The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-07

taxation on New York city bonds. but on the
resident holders. Any system OF taxation of
debts by an arbitrary rule Of residence is in ef-
fect an arbitrary eXaction, because u is not
decIsng Of Saw ut1n tersey Se court ,6o. any dis
eliminating tax against any one OF the same
class Of property is a violation OF the Constitu-
ton of that State. As our state and others have
the same constitutional provisions, discrimi;
mating tax. as proposed II THIS bill IS beyppnnd
decision referred TO you will fnd-State. agt.
Township Committee of Redding. 80 n. j.,
Laws '6G-says; Tint tax upon the person or
property OF A.. H., and G.. individually, whether
designated by name or in any other way, which
is in excess OF an equal npportionment among
oil persons or property among the class OF per-
sons or kind oi properly subject to the exaction,
II. to the eNtent ot such excess. the taking OF
private property for public use without COM
pensation. The process is one OF counscation
and not of taxation According to this deci
sion a tax upon resident mortgngeo not inn
posed upon n non resident mortgagee at the
time Ol the making Of the mortgage. II n form
OF conflsrntion. and not taxation on mortgages,
bond and mortgage, not imposed upon an owner
Of real estate free from mortgage. is a discrim.
mating tax against the borrower. ineduitable and
UNITED STATES bonds
Without spending tmo over minor details
Of this hill. which it hardly seems worth while
to con slider in view Of the grave defects already
pointed out. which should be enough 10 prevent
its ever becoming law, lot US look for a mo-
lnent at one Of the most prominent errors in
the Senate bill. Section n Of that instrument
provides that no person who owns United States
his assessment on account 81 his Indebtedness.
while persons not owning United states bonds
are entitled to such deduction. This Is clearly
uncnnstlutiona. II II only a form OF reaching
United States bonds TO deprive the owners Of
any rights, privileges. and immunities which
time tO time made attempts in various round.
about ways To achieve IN some manner the tax
alton OF United States bonds but without sue
cess. Recently the Legislature of Indiana pro-
Nidcd that every resident of that state should
report the amount Of property or money he had
a. hHt la
| within the previous year and that he WIS 10 ba
subject to a tax ON such properly or money a.
| bonds, But the State Court held that this vlo-
lated the Constitution OF the United States and
United States bonds that It was a change OF
form but not Of substance; that in substance II
was tax on United States bonds Recently.
TOO the state OF Kentucky imposed tax upon
the income derived from United States bonds
and ths Court OF Appeals Of that State held that
TINS was only another form Of taxing United
stntes bonds. The conclusion therefore. is
irresistible that any form OF burden. or dcrri-
vnton Of rights or privileges or immuniiies
upon an owner Of United States bonds by rea-
son OF such owners hip, Is in effect tax on the
this legislation would be an attempt to arrest
Impair and burden the borrowing power OF tho
Cntcd states. The implied constitutional pro-
hinitlQn ol states taxing tho borrowing power
OF the United states Is not against names but
tninss. ss ~ means that the national Govern
borrowing Of money free from all forms Of
taxation or restriction. or otherwise the bor-
rowing power OF the United States may be en-
tteiy arrested or impaired IN given State.
REAL ESTATE TAX THE BEST.
The best form Of taxation for local and State
purposes Is an exclusively real estate tax. More
than ono-hat OF the taxes collected in this
country are collected by the general Govern
mont and the national taxes are all collected
from personal property. II there is any fancied
necessity for equality OF taxation between real
ana personal property. II can only be accom-.
piishel by the States taking the exclusive field
OF rpulty All Nieihln and funnibfa IL
upon real estate. Commodities aro only
legal fiction. They are still on the land. and
produced on the land. and consumed on the
land. Land has no value. except for its capa-
city to produce personally. and tho value Of the
land Is always Ia eH,net proportion 70 it's power
~ personal property immedlately upon It, or IN
the Immediate neighborhoOd reflected upon IL.
You take the statistics Of Ohio. for instance. and
n the agricultural districts thg land bears a
direct ratio 10 the personally. The city OF New
1ork; or rather me land covered 10y ihe rity oi
New York. II ithud no personal property upon II,
orrehected upon IT, would bo worth Just rs much
as when Heudrick Hudson discovered It. and
40 more - less. pnl that is-nothing NJ all. The
value OF the land may be said 10 be- In propor-
tiou % the crops II produces. and this land has
now produced a crop IN the form of n city, the
most valuable crop That laLi can produce.
Tnxation Of real estate will pormente all forms
OF personal property within thc tuNing district,
from the taxing district and follow such prop
erty wherever IL goes. Therefore there is no
necessity Tor spending money ANA tliln Iroluf-
ing yeNatous ANNOYANCE and trouble which
are burdens. iu taxing small atoms or
innnitesimnl quantities OF personal prop
erty can be 80 directly ma efrc,tyeiy
reached through the land which produces and
contains the personal property and npon which
personal properly IS consumed. Inc natural
laws OF supply and demand. cost oi production
and competition. Will dfflse the real estate tax
with unerring certainty upon everything else.
WHAT CORPORATIONS TO TAX.
There are other sources OF taxation that may
with prouriety be resorted u. provided the tax
Is imposed with uniformity upon the class OF
property which is made subject 70 taxat lon.
Corporate banks OF deposit other than savings
banks. and Incorporate trust companies, may
be taxed because they can be uniformly taxed.
And marine and fire Insurance companies
might without injustice be uniformly taxed,
but in order to protect the domestic insurance
companies against the competition OF foreign
untaxed companies il would be necessary that
tine foreign companies should b" subject 10
tax on their gross premu ums collected IN thls
State But any taxation OF these moncyed lnstl-
tutiOns would be diffused on other property. and
can be justified on tho ground only that imTne-
dlate competitors can be uniformly Durdrncd.
A moderate tax on the gross receipts OF gas
companies, similar to tho tax imposed upon
such companies in Paris. might BE- levied and
made Uniform on all production OF gas within
the taxing district. The true s'ienco oil taxa
ton Is to tax all tho articles OF the same class
uniformly and 20 obstruct as little as boss Bile
al movement ~ property, and 10 avoid all IN
quisition and detailed examination 81 property
and all friction and expense OF minute taxation,
Trade and commerce aud production will be
developed, Just in proportion as the articles
subject 10 taxation are limited IN number while
the basis OF taxation Is sufficiently broad 70 pro-
duce no immed late suppression OF a given bus
mess or throw out Of use any given property.
Real estate cannot be dispensed with. We must
live upon il, and We must consume It's products.
We cannot find any substitute for H. and there
foro any tax upon 1t must be, By natural law
diilu-ed.'
1TRg TYoNS'S (HRISTENIyG.