The fiscal problem in Missouri

Bibliographic data

Monograph

Identifikator:: 1833271335

URN:: urn:nbn:de:zbw-retromon-230042

Document type:: Monograph

Title:: The fiscal problem in Missouri

Place of publication:: New York

Publisher:: National Industrial Conference Board, Inc.

Year of publication:: 1930

Scope:: xvi, 359 S.

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter X. Problems of tax burden

Collection:: Economics Books

278 THE FISCAL PROBLEM IN MISSOURI urban community having a true value of $10,000 and that B owns securities of the same value, which are taxable at general property tax rates and the income from which is taxable under the Missouri general income tax. Let us further assume that both A and B receive a net return of 69, on their investments before taxes, or $600 per annum, and that the state and local tax rate on property is $2.50 per $100 of assessed valuation. Whether the owner of the real estate will be overtaxed as compared with the owner of the securi- ties, assuming that both will be reached for the general property tax and the income tax, will depend primarily on the percentage of true value at which the two kinds of prop- erty are assessed for the general property tax. As has been seen, the average ratio for real estate is approximately 55%, while such intangibles as are reported are assessed at a much larger percentage of true value, in many cases at 100%. If the taxable securities are assessed at full value, $250 will be levied against them on account of the general property tax, reducing the net income to $350. On the other hand, if the real estate is assessed at $5,500, the general property tax will amount to $137.50, leaving a net income of $462.50 before the payment of the income tax. It is clear that under the assumed conditions the owner of the securities would be overtaxed as compared with the owner of the real estate. This example, while purely hypothetical, serves to show that, if intangibles are reached for the general property tax, the tax burden will be greater than that on urban real estate. It serves further to indicate the excessive burden of the general property tax on securities that yield a rate of return as high as 6%, which is the apparent reason why by far the larger part of intangible property is not reached for the general property tax. Although the intangibles that are reached for general property taxation in Missouri are no doubt overtaxed as compared with tangible property in general, it does not follow that intangibles as a group are in fact overtaxed as compared with real estate. On the contrary, if the larger part of intangible property, as appears to be the case, is reached only by the income tax, if at all, while taxable tangible forms of property are taxed at general property tax

Access restriction

Copyright

fullscreen: The fiscal problem in Missouri

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation