Evening star., 1902-01-17


obtains, in addition to such other elements
as may enter into the selling price, an
amount for the goods he sells which Will re-
pay him for the tax and recoup him for the
expense of advancing 1t. II he cannot do
this he goes out Of business. In the last
analysis, therefore, this tax does not fall
upon the storekeeper, but upon the con-
sumer 1t becomes not a tax upon accumu-
lated wealth, but tax upon the necessi-
ties Of life, vitality affecting all classes Of
the community, and the poor In an inf
nltely greater degree than the wealthy.
Again. If it be sought to tax bonds and
money loaned, the holder of the bonds or
the lender of money does not pay the tax,
but either in the shape Of added commits
vfdes in advance for this payment by the
borrower Once more, 1t happens that the
necessitous pay the tax, while the wealthy
escape.
Double Tax.
20. A personal tax is always double
tax, sometimes obviously so, oftentimes not
SO generally recognized, but always Of the
same character. Some illustrations have
been given, and We may add the fol-
lowing: If man borrow $1,000 with which
to assist in purchasing a piece Oh real es-
tate worth $1,000, and IL he pay taxes upon
the value of the real estate, and also upon
the money borrowed, he would pay twice
upon the sum of 81 600 and total tax upon
a basis of 5000, when his actual posses
sions would be worth but $1,000. This IL
lustration is obvious and trite, but in a
larger though less obvious sense every per-
sonal tax is double tax. Real estate in
creases in value according to the oppor-
tunity it affords for the possession, preser-
walton and production of personal property.
Certain classes Of personal property are
produced and preserved to the largest pos
sible extent in this country on Wall street,
and there We find that the value of land,
reaches the highest possible point. The
same rule applies with relation to sites Of
fering the greatest facilities for manufac-
turing purposes; and, again, the residential
portions of our city, where personal prop
erty appropriate to the surroundings is
gathered together and enjoyed in the larg
est possible degree, because largely of such
fact, exceed in value all other properties
similarly used. If, therefore we tax both
the opportunity Of producing, preserving,
and enjoying wealth represented by per-
sonal property, and also the thing produc-
ed, preserved or enjoyed personal proper
ty), we are, in the truest and largest sense,
inficting double taxation.
Operates UnequaIIy.
&c. All personal property cannot be taxed,
and for this reason such a tax operates un-
equally. If mans property be invested in
government bonds they will escape taxa
ton, while other evidences Of ownership
may be taxed.
81. A personal tax may be evaded. 1t Is
common where a rigid enforcement Of per-
sonal property taxation Is attempted for
a man, the day before return is made,
to exchange other classes of securities for
government bonds, free from taxation, and
the day after his return Is handed in to
re-eXchange, placing himself upon his for
mer footing and contributing nothing to the
public revenues. The same government
bonds may be made to do duty many times
over.
IS. The direct effect of the personal tax
is to interfere with thrift and throttle in
duet trxv n q rf fa r IL
minish their production. To diminish pro-
duction is to lessen comfort and create
squalor.
80. The assessor can know little of the
personal property he assesses, nor can any
board Of assessor be made large enough to
meet the exigencies Of the occasion. The
difference between a S. paste diamond and
5000 gem may not be obvious to the tax
officer, and SO chrome and a Murillo may
be equally valuable in his eyes, while the
latest product Of New England loom may
seem Of q greater worth than a rug which
has adorned the palace Of the Shah Of Per-
sia''
The subcommittee brought forward the
suggestion that the time was propitious to
investigate the possibility of the exemption
from taxation, at least partially, of houses
occupied by their owners, and reported a
resolution favoring it, which, however, was
not adopted by the board.
In connection with the report an exhibit
was appended, showing the condition Of the
laws in certain of the states, as derived
from public documents and letters rec.lved
from investigators, as follows:
Views In the States.
New York-The tax upon personality is
unjust as between individuals, unjust as be-
tween communities, and, as experience has
shown the world. that it is impossible of
even approximately just administration.
Then why should it be continued? Report
for 1898 of Comptroller James A. Roberts.
TO successfully enact and enforce an
equitable law which would reach every
description Of personal property, and Sc
distribute the burden as to make it light for
all, only four things were necessary:
% First, to amend the constitutions of the
states; second, to amend the Constitution
of the United States; third, to amend the
constitution of human nature; fourth, to
amend the constitution Of things
The Constitution of the United States
would have to be amended, for under it
full one-third Of the personal property in
this city is placed beyond the reach of state
tax laws.
have to be amended SO that their laws shall
conform to yours, for you might as well
burn down certain business portions of the
city as to attempt to enforce such a law
in the face Of competing rivals with more
liberal tax laws.
''The constitution of human nature and Of
things would have to be amended OF per-
sons and personal property would hide or
reach Of your amendments impelled by the
instinct Of self-preservation.-Let from
George III. Andrews, commissioner of taxes
in New York.
Massachusetts-The taxation Of personal
property in the form of securities and in
vestments is thus a failure. 1t is incom-
plete, uncertain, not proportional to means
as between individuals, grossly unequal in
its effects in the different parts Of the
state. The experience Of Massachusetts in
this regard Is the same as the other states
in the Union. Everywhere, without excep-
ton, the testimony is that this part of the
system Of the general property tax is un-
equal, unsuccessful, often demoralizng to
tax officers, always irritating to taxpayers
The commission appointed to inquire into
the expediency Of revising the tax laws Of
the state, report issued October, 1897
New Jersey-It is now literally true in
New Jersey, as in other states, as has been
well said by another, that the only ones
who now pay honest taxes on personal
property are the estates Of decedents, wild
oWs and orphans, idiots and lunatics-Com-
mission to investigate the subject of taxa
ton, appointed by Governor Griggs, report
ing in 1897.
'The system (providing for personal taxa
tton) as 1t is actually administered, results
in debauching the moral sense 1t is
nHDn nf ay~S1r