The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-05-22
How TO Tax.

The requisites OF wise system OF TAXA
ton are: first; that should secure equality O
assessment; second, that it should be certain
and economical 10 the collection; third, thai
it should not trouble and annoy the tax
payer. and, fourth, that it should rot attec'
production. The facts set forthIin previous
articles show that the system of levying
direct tax on articles Of personal property
possesses none of these requisites. tits in
quisitorial, and under the most favorable
circumstances thirty or forty per cent. OF the
personal property in any given community
escapes its operation. .Oaths are powerlesf
to prevent evasions of it. The consequence
is that some are taxed and others are not
It is this inequality that constitutes the
burden of taxation, and it has been found
that taxpayers complain not so much o
their own burden in that respect, but OF the
fact l,lat their neighbors escape altogether.
Just al; minute animals OF delicate structure
are found to exist under enormous pressure
at great depths in the ocean, because the
pressure is equally distributed on all points
of Lhei. surface, 80 taxation is not felt where
q like equilibrium ismaintained Moderate
| ly prosperous communities will bear very
heavy saxation where it is felt to be just and
equal.
Fully recognizing these facts, all the lead
| ing civilized and commercial nations OF the
world indeed all nations civilized and un-
civilized except the United States, have
| abandoned the attempt to levy direct
taxes on personal property in the pos
session of individuals, as something that no
government which rules through laws can
do with equality, while the civilized world
is further agreed that the attempt to enforce
such law are prejudicial t. the morals and
material progress of a country.
1t is said that oil operators find that one
we'll sunk In the right spot will drain the
whole tasin better and with less disturbance
to the surrounding country than many. So
it is with taxes. The less d:Tased they are,
the more efficient they prove themselves,
distributing themselves with wonderful uni
formity over all the property OF the country.
Every person possessed of personal prop.
erty, unless he convert Il into money and re-
frain from oil use Off, affords some sign or in
dex OF i.s possession, In England, France,
Belgium, Holland AMI Scotland, in all OF
which countries our system onceprerailed,
experience gained through years OF practice,
and assisted by despotic administration, has
led to the conclusion that the rental value OF
houses or other occupied buildings is the
most certain index of the value OF the per-
sonul estate of the owners or occupants,
and is the best measure of the individuals
income and ability to pay taxes. Mr.. Wells's
recomm sndations arc as follows:
l. Tax real estate at uniform valuation.
2. As the equivalent for all taxation on
personal property, tax the occupant, be he
owner or tenant orany building or of any
portion Of any building used as a dwelling
or for any other purpose, on q valuation OF
three tiu1es the rental or rental value of the
premises occupied Tenement houses occu-
pied by more than one family or having q
rental value not in excess of fixed sum, to
be taxed to the owner or occupant.
8. Tax corporations, created by the State
which are in The nature OF monopoly, such
as railroad companies, gas companies, banks,
private bankers, (by way of license, insur-
ance companies and savings banks, on their
surplus. Manufacturing firms aud corpora
tions would not come under the rule. Such
taxes are easy to collect, and distribute them
selves over the whole community. The tax
should be levied on the aggregate value ef
the stool; Of the corporation and its debtless
cash on hand. 1t is thought that in the
State of New York such plan at the present
rate of tlxation would produce more than
the tax upon the whole personal property of
the State.
4. Exempt all other personal property eu-
tirely.
1t is objected to the second Of these rules
that it offers premium on cheap structures.
The answer ls that wealth instinctivey seeks
to display itself in ornamentation OF person
and estate. I
Again. it may be urged that under this rule
person having no real estate and large
personal properly, aud living in a hotel or
cheap apartments, will escape taxation.
Now, in The first place, if his property is iu
stocks. &C., he will be taxed under tile third
rule L in United States or exempted
stocks, lie would escape under any system
of the di:ect tax, but under this system the
tax on land reaches hin as consumer. If
he owns only bonds, notes, &c. it may be
observed, first, that there canuot he many
such persons; and, secondly, that person
determined to escape direct taxation can do
so equally WE'LL
It is cont.nded for the new system that it
removes the temptation to fraud; the tax
gathers will be scarcely seen; disclosure OF
property and the making oil Oaths will be
avoided; production OF every kiud, shipping,
trade and commerce will be untranmelled;
the various legal questions arising out OF the
present system will be spared; United States
bonds and the surplus funds OF savings
banks will feel the taxation and the money