SOURCES OF ADDITIONAL REVENUE 317

the tax and the fact that corporate property is assessed for
the general property tax, there does not appear to be any
good reason why the rate for the franchise tax should be increased.
 The continuance of the tax at the present rate is
justifiable, primarily because of the fiscal adequacy of the
tax, the receipts from which are not subject to the same variations
 as are those on a tax measured by corporate income.
Although fiscal adequacy may be a good reason for the
continuance of the tax, at least for the present, it might be
well to consider combining the franchise tax and the corporation
 income tax into a tax on net income or a franchise
tax measured by net income! This change would have two
advantages. The administrative costs would be reduced,
since it would be necessary to administer only one tax, as
compared with two at present. A consolidation of the two
taxes, moreover, would no doubt mean a higher rate on
corporate net income, and it would therefore be possible to
tax national banks at the higher rate. So long as both taxes
are continued, it will not be possible to levy both an income
tax and a franchise tax on national banks unless the federal
statute is changed.

General Sales or Turnover Taxes
Although it is not a source of state revenue, this form of
taxation is used in Missouri. A state law permits local turnover
 taxes, and both St. Louis and Kansas City have taken
advantage of this source of local revenue.
In recent years West Virginia has made greater use of sales
or turnover taxes than any other state. For the fiscal year
ended 1927, 23.8%, of the revenue of that state was obtained
from turnover taxes, and in the following year the proportion
 was 20.4%. In 1929 Georgia levied a general sales tax,
but the yield has not quite come up to expectations. Sales
tax laws have also been enacted in Mississippi and Kentucky.
In both states an attempt is made to reach chain store
operators at higher rates. The Mississippi law endeavors to
accomplish this result by means of an additional tax, while
the rates provided in the Kentucky law are progressive.
LIf it were desired to insure a greater degree of fiscal adequacy than a tax on
corporation income or measured by income would possess, a minimum tax equal
to the present corporation franchise tax could be imposed.