The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-05-20
The Taxation OF Real and Personal
Property.

The reform OF taxation may proceed ir
two directions. Either the principle al
present prevailing of taxing directly al
property, real aid personal, may be retain
ed, and reform be applied to the methods o
enforcing the principle, or the principle itseli
may be abandoned, and new system sub
stituted.
If the first course be pursued, there is
room for improvement in the details of ad-
,ministration in most of the States. 10 the
first place the valuation of real estate may
be made much more correct. This is best TO
be effected by the creation of some certain
authority, either single commissioner oi
taxation, as in Massachusetts, or board OF
commissioners as permanent and removed
from partisan influences as far as possible,
and armed with authority to enforce revalu-
ations in proper cases, and to prosecute
assessors derelict in their duties. Experience
has shown that there is no practical difficulty
in assessing real property at its proper value,
which for taxation should be its "fair value"
on sale on the usual terms. In Providence,
R. l., registry OF all sales, witt: the true
consideration, is made obligatory, and this
registry affects the market value OF property
there. In Philadelphia, the appointment OF
commission, such as is above recommend
ed, resulted in trebling the valuation OF real
estate in one year.
In respect to personal property, the cir
cumstances are entirely different from those
which obtain in the case of real property.
Much of the former is invisible aud incorpo-
real, easy of transfer and concealment, not
admitting OF comparison with any common
standard. The assessment lists are, from
obvious reasons, constantly changing. Pub
lie opinion again does not sanction the en-
forcement Of the tax against small owners
of this species of property. The uniform
experience of mankind goes to show that
oaths ere comparatively worthless instru-
nents of forcing disclosures of the personal
property held bysindviduals so much so
that much of the commercial immortality OF
the. country may fairly be attributed to the
habit engendered by the general disregard oil
oaths in matters Of taxation. These are
then the inherent difficulties OF the subject.
The only practical suggestions to be made,
il this system of taxing all personal prop
erty directly must be retained, and none are
to escape their share Of the burden, are to
make the law more stringent, severe and
mandatory, to invest assessors with greater,
almost arbitrary powers to inquire, fine, or
otherwise punish, Tin ancient Rome they
might put TO the torture;) and central au
thority must be appointed to enforce from
the assessors the performance of their duties.
In Massachusetts land Connecticut, as in
South Carolina, the taxpayer is obliged to do
what is called in the dialect OF those States,
s'listing his property. e., to make sworn
return OF the amount OF it. This provision
has not been universally adopted in the laws
OF other States.
But il the principle Of taxing all personal
property is to he carried out, difficulties be-
side those already mentioned will be met at
every step. What, in the first place, is 10
be done as regards the debts due by the Lax
payers? In Massachusetts he is not allowed
to set it off against his property returned,
and in Connecticut only to q limited extent.
In tie former State merchant is taxed on
the average of rs stock Of goods during
the preceding year. Say that he has CAPT.
tai OF slOO." "aO, aud goods bought on credit
to the ano, y of S50O,000 if we assume
the rate to be 2.27 he would he paying at
the rate OF over eleven per centum on his
capital No trade could live un'ler such u
burden. But ii the right TO Offset indebted
ness is allowed, so wide door TO fraud is
opened that immense parts OF the taxable
capital of the State evades taxation alto
gether. As, for instance, person with
capital OF 500, 900 buys United States bonds
to that amount, then borrows like amount
on the pledge Of the bonds. He returns
S1OO, 900 OF capital and an offset Of like
amount of debt and escapes taxes alto
gether. Again, large sums evade taxation
through the exemption granted to Savings
Banks. In 1869, bad business year, the
increase Of their deposits, in New York, was
0,000 600, and in Massachusetts S24 OO0,-
600. In carrying out the principle OF levy
ing q direct tax on all personal property
the statesman has, toe, to meet the difficult
question, whether or not mortgages are to be
taxed. II seems but fair 10 d. so, and yet
the result OF doing so has always proven dis
astrous. How is he 10 deal with the exemp-
tion from taxation, under the Constitution,
OF imported goods? Is tangible personal
property, belonging to citizen of State
to be taxed though actually situated in
another State! Where are chooses in action,
as notes, bonds, &C.. to be taxed, where
they are owned, where they are owed, or
where they are actually existent? Tue law
books are full OF conflicting decisions on the
point. What, also, is the authority or policy
OF State in respect to goods i. t,amsau9
These numerous, remedless difficulties,
which gather around the principle OF direct
taxation of personal property, have led TO
its very general abandonment in other coun
trioo Wbot Mr. WaIla haa tn s;iv auO1t The