The Rock Island daily Argus. [volume] (Rock Island, Ill.) 1872-1873, 1873-04-14


Tax observation-disclosures Modih.
cations Of the Law
(Continued)
TIIE THEORY or TAXATION.
The theory which constitutes the basis
of the system Of taxation at present recog
uized in Newly ork, and most OF the other
States, assumes that, in order 70 tax eqult-
ably, II Is necessary 10 assess every item
and description Of property, real and per
sonal In the early history OF the country,
when there was little competition among
nations or sister States for ascendcncy in
commercial and financial affairs when
negotiable instruments in the form of
bonds which can be conveniently owned.
held and transferred IN any State or coun-
try whore they arc untaxed) were almost
unknown aud when property consisted
mainly Of things visible and tangible
lands, houses. cattle slaves, ships, &c.
and the rate of taxation insignificant
practical application of this theory invOly
ed little Of difficulty or inequality but, at
the present time the condition Of property
having greatly changed, the results Of tax
alton are altogether different Thus for
example, fully oue-6tth of the personal
nited States instrumentalities, bonds,
legal tenders, notes, or money. which, by
the decisions Of the United States Supreme
Court are entirely beyond the reach of
State authorities for the purpose of taxa
ton. In the same category come also all
imported goods in original packages in the
possession Of the importers The Supreme
Court has also lately decided that the
goods need not be retained in their origin
al packages, but only be kept from being
So broken up as to be undistinguishable
from the ordinary goods Of the country
nder the same head comes all property
IN transitu which, by the decision Of the
Court Of Appeals has been held exempt
from taxation when owned by persons
firms, and corporations established ant
doing business IN other States, but Only
selling their own goods in New YORK
through permanently located agents
In this last case it seems u work some
injustice but the life Of the city depend,
upon the amount of business transacted in
1t, and this provision attract, business from
outside. The property comprised under
these two heads alone in the state Of New
York aggregates hundred Of millions. but
Of which every dollar is beyond the reach
OF taxation The laws Of New York also
exempt from taxation the deposit, and sur
plus Of savings banks, now amounting 10
over $500. OOOObO, and in accordance with
the most obvious principles OF Justice and
constitutional law all visible, tangible
property Of its citizens, situated without
the territory Of the State, and under the
jurisdiction and protection Of some other
sovereignty. Another large proportion Of
the personal property owned by the citi-
Zru- ni the State il NJ the most intangible
character and in great part invisible and
Incorporated such for instance. n uegu-
table instruments in the form of bills of
exchange. State, municipal and corporate
bonds, and. 1t actually situated ia other
State, exempt from taxation here ac-
Embellishments fiudiyidual Indebtedness.
DC And finally in respect Of taxation hy
the arbitrary unjust UNEQUAL and pratt
cal rule Ut residence exemptinC the non
resident having the same class of evidences
Of debt and secured on property in this
state. or having the same class of visible
and tangible property within the taxing
district as a resident and a. 20 so much
cot personal property a. j. visible tangible.
and clearly within the territory and uri>.
dlctlou oi the State, but being instruments
or subjects OF commerce between States
and nations, such rs railroad cars, ships.
steamboats,, immense stocks Of raw matcri-
al and manufactured goods in store owned
or held m our great cities which are the
enterput, for the commerce of foreign
countries, and, still important, for the i'm
mcu,c commerce and trade of 81 sister
Ntdtc--all foreign nations with which
Now urA !, brought into close commerce.
al financial and industrial contact. and
also the contiguous and competing state OF
pennsylvania. exempt such persons and
property from taxation Can New York
afford to put her citizens az o cumparativ,
disadvantage IN this respect Can any one
point o. any disadvantage that has ever
resulted anywhere from policy of liberal
legislation of the character Indicated But.
uu fh, other hand. do we not see Penn,vl
wanna under her system Oi taxation ad
ynugiug with giant strides m wealth
aud population, while New York under
the influence OF old aud exploded ideas.
moves onward iu Development compare
lively at q -nails pace l. Their, not nm
iuduccmcnt and present tendency uu the
part Of capitalists TO leave a State where a
discriminating tax L. levied on It's resident
'l|ANf.hT NV iNli lNNff VI NNlINIffl Ftllll B.
mic laws will sooner or later bee iclt. and
We must bear the burden Of transgression
With at present fully twO-thirds of the
personal property OF the State therefore
exempted from taxation 10y law. or by
circumstances growing cut Of it, condition
or the natural deprayity and -el6smess Of
the average tax payer aud with a larg,
part Ut the other One-iourth exempted BY
competing nations or neighborine States
what becomes Of the theory 50 generally
accepted in the United States that in order
t. tax equitably il is necessary TO tax
everything
ADVANTAGES OF TuE SYSTEM.
II 3. under such circumstances now that
the Commissioners appointed under the
act OF 1870 come forward with n new sys
tenn OI taxation aud urge It's consideration
and acceptance upon the Legislature aud
the people. They start with the iunda-
mental proposition that II j. not possible
e. tax everything primarily ur directly
and that 10 Is not necessary q attempt il
in order 10 tax equitably hut on the con
trary that if taxes are levied on O compar.
ativclv broad basis--lke real estate-witt
certainty propOrtiunalitv. and uniformity
on few items Of property, like the fran
chi-es Of all moneyed corporations enjoy
ing the same privileges within the State,
and ou fixed and unvaryinr property-like
rental values Of buildings they will difiusc
themselves with unerring certainty aud
equality To carry out this idea they pro
pose
First: That real estate, lands. and
buildings shall be- taxed ON q full aud fair
market valuation SscoHd That moneyed
corporations and uniucorporated deposit
bankers shall be taxed Thjrd. A little
examination will show that under the two
heads above specified are included almost
MI the prnuprt,. of tho St,to nom ,,t,,,.,. i