The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-10
CHAPTER III.
Taxation of Personal Property.

EVlAS.
No system of taxation now in force in
any of the states of this country is at
tended with wholly satisfactory results
The principles of equality and uniformity
so essential to every just revenue meas
ure are generally unattained. Whl!e ap
proximately attainable in the taxation OF
real property, they have little pracIleal
meaning in the taxation OF personal prop,
erty. Nor is the cause obscure. Real
nroperty has q fixed status and Is visible;
while personal property, in many OF It's
forms, is either invisible or easily con-
cealed. So universally is the evasion OF
the law in the assessment Of personal
property practised and so notorious Is the
fact that much greater volume OF II IS uh-
assessed, that its evasion is often re
gareded a virtue rather than vice IN
few If any states is more than rs per
centum of the personal property liable 10
taxation listed for assessment:
Tt necessarily results that in the en-
forcement of the law with respect to such
property, numerous instances OF gross
Injustice occur. So far as 1t is reached at
all, 1t belongs chiefly to banks, the es-
tates of descendants, insolvents, minors,
narsons, of small means and the
comparatively few who conscientiously list
their property.
It has Enthusiastically given rise to wide
spread immortality. Men OF unquestloneo
business integrity, not only find little diff
fculty in listing their property far below
it's real value, but also in making oatn 70
lists which they know to De raise.
IT is not surprising, then, that there
has arisen class Of economists VINO, ike
the late Henry George, denounce the tax
alton of personal property as vicious ana
advocate its complete abrogat1on.s
SOURCES OF EVILS.
II would not be just to say. that the
evasion of personal property taxation is
wholly due to the dishonesty OF the owners
Of that class of property. While 1t is ire
ouently effected by resort to methods
which are clearly in violation OF law.
one of the most fruitful causes OF the evl1
is the widely known fact that but small
percentage of personal property is listed
IF listing were the rule and evasion the
execution. the volume of personal prop
erty assessed would be greatly enhanced
by voluntary listing. There Is manifest
| ly a widespread and well-founded sent1-
ment that the law is itself unjust in its
attempt to subject certain classes OF per-
sonal property to taxation. NO law car
be successfully enforced which is repug-
nent to a peoples sense If justice.
It has long been the policy of this state
as we'll as of many other states. to- taz
mortgages and other forms of credit. Long
experience has demonstrated that such {
| law can at best be put lmperIectly en-
forced. Students of taxation, with scarce.
1v an exception, denounce it as fallacious
in principle and fruitful source Of i'm
morality. The taxation Of mortgage
when the subject Is itself taxed, is spe.
cies Of double taxation. This is 81
obvious that in California and one OF
more other states the attempt has beer
made to tax the mortgage as real estate
and relieve from taxation in an equival.
ent amount the property by which it il
secured. But such policy while avoid
ling the objection Of double taxation Meth
| er increases the volume Of asessable prop
erty nor benefits the mortgagor.
1t is the experience Of California thai
/ the enforcement of the law has been at
| tended with marked rise In the rates
Of interest. Not only do rates rise sufh.
GENTLY to meet the tax but they rise still
higher in order to guard the holder
against the extra hazard incident to thu
operation Of the law. It Is needless to ga!