, 1873-09-03
DOUBLE TAXATION.

Tho stato Board Of Equalization Of Taxos has
now before 1t tho question Whether tho State
shall tax tho property of corporations once.
twico, or thrco times. For purposes of couYol-
1onco in tile matter Of business, o groat many
companies lavo boon organized undor tho laws
OF tho state. ln aonlo cngcs, tloao companies
haYo special privileges, such as tho horno-ra1-
way companies; but tho great minority Of thom
hnyo no powers not equally opon to ali othor
cstizonH. Tho property OF all these corpora
tions- is. tho roal estate, buildings ft1r1li-
turo, md nil othor tangible property,-is, Of
courao, taxed just )iko tho property Of NIL other
citizens. But 1t ia proposed now to tax all
thcso corporations, first, on all their roal
and personal property; second, on thoir
capita1 stock; third, on their franchises,
which, of course, aro tholr chartered privileges.
Thoro arc those who claim that thoro Is no dor-
bio taxation in this. But It even extondB be-
yont and lovios another Tux on the sharog Of tho
stock hold by tho Stockholders personally. Tho
Constitution gives tic Legislature power to tax
property, whether belonging to individuals or
or corporations "owuing or using franchises aud
privileges in such manner as it shall from tino
to timo direct by general Inv, uniform as to tho
class upon which it opcratos." But tho Consti~
tuition did not intond that the Legislature should
tax the aamo thing moro than onco. 4 corpora-
tion Is IN aggregation Of tho subscriptions Of q
cartain number of parsons, who unto their oap-
tal TO invest in and carry on q certain business
with their 100000 cash they purchase real
ostnto and buildings stocks Of goods o, ma
terials, machinery Or tools. Tile cortifloatos Of
atock aro writton evidences Of tho interest OF
tho respective poraons in tho property Of tho
company. When, therefore, the States taxes
tho property owned and held BY thd company, 1t
oxhauRta it's powor; when, in addition to taxing
tho property, it also taxes tho papor evidence of
such property, it duplfcntos the tux, which is be-
yond tho power Of any Legislature to do II
may tax tho franchise or privilege, but TINT ia
when the franchise or privilege is special one,
and not ono that is open to everybody o1so. For
instance, If twelve Bhoomakors, insteal of carry
ing on business separately, unite and under tho
general law organize as d company to mako
shoes, how much is the privilege to mako shoes
Jointly worth to them in oxceBa Of tho right onoh
Of them had to mako shoes separately? In that
case, they gain no franchise Or privilege by tho
act OF incorporation tint toy did not llavo bo-
fore; and to tux thom on their property, and
thon on their capital stock, and thon OH
their franchise, and posgbly, also, individ-
ual1y on their respective shares, Is pilng tax
aftor tux on tho aamo property in moat reck-
loss and illegal manner. L. franchise or prlyi-
lego in tho meaning Of tho Constitution to bo
taxable n1Ht hayo aomo special yaluo. Tho man
who haB learned trado can hardly be taxed un-
dor an idea that lo has franchise or privilege
OF setting type, or cutting stono, or making
clothes. How can ono u1an be taxcl for priys-
lego which is equally open to MI other porsons?
How can tho Board OF Equalization fix tho valuo
of privilege which is equally FREQ to any poruon
who exercises it2
Tho duty of tho Board of Equalization ia a
plain ono; TINT duty ia to See that all tangible
property is taxed lin proportion to tho yaluo"
thereof, and having gathered in all tis, try aud
find my intangible property not represented In
TINT alroady taxed. When 1t Inns taxed all prop
orty onco, lot 1t close up ita session and adjourn.
Time spent In IN cndoayor to tax tho aanlo prop
erty two or throo tin,oa over is tine wasted, aud
any notion looking to That ond mutt OF necessity
defoat itsolf.