The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1898-03-09
The Obligations Of Wealth. Evasion Of
Taxes.

Ex-President Harrison, speaking at
the Union League Clubs celebration
of Washington's birthday in Chicago,
took the ground that evasion of taxes
by wealth is at the root of evils in this
republic, and he urged just taxation on
personal property as a remedy. Sub
joined are some pertinent extracts from
the ex-Presidents forceful address:
"For very many years an opinion has
been prevalent that the great bulk of
the personal property of the States, es-
pecially of the class denominated 'se.
curities,' including stocks, bonds, notes,
mortgages, and such like, has escaped
taxation. The evil seems to have
been progressing until, in some of our
great centers of population and wealth,
these forms of personal property seem
to be almost eliminated from the tax
list. In New York State the proportion
of personal property assessed for taxa
ton is only about IL per cent. of the
total amount of property taxed. Yet
Controller Roberts, of that state, ex-
pressed the opinion that the taxable
personal property owned in the State is
at least equal to the amount Of real es-
tate. Illinois and many other States
present the same condition, differing
only in degree.
cit is easy TO see how this offense
against patriotism has grown to such
proportions. The very sense that in
equality is injustice has promoted it.
One man sees that his neighbor is not
making conscientious tax return, and
that if he returns his property hon.
estly he will pay disproportionately.
The result is that his conscience finds
salve in the saying, Everybody does
it, 80
"The most serious aspect of this state
Of things is the injury which results to
those who practice these fraudulent
evasions. The man whe is robbed has
not lost his character or self respect,
but the other man has lost both. Taxes
are debt of the highest obligation, and
no casuist can draw sound moral dis
tinction between the man who hides
his property, or makes a false return,
in order to escape the payment of his
debt to the State, and the man who con-
ceals his property from his private cred
itors. Nor should it be more difficult
to follow the defaulter in the one case
than in the other. If our taxes were
farmed out to an individual or to cor
poration, they would be collected as
fully as private debts are now collected.
There would be vigilant and unrelent-
ing pursuit. The civil and criminal
processes of the law would be invoked
with effect, just as they were against
fraudulent debtors under the bankrupt
law. 80 Mr.. Lincoln's startling de-
claration that this country could not
continue to exist half slave and half
free, may be paraphased today by say
ing that this country cannot continue
to exist half-taxed and half-free. This
sense of inequality breathes fierce and
unmeasuring anger-creates classes, in
tensifies social differences, and makes
men willing to pay their debts in half
dollars. The just sacredness Of these
money obligations, the rights of the
holders to be paid in money of full
value, will be clearer to these angry
men if they see that these securities are
paying fully their lawful taxes.
"Where is the moral distinction be-
tween the act of putting ones hand in
his neighbours pocket and clandestinely
abstracting his .pocket-book, and the
fraudulent shifting of debt that owe
to another?
eff there is not enough public virtue
left in our communities to make tax
frauds dscreditable, if there is not vir-
ility enough left in our laws and the adj
ministration of justice in our courts to
bring to punishment those who defraud
the State and their neighbors, if crimes
of fraud may stalk unrebuked and un-
punished in our streets, how long will it
be until crimes of violence make inse-
cure the fortunes that have refused to
contribute ratably to the cost of main
tanning social order? The failures
which have accompanied, in an increas-
ed ratio, the attempt to collect the per-
sonal property tax have led many tax
refOrmers to favor it's total abolition
and the substitution of other forms Of
taxation. The failure of the wealthy
holders of these intangible securities to
pay their just proportion of the cost of
government, has stimulated demand
for special forms of taxation and for
progressive taxation, with view in
some measure to recoup to the COM
munity the losses which are inflicted
by evasive or fraudulent tax returns.
These efforts should serve as q warn
ing. The people will not consent that
this state of things shall be accepted as
permanent condition. If we are to
leave no taxes save such as in their ma
ture necessarily exclude concealment
and bribery, what tax will remain9 If
we admit the disgraceful conclusion
that the state Of public and private NOR
ais has become such in orr country that
the wealthy may not be brought under
the law and compelled to yield it rever-
ence and obedience, have we not con-
fessed the failure of republican institu-
tions 2"
The tax upon imports was confded
wholly to the federal government by
the Constitution, since experience had
shown thatlthe separate States in COM
petition practically nullified the power
to levy imports. State tax laws suffer
similarly by reason of real or simulated
change of residence. vet federal con-