The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1892-12-24
The Tax Question in New York.


Prom file NtN lofh liiheH.
Year after year the question OF revising Inc
tax laws of this State has come up IN the Leg
islature and been dealt with in an Ineffective
fashion. There are indications that at the
coming session It will receive more attention
than usual, aud it is important that 1t should
he dealt with inteliigently. A joint commit
Tee az The Legislature has been making some
rather desnltnry Investigations of the subject.
and is expected to make some kind OF re-
mort. and there is also Commission oi he
vision that has been working upon IT. Tins
commission is said to have prepared some
radical amendments Of the existing law,
which will he presented to the Legislature,
including a .'sy>iem' for taxing personal
property.
The basis of reform ia our Staietax laws
shouid be a complete separation OF the assess
mept of State and local taxes, and the
nuestion of taxing personal property should
he left to the authorities OF each county.
There is no reason wig the revenue Tor STATE
ourpOses should hni he derived wholly from
sources apart from the assessment oil elmer
real estate OF personal property IN the ordIna-
nv sense. A large part of II IS obtained ~
tba, way already. aud the system can be read.
iJy extended. The great corporations which
have the benefit Of exercising public franchises
cam easily bear the bulk of the burden OF
State taxes. provided their securities are freed
from further exaciions as personal property,
and then the inheritance and succession tax,
and perhaps other special sources OF revenue
would make up the rest.
There is a great deal OF misconception and
confusion of mind on the subject OF personal
taxation, especially with reference TO the es-
cane of large amounts of property from their
nroper share of contribution for public pur-
poses. A very large proportion ofthe wealth
of our citizens consist of investments IN cor,
porate enterprises represented by stocks ana
bonds.
These securities are not property IN them
selves; nor are they capital, but they represent
capital invested and in use, and property IN
other forms. Stock and bonds in a railroad
corporation, for instance, represent Individual
interests in the capital which is invested and
employed in the property and business oil
railroads. If the corporation and their pro
perly and business are taxed, tins capital Is
making It's contribution 10 the public revenues,
and does not escape because the holders OF
the stock and bonds are not taxed upon IL
again. Moreover, capital employed IN bust,
ness of any kind pays the tax that Is assessed
unon the real estate which it occupies and
nses. and the value of that real estate is de.
tcrmined largely by the amount OF capital
employed upon it.
We have often maintained that the complete
abolition of the direct taxation OF personal
uroperfy would cnnduce TO equity ana falr-
ness, as well rs to simplicity and economy
in the tax system. The difficulty OF accom-
plishiug such a reform lies IN the differences
of opinion. if not of interest, between rural
and civic communities. Farmers and land
owners have "A notion that throwing the whole
burden of taxation upon real estate rs unfair
aad leaves large amount of wealth nntaxeu,
while neople in the cities using capital IN
manufacturing and trade are tavorably DIS
nosed to a system that would relieve values
so EMPLOYED from direct assessment and
make real estate the sole basis OF. taxation
for local purposes. But these differences
need not be a serious obstacle to tax reform
ifthe State revenues can be obtained from
other sources than the direct assessment OF
private property, real or personal.
II would then become question merely
of raising revenue for local purposes. and 1t
does not concern the farmers of the tennessee
Valley how this may be done IN the city oil
New York. and he people of the city OF New
York need not care how 1t IS done Ill o.
Lawrence county. There is ,herei ore, no
reason why taxes for local purposes shouid
not be derived wholly from real estate IN u
community WHOSE itullit anu NV 's"'''
that administer their affairs are favorable to
tha, MAN. and it may be safely left to the
community that prefers that method to assess
LorL real estate and personal property for
public purposes Insufficient support cannot
be obtained for n change in the law that would
abolish the assessment OF personal property
throughout the State, there is no reason why
provision should not be made for having the
,mestion determined by each taxing commnn-
tv FIR itself AS far as taxation for its own
local purposes is concerned. A system OF
cable. II any part of the taxes for State pur
poses continues to he derived from assess.
ments upon property in individual hands, it
can be levied separately from the local taxes
according to the requirements OF the STATE
law. but it woud be great advantage II the
general assessment of personal properly e""'u
be entirely done away with.