The advocate., 1890-12-31
MORE EQUITABLE METHODS OF TAXA.
TI0N.

TO Che Edii VI OF THE ADVOCATE.
/ have been much Interested In reading
a communication from Mr. Edward Rus
sell, under the caption Unequal Taxa
ton" Mr.. Russell very clearly and
Justly points out the fictitious capitallza-
tion or watered stock, and outlines a sys-
tenn OF taxation which he believes would
have tendency TO cure this growing
and oppressive evil. He says!
Now a tax upon every corporation no lbs or.
ganlZation, IN the nature OF a license 20 DO paid
FOR its charter OF say go FOR the first 0OO and
Of one mill for each additional sum up To $780,.
600, and One.half Of one mil additional up 10
$500 and OnefOurlh OF mill In excess there.
OF. This tax would accomplish two things II
would Pay 70 the state enough 70 sustain the
Office Of secretary OF state, where all such
records are kept as the like OF corporations; and
10 would prevent mushroom corporations and
reduce the capital stocks of many TO something
near the real sum proposed 10 be Invested.
This would constitute a tax or license
fee of one and three-twentleths per cent.
upon a capital Of $iOO,OOO-or the sum Of
81, ,l5O-and Is In effect the application
Of the graduated tax TO increase produc-
Ing capital.
Now II it we're further provided that
corporations must register their capital
stock and receive their license by the
payment Of above named tax, annually or
once year; such law might prove Of
great value and benefit. But II II is TO
be collected but once during the lifetime
of the corporation, why then 1t would
prove OF no avail, as this amount pro
portioned to FIVE, ten or twenty years Of
business would be q mere bagatelle and
of no weight, force or effect
II this tax Is 10 be paid but once, at
the time the charter Is taken out, then in
that event those who abandon the agita-
tion In favor Of the graduated tax to ac-
cept Mr.. Russell's plan of taxation or
license will find that they have dropped
the substance to graspat the shadow
Very much such law as that proposed
by Mr.. Russell is now in force in the
state Of Missouri, and It certainly has no
perceptlble influence in ellmuating
watered stock or preventing the forma-
tlon Of mushroom corporations, as any
one familiar with Kansas City might tes-
tiiy. What we want 10 law that will
tax all income producing property eleven
mills upon $1,000 or under, with an in
crease Of one mill upon each $1,000 up to
$4,000, and then an increase OF one mill
upon each $4,000 thereafter. Such a
tax TO be levied each and every year, and
levied upon cumulative valuation, 80
that each firm or corporation members Of
a trust or combine, will have to pay the
rate OF tax applicable to the combined
capital Of the trust or combine.
Such a tax as this will eliminate
watered stock and all species of iictlclous
capitalization. It will also annihilate
trusts and combines and destroy land
monopoly and make the holders Of vacant
land awfully tired. II will equallze all
opportunities, profits and localities, and
prevent the formation of colossal and
aggressive corporations. Besides this, It
will force the wealth Of the nation to
bear the burdens Of its government.
GEO. @. WARD.
Kansas City, Mo-