Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-04-14
The Tax Problem
i;tor Of The Evening Star:


The authors Of the personal tax bill in
carefully avoiding mortgage taxation, or
Indebtedness, or anything like double tax
alton, have shown clearer vision in po-
Ntlcal economy than is general in this
country, and so 1t Is to be regretted that
their zest to raise additional revenue
should have blinded them somewhat to
the character Of the proposed legislation.
political economists have always held that
a fair and uniform tax on realty fairly val
ued was one of the best forms of taxation,
and it is wholly comprehensive, as each
then pays, If not according to his property.
at least as to his living and what he gets
out Of life, since such tax enters into all
his expenses and employ ments
Now, the committee, in order to get more
out Of the District tax. in the first place
assess household possessions. Such a tax
inquisitorial in its nature is wholly I'M
American; 1t was rebellion against tax
on the home table that made the United
States. Now tax on the table Itself and
the dining room and everything that there
in it. will not, even in this day, be well
come. Secondly, 1t is wholly unnecessary
involving useless red tape, and of the ma
ture Of getting over the fence by your
boot straps 1t is safe to say that In every
household the goods run from 10 to 20 per
cent Of the value of the home being less
as 1t increases until except in the few
cases of the big rich, where the possessions
may bear a larger ratio. We have been
going on the basis of assessing the resi-
dence A; now the bill says we must go in
side and assess plus X. Now, as X is
always, say, 40 A, it is not vain thing
Why all this bother and certain annoyance
to spread a certain tax. not on A, but on A
and lilo, and reach exactly practically the
same result as to each holding, whether 1t
be called A or l 40 A? They allow $3.50
fnr al inst tr
against 5000 for all other goods-a sugges-
ton of musical appreciation hardly due US
as a people. What was in mind was evil
IDENTIFY that every American household Is
entitled to a piano. Then, most un-Ameri-
can-like. they say, but If you go one
better than $3.50 we tax you" That is
not tax, but a penalty. 1t is not tax
alton, but penaization. If we have music
in our souls and the spirit Of our fathers a
man will prefer a jewsharp to his chattel
tax. do not know whether the window tax
was federal or state, but have seen houses
that were then built. If people thus mortified
the outside construction of their homes under
the lash of penalty tax, what may result
when everything, including the family por-
traits. Is a thorn on the insideP Even the
pictures Of the rich are hardly property in
a taxing sense. They are surely unpro-
ductive except Of pleasure to them. their
friends and sometimes the public, and
merely represent denial on their part Of the
usufruct of money to the artistic or other
sense.
Next though 1t is quite proper to assess
the capital of banks further considera-
ticn should be given as to doing upon
surplus and individual profits, which is
likewise penalty tax tending to weaken
the bank from the point of view of the
public interest, much as did the window
tax. Such surplus and unused profits are
merely an insurance fund against unex-
pected losses, preventing failure and con-
sequent loss to the community, for which
the banker deprives himself Of the usu-
fruct and enjoyment. That Is what "un-
divided" means. 1t Is not personal yet. The
science of successful banking Is SO to con-
duct the business that the sum of the losses
shall be less than the sum Of the profits.
Query: Should we penalize those who safe
guard against those losses that are neces-
sarily incident to that business?
Surprise Is also expressed in the report
that suburban and speculative property Is
not assessed other than now. The present
practice here. 1 think. obtains elsewhere.
Unless we are to adopt the Henry George
principle 1t must be. To assess upon the
basis suggested or upon the selling price
Of an odd lot or 30. is not taxation, but
confscation, such as George sought. Such
unproductive land has got to be considered
as such or as agricultural land, which 1t
seldom equals in producing income. Such
are generally taken up and developed by
the sanguine and energetic to the benefit
Of the District. But whatever the indi-
vidual luck or acumen, as a whole. even
assessed as now1 they bring back to the
holder or Spectator little more than what
he put in, interest, taxes and improve
ments. and whatever the profit it Is no
more than his brains and effort deserve in
recompense. Because one lot in one hun
dred brings in ten times the value of its
present assessment. Is no proof the ninety
nine will bring that until interest, taxes,
ETC.. have figured up to a like sum.
We must allow discretion in the local
authorities to the assessors as we'll as the
public. In such matters as taxation most
any system is preferable to a change of
system When that IL desirable 1t should
be most carefully considered, and only
adopted when meritorious. The committee
is competent and should be aided, and may
find such merit in systems in vogue else
where than among their constituents at
home. POLITICAL ECONOMY.