The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1899-01-31


of state Taxation and the Burden to
be Put Upon Inheritance TO the Dis
inheritance of Distant COllaterals
and on Corporations
(Raleigh Post.l
Editor Post:
In a recent issue you made some refer
ence to suggestions made by me to the
finance committee Of the house of rep
resentatives in regard to taxation.
With your permission l viii try to ex-
plain more fully my proposition to re-
form our present cumbersome and in
efficient revenue law.
Mr.. Richard Ely in his work a.
alton in American Cities and Towns"
remarks that lone who would frame a
rational system Of taxation will en-
deavor to find taxes which cannot
we'll be lodged, and will avoid a tax
like our present personal property tax
which Is regressive, increasing the rela-
tive burden as strength to bear it de-
~creases."
e. lAC CdIuludl Pol1to lho4oSOu oPSh ~
all writers who advocate a rational sys-
tenn of taxation are that taxation should
be certain in it's amount, in the time
of payment and in the manner of pay
ment, in the convenience Of payment to
tax payers and in economy Of admins
tration.
Another fundamental principle seems
to be that as few things as possible
should be taxed and that when select
ing objects for taxation the slightest
interference possible should be made
with business and professional pursuits.
by this 1t is meant that when there
is opportunity to exempt certain prop
erty from taxation without violating
any other principle of taxation, it is
desirable to do so. 1t has been shown
by experience that, without considering
the question Of p~rotectionisn1, income
from imported articles can as easily and
as equitably be raised on a dozen ar
ticles as on a thousand. This wonder
fully simpilfes administration and
abolishes to a great degree government
interference into private affairs.
The dominant idea with all later
writers on this subject is the urgent
necessity for the exemption Of real es-
tate from state taxation. The reasons
given for this are to my mind sound
and powerful. The inequality in the
assessed value of real estate is known
Of all men.
Henry c.. Adams in 1.-The Science of
Finance" writes as follows, referring
to the inequalities between the several
grades of government: THE general
property tax works an injustice as be-
tween the several grades Of govern
ment. The assessors are commonly
local officers dependent for their places
upon the suffrage of those whose prop
erty they assess, and since these as
sessments are taken as the basis Of
county and state taxes, a strong temp
tation is presented to each assessor to
value the property in his county as low
as possible in order that it may not be
charged with an unduly large proper
ton of state taxes. The fact of under
valuation considered by itself is of rela-
lively slight Importance, since for a
given expenditure, it's only result is to
raise the rate at which property is tax
ed. The evil of which complaint is
made lies in the inequality of valuation
when accepted as the basis of county
luu OIul IdASo' Z - VoJ y
of overcoming this difficulty, the
method adopted by most of the states
being to establish boards of equaliza-
ton. The county board equaliZes the
assessments between the townships and
the state board performs a correspond
ing service for the counties. This at
best is a bungling piece of administra-
tive machinery. The members of these
l~z.Iz - 1-.1- Laxy4 90 nathalie Iofa
at their command except such as are
furnished by the local assessors them
selves. AS a matter of fact they COM
monty accept the lowest assessment as
the basis and scale down the valuation
until the complaints of interested par
ties are somewhat Modified"
The solution of the difficulty lies in
the suggestion that the several grades of
government be separated for the pur-
pose of taxation and that each-grade
be given a source of revenue exclusive
1y it's own.
If such a change is feasible there will
be no further need of boards of equali-
cation for inequalities in the assess
ments will work no injustice. One
county might value it's property at Is
per cent, and another at Is per cent.
of it's true market value and the result
would be that the rate of county taxa
tion would be three times as high in
the former as in the latter.
This recommendation that real estate
be exempted from all taxation for state
purposes is>in line with a tendency in
a number of states which have taken
the matter of tax reform under serious
consideration. Delaware, Pennsylvania
and Vermont levy no state tax on real
estate, while Wisconsin and other
states contemplate such action in the
near future.
1t being impossible to elaborate
fully in an article Of this sort, the ques-
ton next arises as to the sources of
state revenue. Following the line of
reasoning adopted by recent writer's, it
would be necessary, in order to pre-
serve the equality of taxation ON all
property required by the constitution,