The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1895-05-18

/ fellow citizens who ~ wrongtullv suffer bv
the existing system Farmers owners of
/ the homes and visible property and the
merchants are the burden bearer, of the
| rest Of the community have not refer
| red tn the inequality Of assessed values.
which l. great and unjust. 1t may be
proper to consider more in detail those who
escape these burdens
GoRPuR ATIuNS ESCAPE.
First as to corporations am nn enemy
of corporations think much good Is ac-
I cnmpiished by the aggregation Of wealth in
I these artificial creations. when their power
( Is properly guarded and they contribute
/ their proper share of taxes The corpora
/ ton has >omethin. which Ne call . tirs-
/ cLisc, which the natural person never has
I For thi, privilege all writers on economic
/ principles hold that it l. right thar they
I should pay more taxes than the natural
E person. However proper this may be,
/ do not ask aud have never asked that this
should be- done The demand Is that they
pay 81 Ls,d what the natural person pays.
If thi, i done. there will he afforded an
immense relief To the overbnrleued masses
I Il j. true that therc are many corporations
which do pay their full share Of taxes
tine notable example l. the National Banks.
They pay eyery cent they ri.h,tully should
pay Il va, amusing 4" lind that the
Clearing House Of Banks in Baltimore un-
der. was told the manipulation and
management m certain gentlemen who
cared ls->- for the Banks and mere for them
selves - owner~ If stocks aud bonds pass
ed in lS92 a resolution cnudemniug the
Senate Assessment hill aud calling nn t;ov.
Brown to veto it Such Ignorance If the
henescial result, {" the Banks Of the bill
Of Sa2 ur any other bill which brought
intn the basis all property was amusing.
That biil did no, require these bank, to pay
one cent more taNe- but actually le>seued
the taxe~ they did pay hy increasing the
taxable basis
Ne better rule inr taxation ii curpnra
rions can h. found than t. take the pr,.duc
ia. capital ~ the ha~i. "g taxin. them
In lscertainin. the value 81 this w"rkin.
OF producing capital il can he easily dome
either hy cspitalinn. their net incume or
taking the market value ii bonded and
steak indebtedness Having found this
value then make II the basis - taxation
Apply the ,nvren, rate ,o thi, a~certained
,alne This j. the rule fiilnwed With
natural per~on> ia ~"mr ,.,-c> uulustly
whrrc cncr..y and managerial ability alone
j. the thing taxei
spCk> A~B Ru>I.> HfuE
[, i a fact in Maryland ,,day tha, for
sign ,tok- aud all ht',,l, pay an iu>i.ni6
can, par 81 the taN,- Thi, /, shown IN
man, Ws,.. bat anr l. hy the fact thar
whcn wealthy men lie their inventories,
which are 6lci Ia the Orphans Court hy
their execWors show hn. h>t~ If -t"ck~
and t-,u,l, and often nome ci them appear
ou the tax -took, That ,hes form she
wealth If the individual and under the
Constitution should be taxed can hc an
"I~n question That saPitsl would b.
driven away Il this form 1T property was
wisely and iudicin,tsly taxed = wjih"u, q
Iauicls At foundation Thi. + slways said
Whenever In the history II thi, State an
csorr has bccn ulade Ca pa-- a r.,~~s~>meut
law Il W. the chief stock ia trade If
ih,~r whu opposed rea>-s~>mrut in lS1G.
The plan which have alvsy, advocated
foE the taxation # this for1n If property
bas beeu me~t conservative Il l. sub
,iautialiy ~ r,llpw-
Stosks IT doms-1iy corporations. under
the admirable system now in operation in
MARYLAND arv al iaxed by the State tax
commissioner and the corporations pay the
,axcr. Nu change whatever + prvz~rd
!, Ia these >,oek. Il j. the bonds aud
>tucAs Il fDv,igA corporation, which escape.
The bond, II domestic corTan,,tuns csn be
al fairl, taxed Nihnui say difficulty
The plan which work. wen in other State
j. the following
Tax thee b-,ad, In the hands ct corpora
tipns The money from these bonds has
gone into che working capital II The cnr-
por,tiHB and ! . part Ut the pnslucing
investment k>oeFtain the net incpme oi
Ihc c'vporati,n and ,hen capitalize thi,
income and the capital winch produces this
inc,,nir l. the value which should control
in ascertaiuin- the taxable value oi the
corporation Ano,her plan Is to take the
market value Of hands and stack, of ear
p"ratiou,. add them together and make
this the thin. To- he taxed The bonds
should then he exempt in the hand, IT the
holders
This only leave, IL foreign boud, aud
-t"cks These should be taxed accorlin.
to their producing value that i, the Ia
terest they bear
Their interest being liked and n"s de
I pendent upon surrounding eondition> should
not have applied 10 them the same rate a,
other property, whose income varies ar-
eording 10 the tax rate \ per ceu;um of
their income should be the amount requir
ed To- be paid a. in Pennsylvania This
+ could be done in an indirect way and the
+ Fifteenth Article of the Constitution not
/ violated
The plan prnp-red a. to the taxation of
/ this form Of property was set nut in the
{ sealing SEXTON, Of the Act Of 1892 and
/ 1894, system well known in Maryland
and which was applied L" the State debt
/ when il was taxable
The tax on these foreign securities should
no, lie oppressive, but sufficiently low on
/ the income q, 70 make il an inducement
! for the holders 20 be honest and list their
/ foreign stocks and bonds Effective ma
chinery to find aud keep this form of prop
/ erty on the tax books i absolutely neees-
sary The listing feature is the method
successfully employed in other States To
/ keep this properly ON the basis. This Is
simply requiring the owners Of personal
property every year or every two ar four
years to make list of the same swear To
it and deliver it to proper tax officer.
I HAYES BILL.
/ The Senate assessment bill of 1892 and
| 1894 were both conservative measures.
| They were in all respects the assessment
! law which had been passed in 1876, with
the single exception of more perfect ma
chinery to reach and keep in the basis
personal property. These acts were
framed in accordance with the views |
have heretofore expressed, with the ad-