The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1892-03-23
MISREPRESENTATION.


Misrepresentation.
Between misrepresentation of Prof
Ross, thorough ignorance of the subject,
entire forgetfulness of It's own record, or
rather its several records, and an irresisti-
BILE desire to do something for the OPP
pressed corporations, the Journal has
evolved one of the most remarkable edi-
torials on the new tax law that has yet
flashed athwart the journalistic heavens.
Prof. Ross. in common with many others
who follow Prof Ely, holds that the gen.
eral property tax is a failure so far as the
tax on personal property is concerned.
Unquestionably it has been so under the
systems of this county as administered,
and no paper in Indiana has said so more
often than TIE SEXTINEL-in fact we be-
lieve we were accused OF favoring the
single tax on land values on this account.
On account of this failure Prof. Ross pro-
poses to do away with the general tax on
personal property and raise all local reye-
nues from five sources-(l) the tax on real
estate (2) taxation on natural monopolies !;
(3) the income tax; (4) the corpora
ton tax, and (5) the inheritance tax The
Journal, which has been moved to spasms
in the past by the suggestion of abandon
ing the general personality tax, actually
Endorses this proposal, and then demon
strates that it has not the sightest con-
ception OF what il is indorsing by express
ing a belief that the next legislature will
make an effort to distribute the public
burdens among greater rarieties OF prop
erty."
Persons who have paid any attention to
the subject OF taxation will understand
that Prof. Ross is dealing with taxation
from a theoretical standpoint. His ideas
have been presented and considered in
many states but no state has adopted
them-none has abandoned the general
property tax. In several Of them some Of
the four forms recommended by him as
substitutes for the general personality
tax have been added 20 the general tax,
and Indiana is among the number. For
several years she has levied a cor
poration liranchise) tax on various
corporate businesses and the last
legislature added to this license
tax on franchises. The natural monopoly
tax Is OF necessity limited chiefly 10 mu-
nicipal governments and under tho efforts
OF TIE SENTINEL public sentiment has
reached point whore its application will
be forced in indianapolis. No one advo-
Gates an income tax except as u substitute
for general tax. IL would be manifeetly
unjust 10 tax property In proportion TO
value and then tax tho income derived
from II In addition thereto. Tho inherit
ance tax Is a sensible thing il evasion OF II
can be prevented. but IL ID not yet assured
that this can be accomplished, The in
beritance tax law OF New York was war
ranted TO produce at least two million dol
lars per anDum. but II has in fact produced
only seventy-iive thousand, and 1t would
naturally produce fifty times as much in
New York as I'm Indiana. We have not
the slightest objection, however, TO tho
presentation OF Prof. Ross's opinions.
They have been very generally pre-
sented TO the readers OF demo-
cratic papers. aud were largely tho bases
OF the democratic action in passing the
new tax law. Their circulation among
republican readers will be of great educa-
tional value.
The Indiana legislature, however, like
the legislatures OF other states, thought it
better TO try to correct the abuses of the
general property tax than 10 abandon IT,.
Whether that may yet have TO be done is
an open question. Prof. Ross aiiirms that
II must be abandoned. We believe that
ii has not been fairly tried. True, strin-
gent laws have been passed, but nowhere
have the people been educated TO under
stand that the safest road to equal and
just taxation Is the strict enforcemento OF the
law. In Indiana great progress has been
mado toward it, and the result has been
most gratifying. AS soon as men under
stand that the right way TO enforce n tax
law Is 10 obey II themselves, and use their
influence to make their neighbors obey it,
there will be no trouble with the general
tax system. A just tax law il a common
friend, but II has been regarded in the
past as a common enemy. Assess property
at its actual value, uncover the money
hidden in banks, make greenback cur
rency and interstate commerce taxable by
act OF congress, and the problem is solved.
The Journal asserts that Pennsylvania
"has made moro progress than most
states" and "has taxed railroads on their
bonded debts" That Is the cry OF every
corporation lawyer and magnate in the
country. Indiana taxes railroads on their
bonded debts under tho new law |. g.. the
debt, aud the value OF the road above the
debt, are the measure Of value under the
now assessment. The Pennsylvania sys-
tenn. however, was devised in the interes,
OF corporations, and IL has done them
great service. The late tax commission OF
that state reported, and gave statistics TO
proveit, that the railroads were pay ing only
one-fiith as much tax IA tho people on tho
same value OF property. They also
found that real estate bore a greater