New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-03-15
TAXATION.

/
shall the people do to meet and pay the
taxes for the payment Of interest and the
expenses of the State and city govern
| ments?
The Picoyune says it will not do to re-
pudiate, for that will make us Kissing,
by-word and reproach in the financial
world. That the debt must be paid 1t
assents, but how is the question.
| It must be done in one of two ways, or
both combined; by the imposition OF a
tax on personal or real property or on
the two combined. Which shall it be?
Political economists have not solved
the difficulty, though the discussion has
been increasing. 1t is especially I'M
nortant in relation to the local State and
| CITY taxation, that such course should
he adopted as would effect result which
shall not be unjust or oppressive. Since
the wear 1861 there has been an enormous
| increase of taxation on the part OF the
general and State governments, with,
perhaps, a few exceptions as to the latter.
| The United States, before 1861, never
raised more than S75, ZOO, 900 by taxation.
They have since raised more than $780,
OOO, 600 in a year. In 1861 the taxes OF
| the State of New York were $50. 200, 600,
| in 1870, $50, 300, OOO In that time the
population had increased over $4,000.
The State taxation is S11 so per head;
in Massachusetts, it is S14 IS; in Ohio
it is So y. The federal government, in
1870 raised SAL, 900, OOO and at the New
York rate of taxation the whole country
would have paid SS5O,OOo, 900, or S21 SO
per head-a far larger taxation than any
modern nation has ever borne IN
time of peace. In New York city the
tax for 1870 was at the rate of 81 IS
on every S10O.of assessed real and
personal property. In Brooklyn 81 %
on every 500, and in many cities OF
the Northern and Western States the
local rate is still higher The system in
New York and most, if not all, the East
ern, Middle and the majority of the
Western States is that Of taxing real and
personal property. 1t appears that in
Great Britain, France, Belgium, Prussia,
and Holland, there are no direct taxes on
personal property; and in all OF these
countries special care is taken that the
incidence of local taxation shall not in
crease the cost of production, especially
of manufacturing, or of the commercial
transactions involved in the movements
of the finished products of industry to a
market-not that this principle applies
directly to our State, for manufacturing
is not one of the favorite pursuits of this
people, but the argument has an applica-
ton to the taxation upon the capital en-
ployed in the prosecution OF the CONNER
cial and financial business Of this city. 1t
will be well, however. to bear this fact in
remembrance in connection with whatever
manufacturing interests there are here.
1t is said that the difference
in the return Of an investment growing
out of the difference merely III the fiscal
systems recognized in Great Britain and
the United States, would be of itself sutti-
Gent to afford the foreign capitalist a
dividend on his stock nearly OF quite
equal to the ordinary rate OF European
interest on the capital employed while
to the American investor the disadvan-
tage would be an expression at least two
penses and diminution Of profit, which
can be traced directly to a system OF taxa
ton and currency, which has enhanced
the price Of everything that enters into
the building of steamer or the produc-
ton of crop of wheat, cotton or sugar.
During the present year the Legislature
of Pennsylvania has incorporated Trans
atlantic steamship company, having its
American sisters in Philadelphia, in which
all the property of the company, stock and
bonds included is specifically exempted
from taxation. In Maine and Vermont,
manufacturing establishments have been
specially exempted from tax for term OF
years. 1t has been contended that
liberal system of taxation exempting per-
sonal property used in the Inauguration
and prosecution of manufactures has the
effect of attracting that kind of capital
to those States when such inducements
are offered as stated. Much has been
suggested and written in regard to the es-
Enlistment of manufactures here, and
as yet no great progress has been made in
that direction. The system of taxation
which prevails here is thought obnoxious
and oppressive, and al absolute pro-
hibition upon the introduction of capital
for the development of the resources of
the country. A large part of the local
taxation OF this city for its administra-
ton is placed upon the system Of licenses
and personal property, whereas more
should be put upon the real estate at its
highest rate Of valuation. The great OBJ
lection and trouble in relation to taxation
upon personal property is that its valua-
ton is unequal, and often amounts to
less than one-tenth of its real value,
while in other cases it is exacted rigor-
ously to its full amount. The practice
OF evading assessments on personal prop
erty is almost universal, and will be re-
| sorted to successfully in most cases, when