The times. [volume] (Richmond, Va.) 1890-1903, 1891-01-22
th. If M IN 1@.venipr poseu Govt Report Aug ~ 1852
Re-! B Bsxass
ABSOLUTELY PURE
The INCOME TAX AGAIN.
A suggestion That Real Estate Bear
the Main Burden OF Taxation.

the Main Burden OF Taxation.
To the Editor Of The Times
Having seen in Saturdays issue Of The
TIMES an article on the income tan. and
also on the subject OF taxation on personal
property, I can hardly refrain from address
Ing an article 10 your excellent paper. TO
urge YOU TO Keep these questions constantly
before the public, until we have some very
much needed reformation in the present
methods oi securing funds for the expenses
Of the Government.
All taxation should be just and equal. 1t
might be easy 10 decide upon such a basis
of taxation, If only the theories were not
upset in practice by dishonesty on the part
of the taxpayers or by excessive cost in
collecting.
1t is generally admitted that our
present system Of raising State and
municipal taxes is such that large
number OF persons do not bear their just
| share Of the burden. Let some means be
| devised TO compel careless or dishonest
persons TO pay their just proportion. Inc
present custom of leaving II to the taxpay-
er TO make out his own list Of personal
property and income for taxation gives
some people too strong a temptation to boil
down the amount or leave 1t out altogether.
In other words. il places premium on dis
chant sending around to his customers and
asking them TO make out their own ac-
counts Of what they owed him! Would he
trust them TO think OF every thing they owed
bimi Let some steps be taken to enforce
the present law, or let the law be
changed for a better. Your recent
editorial sounded the true note IN
this matter. That incOmprehensible
piece OF English, which purports to define
AZ. oh "a nl
yised, so that there may be no question as
TO what the real meaning OF the law is. But
even the Gar of Russia would find II dift-
cult to keep some persons from avoiding the
payment Of income and personal property
taxes. so the only way out OF II seems TO
be TO devise some other method. Taxes
levied on various articles Of consumption,
and paid by the consumer when he makes
the purchase, are the least odi0us, because
they are paid indirectly, the purchaser look
ing at it simply as part Of the price 0f tue
article. But for obvious reasons this
method is impraeticsble for State and mu-
nicipal taxes.
Let US then return to real estate. This il
something that cannot be hidden. Thus the
question Of dishonesty is eliminated, and
the collection Of this tax is not specially
} expensive. so then, If it can be shown
that real estate tax alone is just and
equal one, it would seem that this method
might be adopted. Let us consider what
would be the effect Of raising the total rev.
enue from real estate basis. OF course
the present tax on real estate would have to
be increased Some persons ssy that this
is evidently unjust, because the man who
has all Of his property in personally has no
tax to pay, while his neighbor owning real
estate has more TO pay than he would other
wise have. But let us see If this is really
~ no hot -
estate must get the extra taxes
: out Of the tenant OF his property.
The man that owns no real estate must eat,
sleep, and be clothed. All Of these things
are Intimately connected with real estate.
In the house that be rents he must pay a
part of the additional tax IN the greater
rent that he pays. The clOthier, the shoe
maker, the butcher, the baker, etc, having
more rent TO pay, charges more for their
supplies, and so the consumer must finally
help 10 pay their taxes. Some one says;
"Yes, but the real estate owner must also
live and S. pay taxes in this same way"
Very true, but simply want to show that
the man who owns no real estate does have
| 10 help pay real estate taxes. And for
| every man who owns real estate there are
? perhaps ten who do not own any, but who,
G nevertheless, help 10 pay the tax, and SO
e equGiiZe things. But further tnan this
Il nearly every lOFlu OF personal property ludl
J brings IN any income may be considered az
! loan, whether a bond, note, share OF stock
horse, cattle. or what not. Now take man
who owns 100000 in cash, which. under
the present system he has been lending out
at per cent. interest. say TO some large
manufacturing concern. Under the pro
posed method OF taxation he goes 10 IN,
d, manufacturer to renew his loan, but the
/ manufacturer tells him that, by reason o.
4 his increased expenses. in the way of rent
4 cost Of materials, &c, he cannot afford e
pay more than per cent. interest. The
/ mOney-lender thinks he can do better else
where and takes his money away; bu
: after trying various other persons VIII,
need money, and finding that the same
, thing affects ALL he concludes that he mus
be satisfied with D per cent. And 1t is bu
fair that he should get less Tor his money
, because he is thus bearing his share Of the
t, Governments expenses. And so we see
that by the natural laws Of trade, the law.
Of supply and demand, matters would be ad
justed to the new order of things.
Now, Mr.. Editor, don't understand that
would have all this changed in moment.
Z Great revolutions should move slowly.
, would like TO see this result brought about.
But could it not be done gradually! Could
: not the real estate tax be gradually in
creased and the other tax at the same time
be gradually reduced, SO as to bring about
the change without a shock TO the pros
perry Of the country }. AL.
Richmond, Va, Jan. u, 1891.