The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-10
Taxation in NJ issachusetts.

In 1896 Governor WoLCoTT of Massachu-
Betts appointed a special commission of five
to investigate taxation in that State. The
best-known members of the commission
are Judge DUNBAR, Prof. TAUssIG of Har-
ward College, and MIR. THOMAS JEFFERSON
COOLIDGE, sometime Minister to France.
These and one other member have brought
In a majority report, which is a rather sim
gular document. OF their recommendations
we shall mention here only the following:
IAN Inheritance tax levied with respect to realty
n well as to personally at the rate OF 8 per cent,
with an exemption for estates not exceeding | 5000
and an abatement OF s.. 1000 on estates between &c..
600 and $4,000. The revenue from this tax to he
distributed from the State Treasury among the sew.
eral cities and owns. one'half In proportion TO popu.
lation. one. half in proportion to assessed valuation.
"A tax in proportion to house rentals; only the ex.
cess over $500 Of rental being taxable.
THE abolition OF the taxes on intangible person.
atty, such as stocks, bonds, mortgage loans, and In.
come"
This abolition part can be commended.
ave think" say the majority of the COM
mission. 1.-THE extension Of the inheritance
tax to realty especially desirable, because
1t brings about substantial taxation on the
well-to-do and the rich, and so secures q
'N'N'A 80 VI III piiuth Vi ldAd-
ton" Both in the proposal for the extern
sion of The Inheritance tax to realty and in
the proposal for a tax on house rentals
the Commissioners show by the exemptions
that their theory Of taxation does not aim
at equal taxation, but at the unequal taxa
tion of the well TODD. They do not, in
deed, favor a graduated tax, but they do
propose TO exempt the great majority of
owners of realty and of hirers of houses.
The Commissioners admit that doubt
less there are possibilities of evasion" but
they believe that an inheritance tax of 5
per cent. will yield 81, 800, 900 a year.
Possibly the rich and wcll-to-do of Massa.
chusetts love to have their estates sliced off
to the extent of a twentieth.
The tax on house rentals seems designed,
In part, as an apology to Boston and the
other hig towns which the Commissioners
sacrifice TO the country districts. The Com
missioners estimate hat the rentals tax in
Ward Eleven in Boston will yield $500.
. Il year; that "thc financial loss of Bos.
ton from other sections OF the report would
be fully made up !" that Newton, Brookline,
Cambridge, and so on would get q good
revenue, and that the "summer resort
towns" at which rich Bostonians nave been
living and paying taxes on Intangible per-
sonalty," would also get some compensa.
ton from the rentals tax. 1t will be in.
teresting TO see how the cities n summer
resort towns receive the suggestion. Let
us hear the Commissioners set forth this
part oi their scheme:
ave propose that \ tax shall he levied on all persona
Occupying dwellings of an annual rental OF more than
lAlD Al tha PM rs IN IA uDpt IN tha 90,
.si 'aIce over that sum. We propose to levy 10 tax
or this sort on persons WHOSE incomes are so Eoder.
ate that their expenditure for dwelling accomIavds.
tionS Is not over $500 a year.
Those whose income Is such that they exceed this
expenditure for their dwelling arc to puy. not In pro.
portion to their total dwelling reuta but I'm propor.
uon TO tho excess OF rental over the exempted limit
OF $500.
'ThuS a person occupying q house whose rental
value was 5000 would pay a tax OF SlO a year. this
being 10 per cent. GU the eSceSs OF the rental value
over $500. A person occupying = house whose rental
value was 5000 would pay q tax OF SEQ; a house OF
$500 rental. $40; a house OF l.g00 rental. ESQ. and
SO on. The tax. II will 10 observed. 10 on tho orcu.
pier of = dwelling and o! adwelliuG only. Houses or
parts OF houses used for business purposes are In no
way affected by II,
1.-The tax Is to be levied upan the occnplsr whether
he be owuer or teIant. II owner. Il Is = tax on hi,
general income, additional to tho direct tax which
he pays us owner OF the house. II tenant. II Is again
AtaI upon his general Income separate from the d..
rest tax which the landlord pays on the house. In
either case. II Is a tar on presumed or estimated In.
come. propOrtioned Din the manner descrlbedJ to tho
expenditure for dwelling accommodates.
at 10 clear, almost Impossible OF evasion. easy or
admInlstration. well htted to yield . revenue for
local uses. and certain to yield such revenue; It is
Alsar. because the rental value OF = house IL compare.
lively easy 10 ~aGcertAin. The tax Il baSed Oh . part
VI mEaS Anairs which he publishes TO al tho world.