The star. (Cincinnati [Ohio]) 1874-1875, 1875-05-20
WHO PLY THE ESP

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WHO PAY THE TAXES?
In twenty-four cities of the State oi
Kew York, with population of about
two millions, the amount of annual taxa.
tion is $4,000, 900, or about $25 Per head.
The aggregate debt of these cities is
el76, 100000, or nearly $76 per head. The
rate of taxation in these cities ranges
trom s2.M to $3.50 per $10O of assessed
valuation. OF this $176, 900 of debt
that of New York is S115, 900, 900, or about
fwo-thirds the whole, while she has one.
half the population and two-thirds OF
the wealth of the twenty-four cities.
While, therefore, the debt of the metrop-
oils is much greater in proportion to
population, it is even less in proportion
TO resources for taxation than In the
other twenty-three cities. The annual
expense of New York is $36, 900, 900,
while that of the other cities is about
f14, ,0O0, 900; so that the taxation per head
Ia $36 in the metropolis against$14 in the
other cities.
Were this expense paid equally by the
people, without respect to their wealth
or incomes, each family in the city would
contribute $3.50. But as 1t is assessed on
property, no one without property the
oretically pays anything at all. Still,
theory does not accord with the fact In
this case. 1t would seem paradox to
assert that the classes of very moderate
property and with no property at all
pay the whole of the taxes. And yet
such appears to be the fact, when 1t is
considered that the profits on capital in
New York are greater than in those
cities where the tax is only two-ffths as
much per head Of population. II proper
II, in fact, contributed the whole rev.
snue Of the city, one would suppose that
the net income of capital would be less
there than in cities Of less taxation. On
the contrary it is greater, showing that
the gross profits in New York are sufi-
Client to pay the taxes and have net
profit above that of other cities.
The system of things In New York is,
therefore, such as to enable capital to
sponge all the revenue out of labor, ana
virtually exempt itself from taxation.
This is the case in all cities. 1t is the
case everywhere. Labor pays the taxes
while capital derives the net profit re-
sulting from taxation. Hence States
and municipalities should not go into
debt. Whenever any unusual public ex-
penditure is undertaken, property or in
comes should be sufficiently taxed to
Day as the expenaiits;S:."ee is incurred. In
ttis way property would chiefly pay icy
improvements that enhance its own
value. Under the system of making I'M
provements on credit, property is only
assessed for the interest while 1t at once
realizes great advances Of valuation.
These advances, OF course, increase the
smount of tax; but in what proportion to
tie increase in valuep A public work
pften doubles the salable value of an es:
tate.
An hundred thousand dollars is OF
once raised to two hundred thousand.
The assessment in New York is about
thirty-three dollars to the hundred Of
ralue. The estate is advanced from
eas,OO0 to 10000 on the duplicate: He
therefore makes 100000 out of the i'm
provement and pays taxes on only an in
crease of $4,000. Thus for every dollar
the improvement costs him he makes
Shyee dollars. Hence the large property
holders are always glad to increase the
public debt, provided they take an en-.
tichtened view Of self-interest, and the
money be judiciously invested. By
going into debt, time is given for so ad-
susting business and rentals as to make
he poor pay the taxes.
It is said per contra that such improve
ments extend business and thereby fur
pish additional labor and better wages
This is deceptively true, so to speak
We're it not for the monopolies the people
would more generally furnish themselves
With labor and business. Every larg'
dealer would be represented BY man,
email dealers. As to better wages, tina
s3so is deceptive, since the cost of livinl
b increased ina greater ratio than thu
wages. For example, rents are doubled
hy doubling the value Of real estate
while wages DO not increase In the SAM
fstio.
a.l-
xKE FAILURE or CITxL sERT1Cl
REFORM.