The critic., 1890-12-29
MEN OF THOUGHT.
THE AMERICAN ECONOMIC Ass0CIA-
TION DISCUSSES TAXATION.
Papers Read by Professor Seligmu and
Hon. Thomas &. Shearman-Thc Busi.
ness Gceting-To BE the Guests OF
the Cosmos Club.

the Cosmos Club.
The American Economic Association |
continued It's session at 10 o'clocl; this |
morning, the first paper being read by |
Professor Edwin Il. A. Selignman, on |
the "mcidcnts of Local Taxation
lie dealt only with the incidents Of the |
local real estate tax dividing them into |
two branches, the land tax and the tax on |
city real estate
IA tax on economic rent" he said in |
abstract, "all writers are agreed, will fall |
on the land owner and cannot be shifted. |
A tax on agricultural profits, produce or |
value Of the land owned, some have sup |
posed will be shifted. Bat the Ricordian |
theory holds good only on the assumption |
of the absolute mobility of capital, and |
the complete isolation of the community.
In practical life all these assumptions are
untrue. The land tax will tend to rest on
the land owner, not the consumer.
I'm city real estate there may be three
systems: % q tax ON the ground owner
the single tax idea; (2) tax on the house
owner-the continental SYSTEM (3) n tax
on the ground owner who is at the same
time the house owner-the American sys-
ten.
"u) Ajax on thcground owner can never
he shifted. A tax on the house owner, If
II he n special tax, will remain on the
building owner when population increases
or is stationary. IL will be shifted on the
ground owner only in exceptional cases.
1t will be shifted ON the occupier in the
normal condition Of advance in economic
welfare.
"lf 1t is not an exclusive tax, only so
much will be transferred to the occupior
as exceeds the usual rate for other prop
erty. The remainder will fall on the
house owner.
"(2) The incidents of the American
property tax in cities depends partly on
the relative value of the house and lot,
partly on the actual enforcement of u gen
eral property tax, partly on the peculiar
circumstances of each case.
I'm proportion, as the general property
tax is practically real property tax, and
as the value of the house generally ex-
ceods that of the lot, the main burden of
the tax under actual conditions of increas-
ing prosperity is shifted to the occupiers
The property tax in American cities Is in
the main borne by those least able to pay.
''(3) A tax levied on the ocCupier will
rest, as to the building rent portion, al
most entirely on the occupier, and as TO
the ground rent part will fall to some ex-
tent on the occupicr, by far the larger
portion of the tax is born by the tenant.
The English system is even more unfavor-
able to the ocCupier than is the Ameri-
cam
Hon. Thomas G. Shearman followed
Professor Seligman in Il paper upon
Crooked Taxation"
THE long and universal popularity of
methods of taxation" he said, (which,
in fact, oppress and even plunder those
among whom they, are popular, is the
best illustration of the value of u name.
For not merely the popularity of these
forms nf taxation, but even their endur-
ancc for single year, out of the CEN
turics during which they have existed, is
due entirely to the judicious selection of
a name.
"Therc is in existence in nearly all ma
tons system of taxation which bears
certain uniform characteristics. No one
| can tell the precise amount actually con-
tributed to the support of government by
any one person under this system. No
| one can tell how much of the money paid
| 10y the final taxpayer goes to the support
| of the government or how much goes into
| the private purse of tho individual. A
large portion Of the final tax burden is
| invariably perverted to private use. I'M
| der this system honest men are often
| forced to abandon honest work and to live
| upon legaiiZed robbery. IL has been in
| tentionally applied for a century in Amer
| lea and for at least two centuries in Eu-
| rope. The whole burden of such taxes
| rests upon consumption and not ut all
| upon wealth.
"The system actually exempts property
| FROM the support of government and
| draws taxes only from those who have to
| spend and in proportion TO their wealth.
| as the necessary expenses of the very rich.
| These taxes bear with n hundred-fold
severity upon the very poor rs compared
| with the very rich"
Averaging all classes of society under
d Ia Il. .laat s..,V
| bly, pay ten times their proper share of
| taxes, while the rich pay less than one
| tenth of their proper share. In addition
| to this, the system generally, though not
| invariably, adds to the cost of supporting
| the Government, a private profit 50 large
as TO exceed the whole amount of taxes
| paid by the rich as class. The whole of
this private profit goes to q portion of the
| richer class, thus exempting them, as q
| class, from all taxation and giving them
large net profit from the very fact of tax
| alton.
"This system, therefore, perpetually
increases the natural savings OF the rich,
| while II almast swallows up the natural
sayings of the poor. The tendency of
this method OF taxation Is therefore
| "Q) To make the rich richer and the
"(2j To shift the burden Of taxation
| from those best able 10 bear IL 10 those
least able 10 bear H.
| "(3) To remove all checks upon the cx-
tTavagance of government by making the
| only persons who know that they pay
taxes indifferent rs 20 the amount Of
taxes, II not actually interested IN main
tanning needless taxes for the sake of q
| profit upon their recollection.
| "(D To force into existence q class OF
| wealthy men, whose income depends
upon legalizod robbery.
| 40 10 complicate the business of the
country with taNation "a that enormous
burdens are kept upon the people for fear
| that vested interests Will suffer IL these
burdens are removed.
"(O TO promote bribery aud corruption
by making business profits directly DEPEND
upon political action"
An amendment was presented and
passed increasing the lifo-momhenhip fee
from S25 10 $50, The constitution was
also amended, ON motion OF Professor
Caldwell, providing for the appointment
Of committee Ia manage and c,lit o
scientific publication for the association.
| AT the conclusion ut the session To-
morrow afternoon, Professor Moultnn will
deliver an address ON the "lsXtcnsiun Of
the University system
| Tonight being the "iivld Night ~ the
Cosmos Club, an invitation was extended
TO the members to take advantage Of the
privileges OF the clubhouse.
| These new members uf the council were
announced; Professor Blackmnu. H. Il.
Bowker John q. Brooks, Professor Cow
man, Il. +, FalkneE Professor Ferguson,
Professor Garrison, " T.. Gilman, Mr..
George Gunton, Professor Henry ".
Farman, Professor 4. T. lladloy, l.. u.
| Hawlcy George X. Holmes j. T.. SlhWab,
4 4H.1a aH nj