New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-03-07
INDUSTRIOUS INEQUALITY.

An incident which has Just been reported
from the New-YOrk City Tax Department ought
to have the careful consideration of those mem
bers OF the legislature and their constituents
who are resisting reforms Of the personal tax
laws under the strange deluslon that they are
fighting schemes 70 relieve rich men and in
turn increase the burdens of the poor. Mr..
George W. Vanderbilt appeared at the tax office
asking a reduction of the tentative assessment
as the wild guessing of the tax officers is eu-
phemistically called-aganst him of 100000
for personal property. He swore off all but
$1,000 making oath that all Of his property in
excess OF this sum was in the form of real es-
tate or corporate stocks, and therefore exempt
from personal taxation Yet 1t is a perfectly
well known fact that many persons pay as
much taxes on personal assessments Mr..
Vanderbilt who have not one-hundredth of his
personal property. whose whole wealth. in fact
would hardly furnish his drawing room, the
articles in which are taxable under the law I'M
less offset by convenient debts. The Tribune
has hitherto told the story Of woman of re-
fnement who lived in a hall bedroom Of a
boarding house in a good street. Her savings
from lifetime Of teaching were $4,000, invest
ed in bonds. the income OF which eked out the
reduced salary which in spite OF I'll health she
able 10 earn. The guessers of the tax
full sum OF $4,000 and for several years she
paid taxes of about 212 per cent on that sum,
till finally, by the advice Of friends. she was
enabled to reinvest her small means. like Mr.
Vanderbilt, In corporate stocks exempt from
personal taxation.
Now Mr. Vanderbilt is not TO be blamed for
falling to pay taxes on property not legally
taxable. Indeed, since, as he sl1ears he has
only $4,000 in personal property, including his
pictures. furniture jewelry and bank accounts
subject 70 taxation under the law he is to be
commended for refusing to submit to illegal
extortion. Mr.. Vanderbilt is not responsible
If the people and lawmakers Of New-YorL are
so unutterably stupid to pass laws which
result in taxing the small savings Of women
and the trust funds Of children who have no
convenient debts and no facilities for getting
their property into exempt form. Deliberately
vicious tyranny would have difficulty in devils
ing more unequal and outrageous scheme of
personal taxes than the people of New-York.
with blind prejudice, persist in maintaining and
from time to time in making worse by popular
outcries for the casting OF drag nets by asses
sors TO catch rich men. The rich men can AL
most always get away-honestly and lawfully
get away-with the bulk of their property and
pay taxes on an odd $1,000 or $4,000 perhaps
while the drag net catches such little invest
ments as that of the woman of whom we have
spoken.
OF course, the obviously sane proceeding
would be to abolish personal taxation, but the
voters Of this State are not yet educated I'D
to the point of approaching the folly of trying
TO tax property with wings, which will fly
from sight all the faster the more strenuous
the efforts made TO catch it. The next best
thing would be 10 subject personal propertv
whenever possible TO some uniform tax OF uni
versal application. This has been done in the
case Of bank stock. Mortgages however, are
still subject 10 unequal taxation. This is a
form OF personal property largely sought for
trust investments. Few OF the mortgages held
by rich men are taxed, while the holdings of
people Of small property especially women who
are known to their neighbors TO live on a fixed
income not earned by daily toll for wages are
pretty likely 10 be taxed These securities
ought on principle to be entirely exempt for
tax on them is an added burden on the bor-
rover who is already taxed on the real estate
mortgaged. Since this is at present impossi-
ble IL would be much better for all classes to
subject all mortgages to a small tax, such as is
proposed by the pending Stranahan bill, than
to keep In operation the present Ubiquitous plan,
whlch haives the incomes Of many poor people.