In August, 1916, an initiative petition was filed with the Secretary of State of California asking for the submission of an amendment to the Constitution providing that all public revenues after January 1, 1917, should be raised by a tax on land values. The petition bearing the names of more than eight per cent of the qualified electors of the state, the amendment was given a place on the ballot to be cast at the November election, on which it will appear as Proposition No. 5, as follows: LAND TAXATION. Initiative measure effective January 1, 1917, amending Article XIII of Constitution. Declares all public revenues shall be raised by taxation of land values, exclusive of improvements; forbids tax or charge for revenue on labor product, occupation, business or person; permits assessment of incomes and inheritances for old age pensions, mothers' endowments and workingmen's disemployment and disability insuranee. Declares land shall be equally assessed according to its value for use or occupancy, disregarding man's work thereon, such value determinable in municipalities and wherever else practicable by "Somers System" or other means of exact computation from central locations. On the announcement of this proposal for a radical change in the revenue policy of the state, the Committee on Taxation was brought together to consider it and report their findings to the Club. The following members participated in the Committee's work: Henry E. Monroe, Chairman; Albert Burch, Dudley Cates, George A. Clough, John P. Coghlan, H. D. Dewell, W. C. Fankhauser, F. B. Garver, John Ginty, F. V. Keesling, Charles H. Kendrick, H. A. Mason, L. E. W. Pioda, C. C. Plehn, J. H. Scott, Clyde L. Seavey, E. T. Thurston, E. A. Walcott, E. R. Zion, Milton T. U'Ren. The Committee's report against the amendment was prepared by Carl C. Plehn and submitted by Chairman Monroe at the Club Meeting of October 11, 1916. The arguments for the amendment were delivered by Milton T. U’Ren; those against it by Carl C. Plehn. Meeting of October 11, 1916 At the conclusion of the dinner and business meeting of October 11, 1916, President Hodghead called upon Henry E. Monroe, Chairman of the Committee on Taxation for a report of the Committee's work as follows: Remarks by President Hodghead THE PRESIDENT: The question for discussion this evening, as you have observed from the notice of the meeting, is the land tax amendment to the Constitution to be submitted at the November election. I believe the opponents of the measure designate it as the Single Tax Amendment. I do not know what its supporters call it. It is referred to on the ballot as Land Taxation. The question of taxation is not a new one by any means, in the Commonwealth Club. When the proposed amendment of 1908 to revise the tax system of the state was under discussion, it was debated here with great earnestness. That was the amendment which was defeated. Equal consideration was given to substantially the same amendment, known as Tax Amendment No. 1, which was carried in 1910, and which now constitutes the basis of the present tax system of the state, the chief feature of which is the separation of state and county taxes, and the imposition upon public service corporations of a percentage tax of their gross receipts for state purposes only. Now it is proposed to adopt an amendment which would supersede that system of taxation, and impose a tax upon land only. One of the speakers who is to address us tonight, Professor Plehn, was largely instrumental in securing the adoption of Tax Amendment No. 1. The effect of the adoption of this proposed amendment, called the Single Tax amendment, would be, as I say, to replace that, and impose taxes upon land alone. There is an intenseness of conviction on both sides, as you all know, regarding the merits of the Single Tax amendment. Each side feels and believes that the country will be ruined if the other side wins. I doubt that. I doubt whether you could ruin the country by any legislation, we are that tough; but it may be conceded that some amendments which have been proposed might be dangerous experiments. What the effect of this one would be is for the speakers and not for the chair to discuss. The Committee has been deliberating upon this amendment and brings its report here tonight. We will introduce the subject through the Chairman, Mr. Monroe, who will deliver the report of the Committee. |