri, North Dakota, Ohio, Oklahoma, South Dakota, Utah, Washington and Wyoming. Indiana, incidentally, Is included in the above list because its lucrative "gross income" tax is classed by the Tax Policy League, from whose statistical reports I have compiled these lists, as partaking of the general nature of a "sales" levy. Com paratively Recent Device No State in the Union had a sales tax, as the term is understood today, prior to the deep depression years of the early 1930s.

In at least some of these fifteen States as, for instance, Colorado, Oklahoma and Missouri the sales tax is the direct result of a high- Traveling With Brown sion States are Arizona. Califor OVER T2 SQ. FT. SHELF AREA New, 1939 Model. Finished in white porcelain inside.

Standard equipment includes: Defrosting Tray and Ice-O-Bar. Available accessories: Hydrovoir and Automatic Electric Floodlight. THE SUTCLIFFE COMPANY 225-227 S. Fourth Incorporated Louisville, Ky. John Y.

treats smokers after speech is over By JOE HART town, heralds the news that Mr. Brown is going to speak and then is set up at the speaking place. At the Clark County meeting in Winchester, several workmen, doing some sort of repair work on the Court House, continued with their work of loading earth onto a W.P.A. truck. Clouds of dust drifted over the audience, assembled in front, but no one suggested the wrorkers stop.

Touring With Johnson By J. HOWARD HENDERSON audiences by Ruby Laffoon when he was making his race for Governor, but not in the uncensored COMPARATIVELY long jumps over gravel roads, frequently in blinding rainstorms, marked the week of campaigning in the East Kentucky coal fields by John Young Brown in his fight for the Democratic nomination for Governor. He has been showing signs of hoarseness for several days, but does not let that interfere with the length of his speeches, which run on an average slightly less than an hour. In each instance he has insisted that electric fans be turned off in the meeting places, mostly courtrooms. In Hazard Thursday night, an audience made up largely of miners, proceeded to light cigarettes and settle themselves down for the speech.

Mr. Brown inter- "TVESPITE the widespread dis 1 9 cussion of the C.I.O. for language used by the former Gov no ernor. Mr. AJrown is telling his So a railroad is new enemy of the people? two years, there still are voters who did not know what Keen Johnson was denouncing ganization Act was pased.

It contained this provision (Section 4618-156 Kentucky Statutes): Notwithstanding any existing statutory provision, any member of a board or commission shall be eligible to hold any appointive office or become a candidate for any elective office im at Shelbyville last week. One in I I me audience ran across an acquaintance, and promptly fell bran and Lawrence, Tompkinsville, Lilburn Phelps, Russell audiences to "take all the money and all the jobs you can get and then vote as you please." His campaign teenmque includes a moderate amount of handshaking, but nothing like that employed by Gov. A. B. Chandler.

Mr. Brown frequently calls upon some person on the platform to verify a statement concerning local happenings, a device developed by Governor Chandler. Springs. to discussing Johnson's speech. "What did you think of it? was asked.

BADMINTON mediately upon his retirement GOING AWAY OVER Mr. Phelps Is something or a State figure, having served as Assistant Attorney General under Charles I. Dawson, 1919 to 1923, "Well, it was a mighty good CAMPING I ill A speech," the other answered. "You know, thirty years ago it looked like the L. N.

was trying to Assistant United States District Attorney and Clerk of the United States District Court. run the State, now it looks like the C. O. is trying to do the CROQUET BASEBALL same thing." In the same district M. Rey Yarberry.

former chief of detec THE from said board or commission; provided, however, that no member may become a candidate while serving on any board or commission That repeal by implication, as the lawyers would say, probably will suffice to save Mr. Cam-mack's rights to appear on the ballot It was drafted by Mr. Cammack while he was Secretary of the Chandler Reorganization Commission in 1936 so J. C. W.

Beckham, chairman of the commission, would not be barred from running that year for the Senate. It is a coincidence that the two men who have benefited by it since it was drafted have been Mr. Beckham and Mr. Cam- tives in under a Re publican administration, is seek On Monday when Mr. Johnson reached Columbia he learned that G.

R. Reed, scheduled to make Mr. Brown usually follows a sound truck an hour after it has been set up. Blaring recorded music (of the hillbilly type this week), then serves as an amplifier for any overflow crowds that may be present. Immediately after the speaking, the truck moves on to the next appointment, circles the FISHING 1 A Hi- ing the Republican nomination for Commonwealth's Attorney.

He lives at Columbia now. He is opposed by Charles Fair, who served two terms in the HUNTING TENNIS General Assembly from Casey, and recently completed a term WINGS OP COOLNESS FOR TIRED FEET THAT HURT WITH HEAT. DUST ON FAMOUS MFXICAN HEAT POWDEH. as County Attorney in Casey. An Frederick A.

Wallis He helped treat other candidate for the office is Robert Lloyd, Jamestown, who is County Attorney in Kussell No matter what sport County. rupted his talk to remark, "If those people who are smoking will quit, I'll buy them all Coca-Colas after the speaking." Jollification of R. E. Lee Murphy's Lexington friends with the belief that he "is home free" in you plan to He add his campaign manager, Frederic A. Wallis, went to a near BUY WHAT YOU WANT ON OUR BUDGET PLAN the Appellate Judge's race in that by drug store soda fountain after the speaking to make good the district may be short-lived.

A section of the Public Service Commission Act, passed in 1934, Judge J. Carter He has a family campaign pledge. enjoy, you'll findwhatyou prohibits any member of the commission from running for any public office within two years the introductory speech there, had broken his upper plate, and was awaiting their repair. This For a day or two after the stand collapsed at the opening of Lieut. Gov.

Keen Johnson's campaign. after he quits the commission. James Cammack, appointed to the Appellate Court last fall with several persons injured, Mr, Brown referred to the incident as directly from the Public Service "the breaking down of the plat need at SUTCLIFFE'S Commission, is a candidate for form" of his opponent. In each nomination for the remainder of instance he expressed regret that anyone was hurt. the late William Rogers Clay's term.

Two years after the Public Good for a roar of laughter in every audience he has tried it on is the question, "Has this water been tested?" Mr. Brown is using an appeal that was stressed before mountain DRUNKENNESS Is a DISEASE This FREE Booklet Explains the Facts HERE is a treatise written on the disease of inebriety and its cure, written especially for the Keeley Institute. It it based on 60 years' experience, embracing the treatment of more than 400.000 men and women from all walks of life. It tells you "why" the medical profession recognizes DRUNKENNESSasadis-ease; what famous medical authorities say about it and HOW" drunkenness can be cured. The booklet is free, and mailed in a plain envelope Write for your copy.

fs'OW! Keeley treatments are given only i 'II x-T i Pay a little down, balance in small weekly or monthly payments. James W. Cammack, Jr. Saved by his law mack, though Mr. Cammack had no idea then he would be running for the Court of Appeals in 1939.

Opening bids on a $500,000 hospital unit at Herrington Lake marks the first sizable step in building that institution. Elaborate plaster-of-paris casts, showing a fine array of buildings at the Herrington Lake site, have graced the State reception-room, off Governor Chandler's office, for two and a half years. Sightseers have viewed this model, and that of the Oldham prison, and from the guide's story gotten an idea that the Herrington Lake Hospital already was a substantial brick and stone accomplishment. Actually, until this week, one small building, costing about $50,000, is all that was accomplished late that afternoon, in time for the night performance. We ran across some hot local politics down in Southern Kentucky, where in the Republican Twenty-ninth Judicial District they are trying again to take the measure of Circuit Judge J.

C. Carter, Tompkinsville. Judge Carter has been Circuit Judge there since the memory of most middle-aged voters runneth not to the contrary. Five times he has served six-year terms, and row he faces a divided field of four other candidates. Judge Carter is the head of a powerful political family.

He is Judge; his son, Ab. is Sheriff of Monroe; his daughter, Mrs. Pearl Pace, is Sheriff of adjoining Cumberland County, and his nephew, Paul, is County Attorney in Monroe. Those who are attempting to wrest the judgeship from the xenerable jurist include perennial candidate, Silas Sullivan, Liberty; Oliver Popplewell, Liberty; He- LOLLLSVLLLeS Sporting Goods House Phone WAbash 5642 DR. BARNETT DENTIST S.

4th Room 4 420 at 1 he Keeley institute. They are not home treatments. "Thtrt an no Ktrky Intliimn it A Slate of Ktntutkj" Addrtu THE SUTCLIFFE COMPANY I Incorporated Above and 10-Cent Store Daily 8:30 a.m. to 5:30 p.m. Sunday till noon.

Tuesday, Thursday and Saturday evening till 8 p.m. 225-227 S. Fourth Lilburn Phelps Running for judge Louisville. Ky. mm imwwwwwMOMowwwwMwwyl Service Commission Act was passed, in 1936, the Stats Reor has been built since the appropriation was made early in 1936..