The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1873-04-10
A New System Of Taxation.

A New System Of Taxation.
A few evenings since Mr.. David A. Wells
who is one of the commissioners of New York
for the purpose Of devising system of equit-
able taxation for that State, by invitation.
gave an address before the Union League
Club in New York city briefly explaining
the plan that has been recommended for
adoption. Mr.. Wells has well earned
reputation as arains taking student of politi-
cal science and his opinions, though not al
ways of practical application, are entitled to
great consideration. :, e.
Mr.. Wells before giving the outline of his
plan for state and municipal taxation, produc-
ed some figures showing the striking inequal-
lily of the present system. For instance, in .
speaking of the inequality of taxation in New
York, he produced some figures which are as
tonishing and as they have not been denied,
we suppose they must be accurate. In Kings
county we are told that the average assessment
is sixty-seven per cent. of the value of the
taxable property and that it runs down from
this figure to fifteen per cent. in many parts
of the State, the average being about forty
pcs cent. These differences are not to be ac-
counted for save on the ground of official
carelessness and improper methods of assess
nent. In thecase of personal property the
condition is still worse, Us revealed by COM
parison of the variation of certain counties
made in the late government census and dur
ing the same year by State officers. For in
stance, Albany county stands at forty-seven
millions in the State valuation, and at one
hundred and tifty-seven millions in the CEN
sus; Kings county at ninety-four millions in
the former, and seven hundred millions in
the latter; while New York county differs on
ly as nine hundred and twenty-eight millions
from three thousand four hundred and eighty
four millions Basing his opinion on facts of
this kind, Mr.. Wells with some reason, con-
cludes that the State of New York is afflicted
with system of taxation as unjust as can be
found anywhere. 1t is more than probable
that if an examination were made it would
be found that New York is not alone in this
matter. Careless officials and improper meth
DDS of proceeding are to be found in other
States where the circumstances are as yet nm .
known. a
The theory which constitutes the basis of
the system of taxation at present recognized
by New York and most of the other States of
the Union, assumes-that, in order to tax
equitably, it is necessary to assess every item
and description of property, personal and
real. In the early history of the country
when property consisted mostly of things Wis
ible and tangible like lands, houses, cattle,
ships. ETC., the practical application of this
system involved little difficulty But now
the condition of property has greatly changed;
for example, onc-fitth of the personal proper
ty of the country consists of the bonds, legal
tenders, notes or money of the United States
which cannot be taxed by State authority.
In New York the deposits of saving banks
amounting to three hundred millions Of dol
lars came under the same head. Ey the ex-
emption ofimported goods in original pack
ages and of property in trausitu, millions of
dollars are withdrawn from taxation; while
large classes of property, such as bills of ex-
change, bonds of various kinds, acknowledge
ments of individual Indebtedness, are of so
changable and intangible character as never
to reach the assessors lists. Indeed, Mr.
Wells makes the astonishing statement that
the amount Of personal property taxed in the
State of New York is not equal to the capital
and surplus of the banks and deposits of the
savings banks of the State, and that in New
York city with population Of q million, less
than two per cent of its citizens (19,332)
stand upon the books of the assessors as pos
sessing taxable personal property
Having shown that it is an impossbility to
tax everything primarily or directly with any
degree of equality, Mr.. Wells and his asso-
ciates ask the New York Legislature to adopt
a new system by which it is proposed to levy
taxes on comparatively few articles of prop
erty, but of so general q character and of SO
unvarying nature that the taxes SO assessed
will diffuse themselves to all classes with un-
erring certainly and equality. The system
proposes, first, that real estate land and build
ings shall be taxed on full and fair market
valuation: second, that moneyed corporations
and unincorporated deposit bankers shall be
taxed third, in addition to these two classes
of taxes, all real estate is to be assessed a sum
equal to three times the rent or rental value
Of all buildings thereon. for the length of time
actually occupied during the year ending the
thirtieth of April previous to making the as
sessment. or for the apartments of said build
lngs as may be occupied. The buildings own
ed by corpoi atoms named above and subject
to taxation on their shares or privileges are to
be excluded from this last tax. This last tax
is designated by Mr.. Wells as the sbuild;no
occupancy tax.
Mr.. Wells assumes that the objections to
this system will be mainly restricted to the
third provision of his plan which is a substi-
tute for all existing assessments on personal
property, and asks attention to two consider.
atoms, viz:
First: No person can pay rent in any amount
necessarily have thrice the value of such rant =.
rental value in personal property,
Second: A tax on rentals or rental valpa. 90 |
buildings is especially tax on income ar Nv y.
Penditure without the machinery of neraonoi
..uuquislton and annoyance, and rent e 49,
w tuaa any one thing. the sign of personal nronor
81. Npense or consumption, and the ind;yiJr
man nam; measure of his ability to exnana a
income of 81 ~, 600 annual rent must have an |
capital in some 1000, which pre-supposes a |
worth at least SAC, 1000. property or brains
Such In brief is the theorv os ~,
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