The times. [volume] (Richmond, Va.) 1890-1903, 1902-02-27
Ill: Taxation Ordinance.

Editor Of The Times:
Sir,-The Constitutional Convention
should not lose sight of tho fact that
the State, no less than the church, il
>,lvlne institution.
If VIC must follow the injunctions of the
scripturcand BE hjectt to the powers that
be- if the State wishes to command the
repect confidence and loving obedience
of its citizens, it must not only protect
the weak against the agsrcssions OF the
strong, but it must do equity and admin
lister Justice in the distribution OF the
burdens and benefits of government
Ours is a government of public opinion
Hence ineQuitable and unjust laws cannot
be enforced. God has implanted these
fundamental principles of his own gov
crnment SO deeply in the heart Of man
that he knows instinctiyely his rights
and interest and cannot be deceived in
matters which are vital. 1t seems to be
inherent III all governments to grant
special privileges and exemptions to those
Who are able to demand them and put
TIL, heaviest burdens upon those who are
ur.abIe to resist them Hence evasion,
CO.. ocamcnt and false swearing in the
pa! ment Of inequitaple taxes.
= If corporations who exercise the
sovereign right of taxation and count
their income by millions are exempted
from an income tax, as is proposed in the
ordinance submitted by the committee,
and private citizens are requested to pay
u tax upon all income over $500, do you
think the balance will be right adjust
ed?" If a franchise tax of l per cent.
on gross income cXemptS the capital
stock of a corporation from any other
tax, and if the bonds of a. corporation
are exempted from taxation by reason of
the fact that the road bed, real estate.
rolling stock and other tangible property
is taxed like that of natural persons, why
compel the mortGagor and mortgage
both to pay taxes upon the same real cs-
tate without exemption or abatement?
5. Why not adopt the English law
which compels the borrower to pay all
such taxes and requires that he shall de-
duct the amount of such taxes from the
interest paid TO the holder of the mort
sage. California adopts the same plan,
While Massachusetts requires that there
shall be an agreement between the par
ties at the time the loan is made as to
who shall pay the tax. In each case the
State secures the revenue and the temp
tation TO perjury is removed, as we'll as
double taxation avoided. Was this taxa
ton ordinance, SO artistically drawn, the
wcrk Of a corporation lawyer? Why
guard SO carefully these artificial persons
and leave natural persons to be taxed
double? Is not equality equity?
!. But I must confess my disappoint-
ment and surprise that the learned and
excellent gentlemen who compose the
Committee on Taxation and Finance
should have fallen back into the same
old ruts we have been staggering along i.
for a generation. In these latter twenti-
eth century days, when we see such i'm
provement everywhere, especially in the
science of government, since the United
States has become a world power I did
expect the Mother of States and OF
Statesmen to give US an up-to-date Con-
stitution, Primary and fundamental to an
euuitable system of taxation is a clear,
well defined and just system of assess
ment The real and personal property OF
natural persons is to be assessed every
five wears for taxation at its fair market
value But there is no rule given for the
assessment and valuation OF the property
of corporations. That important duty,
the Board of Public Works having been
abolished will now be turned over to the
CORPORATION Commission. A franchise
tax of one per cent. on gross income viii
he imposed in lieu of a tax upon capital
stock. but what rule is given or principle
laid down as a basis for estimating the
value OF the road bed, rolling stock, real