The Providence news. (Providence [R.I.]) 1891-1906, 1902-12-22
The Voice of
The People
THE QUESTION OF TAXATION.
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THE QUESTION OF TAXATION.
Editor Providence News:
was very much interested In Council
man John G. Massie's address on the sub
ject OF Taxable Property" According to
Mr.. Massie there is large amount of
property which now escapes taxation In
| this city $4,000 000). OF course this
amount is personal property. and under
our laws II Is not taxable" Never mind
why Il is not taxable. but Mr.. Massie's
argument Is that II should be taxed.
why?
For various reasons, but will quote
but one: Large concerns which have
| full police and fire protection do not pay
one cent towards the maintenance OF
such protection"
This is true. foreign corporation
(Rose & Co.. for instance), has Its
property protected by our police and fire
department and yet does not pay one
cent of tax on said property and looking
at 1t as Mr.. Massie evidently does. that
all property should pay It's proportional
share OF taxation" II seems only fair
that s40.000,0O0. which now escapes taxa
tion should help reduce the burdens we
suffer from.
But supposing you do not believe that
"all property should be taxed equally
which certainly do not. but instead be-
lieve that that property only should be
taxed which receives a benefit from tax
ation and then in exact proportion as IL
Is benefited. Then IL remains for me 10
prove what property Is benefited by gov
ernment. and what Is not. believe 1t Is
a recognized fact In political economy
that the only property benefited by tax
alton Is land. Therefore, | say, let the
city OF Providence tax Its land values
only. OF course. that would be the single
tax but the time is passing when the
people are frightened at a name
Let us take the case OF Rose & Co.
That corporation uses the three kinds of
| property, which is taxed: Land improve
ments and personal property The land Is
| taxed go are the improvements, the per-
| sonal property is not.
Who pays the tax on the landH
Rose q Co.
Who pays the tax on the building7
Rose e. Co.
OF course the owner OF the properties
| has the name of paying the taxes, but ~
Is now very well recognized fact that
| the tenant pays the tax: so II is hardly
| fair to say Rose g. Co. pays no tax. but
what Mr.. Massie means is. that on the
merchandise and fixtures tsaying Rose
| a CO. owns the latter the necessary
police and fire protection Is free, free, to
| Rose a. Co.
The city certainly receives nothing from
expenses OF our police and FIRE cepart-
ments on their merchandise. but they
| pay for II all right. They pay IL In the
| shape Of rent 10 the cwner Of the land
| Oocation) on which they do business As
| a business man, Mr.. Massie knows that
| II there were no police or fire departments
| I'm the city Of Providence that that par
| ticular loca tion on which Rose a. Co. do
| business would not rent for as much. and
| the dfffe, ence must represent tat least
| the value of these departments to that
| special corporation.
| So they pay the tax all right. as I say.
\ but they do not pay IL To the city: they
| pay II TO the owner OF the location. There
! fore. our argument In that case would he.
| let the owner OF the location pay for the
police and fire protection which Rose "
| Co receives. II we tax Rose a. Co. that
| corporation Is taxed double first by the
| landlord second by the city. and the land
| lord does not pay one cent OF tax lie
| don't now. OF course. MIR. Massie might
| argue that the landlord should not pay
| tho tax on what another man owns; but
| 10 Rose a CO. pays the tax on the land.
| which. as a tenant. they must. and also on
| the house. which. as tenant they ulso
must pay. then that firm pays everything,
| and does just what Mr.. Massie might OBJ
| iect to. namely. pays someone else's tax
| on someone else's property.
Leaving the principle aside for one mo
| ment. that that property should pay the
| taxes which Ia benefited by taxation" let
| us ask which Is the best party TO tax. the
| owner OF the location or Rose a. Co? The
| owner OF the location is OF no benefit TO
| the city Che may he dead man-prohably
| Is-he may be foreigner and living
abroad: it Is a matter Of absolute indiffer-
p, ence TO us who or what he II. The one
| who is a benefit TO the city is the one who
| builds a house and does business therein.
| and that II Rose & Co.
| Is it not foolish TO tax the one who II a
benefit 20 the city and not 10 tax the one
who II injuring the city. and yet Mr.. Mas
sie unconsciousiy advocates the former
| Is II not best TO coax capital into the
| city, Is Il not best TO coax Industries to
4 settle here1
| They give employment 20 skilled and
unskiiled labor and supply US with the
/ good things we desire. Taxation used
| rightly. and to be used rightly must be
| confined 10 a tax on land values. and cor
| porations having franchises (which are
nothing but land vslues) and then only on
| the value Of their franchises. can do n
/ great deal Of good. but as long az our
| present system Of taxation exists. which
says. IAN property shall be taxed al It's
| full cost value" 40 long will II prove n
curse and n blight.
JOHN A. MLAUGHLIN.