The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-12-02


greater part do not come to the assessor s
attention. This is not the only way in
which the burdens of taxation in North
Carolina fall more heavily on the small
property owner According TO a recent
report of the State Auditor over so per
cent of the taxpayers pay tax on less
than $500 of real and personal property
Mr. j. H. Hollander in his Studies in
state Taxation" in his criticism of the
poll tax in North Carolina clearly shows
that property owner with $500 worth OF
property paying a property tax OF one
and two thirds per cent and a poll tax
OF say $500, pays in the aggregate
$40, or three and one-third per cent
while a property owner with 10000
worth of property paying at the same
rate and the same poll tax pays a rate
only slightly above one and two thirds
This shows the inequality of the poll tax.
The richer man does not feel it while
upon the small property owner ii is a
veritable encumbrance. If taxation is to
be just, the poll tax and the general
property tax must be supplemented by
some tax which will fall more heavily
on the wealthier citizen, and those whose
property is such that it can easily be con-
cealed from the assessor.
This tax in my opinion is a graduated
tax on all incomes and tax on inheri
tances, properly adjusted according to
the value Of the estate and according
to the degree OF affinity subsisting be-
tween the intestate and his devisee. The
first would conduce to just distribution
of the public burdens as it would be CON
fined mainly to the wealthy or well-to-
do classes, which constitute but small
proportion OF the total population and
equalize the disproportionate burdens of
the poll tax and the other would exact
tribute from personal property as it pass
ed in a steady stream through the pro-
bate courts and at q time when it would
be least felt, and in such a way that it
could not be evaded.
The suggestions | would make would
then call for such changes in our funda-
mental laws as would permit personal
property to be exempt from all taxation
for local purposes. The Connecticut Spe-
cial Tax Commission in its report recon-
mending the striking out all items of per-
sonal property truly said: "No system of
tax laws can ever reach directly the
great mass of intangible property 1t is
not to be seen, and its possession, If not
voluntarily disclosed, can in most cases
be only the subject OF conjecture. AS
the law stands, ii may be a burden on
the conscience of the many, but it is a
burden on the property OF tho few, not
because there are few who ought TO pay
but because there are few who can be
made TO pay 1t could then become
the special subject of State taxation
through the income and inheritance
taxes.
The next change would be the reega-
tion OF real estate for taxation to coun-
ties and municipalities. The use of the
real estate tax for anything but local rev.
enues can never be anything but unsatis-
factory and unfair because of the utter
impossibility OF fair comparative vaua-
tions This would not result in any in
crease of burden upon real estate as the
attraction of new capital would react
upon it's value and the exemption of per-
sonal property would inevitably lead to
added security and profit in business
These changes being made, the way would
be clear for the adoption of a just sys-
TEN of corporation taxes for State pur-
poses alone
But none the less necessary than these
changes are reforms needed in the as
sessment laws of the State-or at least
of Harvard University in recent essay
on municipal government has this to say:
ITO deal wisely with public taxation in
the face of rapid and progressive changes
in business ana social conditions requires
on the part of the tax officials exact
knowledge, sound judgment, wide expe-
rience and continuous service; in short
it requires highly trained experts serv-
ing the public on independent tenures for
long terms" This is the secret of the
success of the English Income Tax. The
officers who have charge of the admins
tration OF this tax are, as Prof Hill
states in his Study of the English In
come Tax" a well organized body of
trained and experienced officials who have
been selected solely with reference to
their fitness for the work required of
them and are secure in their tenure Of
office.
recent disclosures in North Carolina
plainly SHOW that here is he most obyi-
Gus chance for immediate tax reform.
Laws should be passed making it a penal
offence 10 Intentionally assess propertv
below its selling price. As il is now an
assessor in a great many communities re-
CARDS himself as selected to represent
the interests Of his district and so un-
dervalues the property in his district to
Offset the undervaluations which he be-
lieves exist in other districts In North
Carolina the valuation OF personal prop
orty is about one half the value of real
estate. While the actual value of per-
sonal property is conceded to be as great
as real estate yet this proportion of as
sessed personal property in North Caro-
lima Is much greater than in other States
CT than the average in the United States.
We are convinced that this not on account
of the greater proportion Of personal
property assessed but on account Of the
differentiation of real estate. / do not
see how the case can be stated more
clearly than by quoting the words Of
Chief Justice Ryan, of Wisconsin, as
printed in the report OF the Wisconsin
Tax Commission. "tt was intimatcd as
IL has been on other occasions. that the
statutory rule OF assessment Is frequently
or generally disregarded by assessors,
and that the consequence of holding as
SCISSORS to compliance with their duties
under the statute and the constitution
would be disastrous If ii be true that
assessments are frequently made in de-
nance OF the statutory rule, it appears TO
J(fA IL.