New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-10
TAXES AND TAXATION.


in regard to the tax laws OF the State. He says in
his opening paragraph that the present laws are
replete with Inconsistencies and that they do not
distribute the burden of taxation fairly or justly
among the taxpayers. He points out that while it
is conceded that personal property is greater in
value in the State than real property, yet real
property stands seven times much taxation as
personal. He demonstrates by citing instance
in which piece of real estate showed a practical
loss the investment and continues:
This is no exaggerated statement of the desperate
condition which real estate in the interior cities is
in at the present time 1t will hardly pay carry
worthless for investment purposes. Should the di-
would lift about $1i 100000 year from the over
6urdened back OF real estate, which would be a
But the question which presents itself in this
connection is: Can the direct tax be abandoned and
Ine NECESSARY FUNDS LOT support OF goYernment be
proXlaedE AFTER SIX years experience in the Con
this subject careful thought, am prepared to say
ures are resorted TO- Pennsylvania and New-Jersey
support their State governments without direct
vastly greater than those of either Pennsylvania
or New-Jersey. In my opinion. the needed in
tanned by more equitable distribution of the bur
the tax upon noW AMY taRed AS aread
stated. the additional amount needed for the sug-
gesteu plan IS $ilOOO,OO0, in round numbers The
State Of PENNSYLVANIA. with less taxable property
indirect tax of about 81 900 annua1lg T6e ex
the gures $13 IL Th GF % Smo9nt
reached
New-York assessors.
WOULD MAKE CORPORATIONS PAY.
While MI. Morgan shows by his figures that the
receipts from corporations greater by $1O4 coo
than in the preceding year he still believes that
a great deal more money be obtained from
corporations without unduly increasing the bur-
den, by an intelligent revision Of the laws He says
that the trend of legislation in this State of late
has been to discourage instead of to encour-
age the collection of corporation taxes. and to-
gether with defective and ambiguous legislation
upon which the have given adverse decisions
1T has made serious inroad into the corporation
| tax list. One decision in particular was pointed
out as being very damaging. 1t TO the effect
that foreign capital might be invested yet not
employed and if not employed It could not be
taxed. Continuing, he says:
AS a matter OF fact. it is hard to see from the
tax assessors point of view why a non-manufact-
uring company employing a certain number of
hands should be freely taxed while manufact-
uring company employing a like number Of hands
goes free The one class OF companies enjoys
bear least reasonable share of the of such
Another defect in our corporation tax laws is the
into the State treasury to be exempt locally from
al taxation upon personal property for state Pur-
owner and the rent payer Large numbers of cor
the payment Of just taxes under this provision
II is suggested that every company Incorporated
under the laws of New-Yorll, regardless of the
business il is engaged in except those having the
or pubic places (VlZ. qQaSl-puDic corporations
such gas. water electric light, heat power.
transportation. transmission and generally speak
ing such companies now taxed upon gross
earnings. should be taxed upon their authorized
capital at low rate, which rate should be in
creased as dividends increase. Every foreign cor
poration. matter what its business, should be
taxed for the privilege of doing business in this
State upon the amount of capital employed or in
vested or held here at the same rate as domestic
companies.
REDUCTION OF ORGANIZATION TAX
Mr. Morgan believes that the organization tax in
this State of one-eighth OF per Is very much
too high compared with New-Jersey, which only
charges one-iftieth of per cent. and he also be-
eves that the liability Of directors is equally oner-
Gus. and often prevents wealthy men from becom-
ing directors of large corporations. On these lines
he says:
II evidence in addition that already noted Is
needed to emphasize the points made some NAV be
found in the following figures: Under the laws of
NeW-Jersey in 1899 there Incorporated g2s
companies. During the same period under the laws
of this State 1887 companies were incorporated
The organization tax collected in New-JerseY
amounted TO s72s.OOO and the amount from the