New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-23
TIE CALIFORNIA TAX BILL.

The new revenue bill TO which we have sew
eral times referred has passed both houses OF
the California Legislature, and yesterday
received the approval of the Governor News
papers which have strenuously denounced the
system Of double taxation embodied in the bill,
did not recommend an executive veto, since
they regarded the new statute as no more than Il
compliance with the requirements of the State
Constitution. The fundam entail wrong Is u
the organic law, and the surest way OF getting
relief is to enforce it in good faith and let the
people realize what they have done. For a
time therefore California must expect TO suffer
from one of the most absurd, oppressive, and
UNEQUAL revenue systems ever enacted IN CIV
fixed state.
The trainers of the new Constitution seem to
have had but one idea i'll devising the taxation
clause, and that was to levy a contribution upon
every person, firm, or corporation IN the State
and upon every variety of property, real or iic-
titious, to which the assessors could possibly
affix value. This rule is apparently so simple
and so democratic that to the ordinary unin-
structed legislator 1t has an almost irresistible
attraction; and it fascinates amateur econo-
mists in older parts of the country as well rs in
the law has been year in operation, that taxa
ton is a difficult science, and that the rule
which looks so fair and simple is i'll reality cum
brous, exasperatIng and grossly unjust. Every
person In California is required TO make n
sworn return once year of all his or her prop
erty, accompanied with veXatious multitude
of details aud property, IN the language OF the
Constitutions is defined to be moneys, credits,
bonds stocks dues, franchises, and all other
"matters and things, real, personal, and mixed,
g capable OF private ownership" Shares Ill cor
noratiops are to be assessed at Their market
yalue at noon on the first Monday of March /;
So that the assessors and the individual owners
must become careful observers of the fluctua-
tons of the Stock Exchange. If bull move
ment chance to send stocks up to an extrava-
CANT figure for few minutes on the first Mon
dav of March, the unfortunate holders will be
taxed on the fictitious quotations, although they
may never have been able TO sell a single share
at the nominal price. The provision for the
taxation of incorporated capital has been so far
notified that the assessment on the actual prop
erty of the company may be deducted from
the assessment Oh the shares when the concern
has its principal place of business in the State.
Residents of California, however, who hold
shares in companies outside of the State, are TO
be assessed individually for the full market
value of their stock, without deduction for any
taxes the company may have already paid upon
the same property. man Is TO be taxed on all
unsecured debts owing to him by solvent per-
sons, firms, or corporations, wherever they may
he; hat is to say, he is taxed on what he does
not possess and may never possess, but only OK
nectsto DO ssess On the other hand, he may not
deduct his debts from the assessment unless his
creditor lives in California, where the tax
gatherer can get at him.
Mortgages are made taxable, and the law stip-
ulates that any agreement whereby the debtor
binds himself to pay the tax on the mortgage
shall be void The farmers, to whom this clause
is probably due, appear to have imagined that
tbey could thus shift considerable burden
mon the capitalists who have lent them money.
The only result, however, will be to make Dor
rowing difficult and money dear. The tax will
be added to the interest or subtracted from the
principal, and the greater the difficulty in col
lecting the interest or securing the principal the
more will the debtor have TO pay, in one form
or another for the accommodation. The
tax bill and the Chinese bill go well
together; and it is not at all improb-
able that the protests against the new Con-
stitution will be heard first from the agricul-
tnral districts, when the farmers discover that it
has given them dear money, dear labor, and
dear transportation.