The fiscal problem in Missouri

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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

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XI. Sources of additional revenue

Collection:: Economics Books

SOURCES OF ADDITIONAL REVENUE 305 on national banks, unless they are taxed on the value of the shares. If other intangibles are not taxed as property, the taxation of the stock of national banks at general property tax rates is no longer possible. The federal statute that provides for the taxation of national banks contains a provi- sion to the effect that a tax on shares cannot be at a greater rate than is assessed upon other moneyed capital in the hands of individual citizens coming into competition with the business of national banks! In a decision rendered in 1921 the Supreme Court of the United States held that moneyed capital meant any interest-bearing investment made by an individual.? A proviso enacted in 1923 seemed to liberalize the federal statute, but as the result of a decision handed down by the Supreme Court of the United States, the statute including the proviso is interpreted in such a way that in- terest-bearing investments in the hands of individuals are assumed to be in competition with national bank stock. Consequently, Missouri can continue the taxation of national bank stock as property only so long as interest-bearing invest- ments are taxable as property. It is doubtful that the taxation of national bank stock in Missouri could be continued if a national bank should go to the trouble of contesting the tax on the ground that many other intangibles are not taxed. In order to contest the tax, however, it would be necessary to produce evidence concern- ing intangibles that are not taxed, and the principal reason for not contesting the legality of the tax is no doubt found in the fact that the only information concerning intangibles that are not taxed which a bank might have would involve those owned by its clients. The authority previously quoted has stated: “The original method of taxing the shares as the personal property of the shareholders may be used by those states which are still so backward as to retain the system of taxing all intangibles at high rates as property.”® This statement is obviously ap- plicable to Missouri. The shares of state banks could not be 1R. S. U. S., Section 5219. 2 Merchants National Bank of Richmond v. City of Richmond, 256 U. 8. 635. 8 First National Bank v. Anderson, 269 U. 8, 341, 350. ! Lutz, H. L., Public Finance, p. 488. 91

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