The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-02-25
TAXATION.

Tho Georgia legislature has recently
enacted the listing system of taxation.
1t is proposed that every owner of prop
erty shall annually prepare an inventory
Of his possessions, swear to it and de-
liver it to the tax assessors for their guild
ance in fixing the assessment of his taxes.
If he neglects to do this any assessment
the assessors may make from their own
knowledge is to be doubled and if he re-
fuses to do it on demand he is to be deemed
guilty of misdemeanor and punished ac-
cordingly. This inquisitorial system of
taxation, enactment Of which 70 now
threatened in several states, has been in
existence in Vermont for twelve years
with fairly good results, but in states like
New York or New Jersey it is quite prob
able that the majority would defy or evade
it. The New York Sun holds that the
only valid argument for the passage of
such a tax law is that it would bring out
more plainly than existing laws the folly
of trying to tax personal property at ali
and would help on the needed reform of
putting all taxation upon real property.
On this point the Sun once said:
What 10 called personal property Is, mostly,
nothing but interest in real property in this
state or in other states. Holders of mortgages
are, to the amounts owing them. joint owners
with the makers OF the mortgage in the land
mortgsged. Shareholders in railroad compa-
mics. in manufacturing companies, and in other
corporations have nothing but rights to divi-
dends earned by investments which are for the
most part composed OF land and buildings.
Money lent AMI credits given are in the same
way represented by the property OF the debtors,
aud this, too, 10 chiefly land or Improvements
affixed to land. The only personal property
which 1t 10 reasonable to tax at all IL composed
oil merchandise and Of household goods, and the
value of these 10 comparatively unimportant.
A single tax upon land and its Improvements Ia
easily laid and cheaply collected, and would
furnish all the money needed for public pur.
poses without being oppressive.
inequality is one Of the gross defects Of
the tax system in America. The total
amount to be raised by the state is appor-
toned to the various counties according
to the appraised valuation in each. The
final rate of taxation is obtained by add
ing the local tax to the state tax. The
rate of taxation would therefore vary only
with the local needs if property were
everywhere assessed uniformly. In theory
the law expects that property will be as
sessed at its ''fair cash value" and that
the valuation shall everywhere be made at
a uniform rate, but in practice nothing Of
the sort takes place. for in scarcely any
two counties is the property. real or per-
sonal, appraised in the same manner or at
the same rate. The official reports of tho
several states are full of complaints that
assessors follow local usage, or personal
caprice in practice, and in consequence
property is assessed all the way from par
to one-twenty-fifth of its value. Boards
OF equalization are of little avail. for they
include too many liars and local schemers
to accomplish any reform.
Personal property not only nowhere
bears its full proportion of taxation, but
the more it increases the less it pays. In
tangible property is easily concealed from
a sand-blind assessor, and tangible prop
erty. in the shape of stock in trade, is ex-
empted, since to assess the merchants
capital in large cities would only make it
take wings to q more favored locality. Tho
territorial auditor Of Washington. in his
report TO the legislative assembly in 1887,
said that if true valuation could be
reached it is 'clear and incontestable that
the wealth Of the territory in personal
property. for the purpose of taxation,
would largely predominant over that of
real estate" If this was true of commu-
mites like Washington the relative pro-
portion of personal property must be far
greater in the great commercial states of
the East. In New York state the actual
value of the personal property legally
liable to taxation exceeds that Of the real
estate. and yet realty pays more than nine
tenths and personal less than one-tenth.
An able American political economist de-
scribes the situation when he says: in
the middle ages whole classes were ex-
empt by express provision OF the laws. In
our time and country whole classes are
exempt by the inevitable working of the
law"
Any attempt to enforce the taxation Of
personality by more rigid methods is met
by universal evasion and deception. Cn-
der our system imported merchandise in
the original package. United States bonds,
notes, checks and certificates, property in
transit, goods produced in another state
sent on commission. deposits in savings
banks, etc, are exempt from taxation.
Into these classes the taxpayer semporar-
lily commits his property. and the New
York court of appeals has held that the
assessors were bound by a transaction
which the court itself declared to be "a
device 10 escape taxation" In states
where the law requires the taxpayer 10
make out list OF all his property aud
make oath to 1t perjury is common. Men
who are naturally disposed 10 pay their
just tax become demoralixed at the spec
tac!e Of wholesale tax evasion, and rather
than tax themselves for other mems ihefis
become thieves themselves
The so-called tax on personal property
has been .orcioly described as a tax upon
ignorance and honesty, since its imposi.
ton was respected only by those ignoran.
of the means Of evasion or too honorable
20 resort 20 them. The tax commissions
Of several states agree IN saying tha, the
payment Of tax on personally is no more
seriously treated than \ voluntary obl;ca.
tion 20 contribute donations 10 the local
church or Sunday school. The system Of