Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1883-02-20
DIFFUSION OF TAXATION.
Tho Operation OF q Tax on Realty.

I
The editor of tho Lancaster 1NTELL1-
GENCER holds to the opinion that, in order
to secure equality in taxation, taxes should
be equitably assessed upon all forms OF
property not exempted by law. The edi,
tor of the Record holds that taxes LAID
upon any special property will, by the
operation Of economic laws, properly
diffuse and distribute themselves hence,
that inequality in the lovy of taxes is not
important and that taxation should be
confined to few objects in order that it
may be cheaply collected.
The editor of the INTELLIGENCER per-
ceives one- half of the truth, for he admits
that a tax on realty partially ditfuses it
self, but not to the extent of equality, or
rather of due proportion. To admit
that tax may in part be shifted from the
shoulders of those upon whom it is i'm
posed is to upset tho practicability of
equalization in tho tax levy. No such
thing is possible, for two reasons-the ab
solute ownership of property cannot be
discovered and, if it were, the subsequent
readjustmcnts Of taxation cannot be pre-
vented.
But let US take up the case supposed by
the INTELLIGENCER, that in the state OF
New York the whole weight of taxation
is laid upon real estate. Lst US further
suppose that Mr.. Vanderbilt owns all the
personal property in the state and that the
editor of the INTELLIGENCER, in addition
to a thousand dollar house," owns all
the other realty. The realty in that state in
1880 was assessed at 80, 333, ,G69, S13. The
personal property was assessed at S552.'
ass, 32O. The state actually collects Gj
cents on the hundred dollars on both rea
and personal property assessed. But iol
the purpose of our argument We will as
sumo that real estate bears the whole bur
den, and that it is equal to one dollar out
of every hundred dollars worth of rea
estate. Now, it follows that the penalty
of holding real estate in New York ii
euual to one per cent. of its value, anC
that element enters into intimate relation
with every business it is possible to carry
on in that state. Rents. food, clothing, il
fact, the whole cost Of living is subjected tt
| this charge upon the realty. In any par
of the state where profits accruing from
the rental O. uso of real estate do not ad
NIT of the payment of one per cent. there
| is q now adjustment. The value Of tn
land falls until the point of profitable us'
is again reached. Such instances of i'm
proper assessment do not disprOve thu
operation of the law Of diffusion. w
now come to the operation of the rcalt,
tax upon Mr.. Vanderbilt. He eats, W
will say he goes clothed, and ho EN-
ploys other men to work for him. Ih
| tax on realty being constant elemen
in the cost Of living, and the cost o
living also determining the price OF labor
Mr.. Vanderbilt must pay tax on what h
eats and wears and upon what other mel
who work for him eat and wear. But her
is not the end. Underlying the credit o
the United States and of the state Of NeS
York is that vast accumulation of propert
we call reality. The earnings of the own
ers Of this realty, over and beyond annua
consumption, constitute the capital of tn
country. Upon these earnings are base
the value of Mr.. Vanderbilt's stocks an
the rate of interest which he can secure fo
his surplus money not invested in untaxe
bonds The burdens laid on reality, there
fore, lessen the dividends on his share
and tho interest on his money. He pay
his proportional, tax to the last tarthin
BY reason of his diminished income; til
laboring man who carries a hod for MI
Vanderbilt pays his proportion in the in
creased cost of living, though neither tn
one nor the other owns one dollar S wort
of real estate.
If pebble is flung into pond tn
whole economy of the pond is disturbe
until new adjustment takes places
Though it may not be demonstrable t
sight or measurement, we know that til
water displaced by the pebble has impa
pably raised the whole surface of the pOnt
BY the like unnoted and untraced diff
sions are the burdens Of society shifte
and cquably distributed. What is desi
able in taxation is to tax property that "
cannot drive out of the state, and to max
few or no changes and tax few things.