Evening star. [volume] (Washington, D.C.) 1854-1972, 1880-01-17
The Question of Taxation.

The Question of Taxation.
THE TAx-BIIIs BEFORE CONGRESS.
NJ. EditOr:-The tax bill prepared and pre-
sented to Congress by committee of citizens
as substitute for the tax laws now in force in
this District was very carefully drawn, and all
of its sections were thoughtfully considered. By
. 1t the greatest amount of revenue can be Sc
cured with the least oppressive taxation. 1t
effects such diffusion of taxation among our
people as will be equitable to all and onerous to
none. The present tax system is the most in
equitable that can be devised. Under it an
honest man is compelled to pay tax equal to
from one-fourth to one-third his income, while
the dishonest man pays but nominal proper
ton OF his. This is not only so here, but Wher-
ever similar tax laws prevail, and are enforced.
Where such tax law is moderately enforced
1t is popular, because "the extreme inequality
and uncertainty OF tax assessed In this man.
ner can be compensated, for only by its extreme
moderation, in consequence of which every man
finds himself rated so very much below his real
revenue that he gives himself but little disturb
ance, though his neighbor should be rated
somewhat lower"
BY the reports of the treasurer and assessor
Of the District OF Columbia for the year 1879, it
appears that the revenues under the present
law diminish yearly. The whole assessment
voluntary and arbitrary, for the year ending
s125, 900 was collected and it is doubtful whether
any considerable portion of the remainder can
be collected.
1t is estimated by their reports that for the
year ending June 80, 1880, the assessment will
yield but $4,000, and 1t is doubtful whether
more than half of 1t can be collected. The peo-
pie who are so disposed have learned how to
evade the tax, and no human power can pre-
vent such evasion.
By the system of license and other taxation
prescribed in the proposed law the revenue from
$500, 600 annually, while experiment and eXpe-
rtence show that but less than half this sum
This is not an idle assertion. These estimates
are based on official and other data, and are
certified by the assessor and collector.
NOW. II ms blil 10 which nearly r, the whole
revenue that can possibly be raised under an
odtous system, Congress should not hesitate to
pass 1t. 1t should matter little to Congress how
our revenue be raised, provided it be raised in
manner the people prefer; and we simply de-
sire to raise it in our own way. 1t
may be urged that this Dill Is not the visa
under the present system, pay no taxes, but.
under that proposed, will have to bear their
Just proportion Of the burden Of taxation,
ten thousand business pursuits, avoce
lions, professions, &C., and only Il
Of them con, contribute anything towards the
will apply tax 70 the = who escape under the
present system, and TO the nonresident dealers,
so that every man making money out Of this
community shall contribute his share OF the eX-
penses OF the government which makes his
business profitable and pleasant.
This is non-commercial city, and to continue
oppressive laws here will check its growth and
retard its development Relief from such laws
will induce men of wealth to make this District
their home, and by this employment and profit
will be given TO our mechanics, merchants and
professional men. The tax on invisible
property, book accounts, notes OF hand,
mortgages, &C, now yields to the local
1y. Shall the growth and prosperity OF this Dis
trict be stopped for so small sum? This Is
very serious matter for our people to consider:
Among the many Intangible things attempted
to be taxed under the present system are the
book accounts OF physicians, lawyers, mer-
chants. mechanics, and all men doing business
sible for any man to make return to the asses
sorwith any certainty that he will not have to
pay tax on worthless Indebtedness.
Men everywhere eliminate all such matters
from their returns. Conscientious men, how
ever, cannot do this, and an unequal burden is
thrown upon them. The tax upon mortgages,
yield no revenue in the future; for when the
rate OF interest prevailing here is, as 1t is now,
not greater than OK and often per cent, the
resident investor will put his money into Z. S.
per cents, which will yield to him as much
interest as mortgage bearing 81 per cent.
interest, and offer him more readily exchange
BILE security. The result will be that residents
OF states, such as Pennsylvania and Maryland,
where mortgages are not taxed, Will take such
mortgages as are offered here; and as our tax
laws cannot affect non-reSidentS we can expect
no revenue from such Investments.
Again, the law is easily evaded by the resident
lender taking from the borrower deed In fee
to property upon which the latter wishes to
borrow money, giving him lease providing
that the equivalent OF interest shall be paid as
rent, with the privilege OF redemption at the
end OF the term for which the loan is needed.
In such cases all the conditions OF mortgage
exist; but it is difficult TO see how the lender,
who, TO avoid the tax, becomes the owner OF the
invisible property will escape taxation. The
experiment of taxing invisible property
has been tried here and proved failure as to
revenue, and no penalties, than can be devised
will increase the returns from such property.
To indicate some OF the features OF the pro-
posed BILL 1t may be mentioned that the banks
and bankers OF the District, who, collectively.
under the present laws, pay but s2s6.25, will
pay tax OF over $1,000 annually; stock CON-
panies will be taxed the same as under present
laws; banks and bankers will be taxed on their
deposits. and all the money deposits of the peo-
pie will be taxed under the head Of capital in
vested In business.
proposed bill, which provides an equitable sys-
tenn OF taxation, that meets the approval OF
nearly the whole people and by which no one
Is subject TO hardship, and which VIII provide
double the revenue, should be substituted for
the odious, yet unfruitful, law now In force,
which Is an fnqutsition into every mans pri-
In order to accommodate the tax to him, watches
over all the fluctuations OF his fortune and ex-
poses tAem-a law which will drive away capt.
tai and enterprise from the District and by re-
ductng the annual revenues add q greater bur-
den to real estate.
Il is proposed In the bill offered a few days
since by Mr.. Neal OF the House committee on
the District OF Columbia, to enforce this law by
extreme penalties; to subject every man and
his affairs to the espionage OF detectives to ar
bitrar1ly compel his clerks and employees to d.
vulge the condolences OF his business, and by
fines and Imprisonment Cypress delinquents,
whether voluntary or not
Should these provisions be adopted by Con.
gress, then our people viii realize how odious
inquisitoriai, inequitable and Ubiquitous this
law Is j. A. B.
eISwitzeriand Is this winter almost one