The free lance. (Fredericksburg, Va.) 1885-1926, 1902-06-14
1nu dRlAr ounsroN or rAxATION.

TNANNNf'HNaAA hfMh'MAI'Ms tifthfN Atf
following interesting statement in the
richmond Times in reference "a taxation.
To understand the advantage Of the
system of taxation adopted 10y the con
vcntion over the system now in vogue
ia this state. IL would be well to say at
the out-.'t that the la ling purpose Of
the Committee on Finance and Taxation
was tn adapt the system to modern ideas
aud conditions 10y requiring that all
should hp taxed once-anl only once
che rate to be- measured by the "iaeulty. -
"a text writers style IL. OF the tax payers:
tha, i- by his ability To contribate To-
the support Of the government
To accomplish this. it was necessary
to remove the OLD restriction upon the
Legislature which requires that taxation
shall be- equal and uniform In doing
this IL is not intended that taxution
shall not hc equal in the trGc meaning Of
the worl, but that the way should be
leit he, for the imposing Of taxes equal
when measured hy the ability oi the tax
payers.
IL was not, however, Thought advisa
bic to lcavc the matter entirely 20 the
will OF the Legislature so we say. tax
alton shall he uniform upon the same
class of subjects within the territorial
limits Of the authority laying the same So
This permits the Legislature 20 classify
the SUBJECTS of taxation and to impose
for state and local purposes taxes vary
ing in rate as between the classes. but
uniform ~ to all subjects Of class
~ present "a large proportion Of the
wealth oi the citizen consists of stocks
or bonds of corporations This species
Of property is Increasing rapidly under
existing conditions. This property has
to great extent successfully evnded all
is owing To the fact that we have hereto
fore endeavored to reach this property
10y taxing the securities in the hands of
individuals after having already taxed
the capital which these securities repre-
sent. To- the corporation itself
The natural reluctance to pay taxes.
supported ia these eases by the conten-
tion Of the tax payer. that this property
was hcing subjected to double taxation.
has contributed To bring about the re-
suit that only the ignorant and extreme
~ honest return this species of property,
thus making the payment Of such taxes
n "hurdea upon ignorance and honesty
and premium upon fraud and dishon-
esty"
The new constitution proposes to
remedy this evil 10y taxing this property
az the fountain head: that i. in the hands
Of the corporation itself. by imposing
upon corporations. taxes upon their
property, and in addition franchise taxes.
The actual property and the franchise
constitute the whole of the value of the
corporation property, and the shares OF
stock are nothing but certificates OF
ownership therein, so we provide that
all the corporation property being once
taxed, the shares of stock shall not be
taxed
To correct or prevent unequal ASSESS
ments of property is n matter of more
difficulty. The only remedy that offers
a satisfactory result is the segregation
OF the subjects of taxation for purposes
of State and local taxation.
Conditions in Virginia viii not as yet
admit Of this segregation, but we have
provided that il may be done in the fu-
ture. The change in the method of ap-
pointing Commissioners of the Revenue.
it is believed, will render them more indie
pendent in the discharge OF their duties
These general requirements are, as
stated. for the purpose OF securing uni
formity in taxation. and of apportionine
the burdens in proportion TO the ability
to pay, and also prevent as far as prac
ticable double taxation
There are other provisions Of tempo
rary nature, such as the reduction of the
State tax rate from forty cents to thirty
cents; the prescribing of the method d
taxation of railroads and canals; and %
taxing banks and trust companies
The prosperous condition of the State,
finances. with n plethoric treasury, and
the increases in revenue which will accru,
under the new Constitution such red uced
expenditures. which will follow. amply
justified the reduction and indeed mad,
il the duty of the convention to max,
this reduction.
The other measures were demanded by
existing conditions, and We're concede,
to be Just by the parties affected.
One other important feature may b'
mentioned, the curtailment OF property
exempted from taxation. which it is be
| lieved will add several millions of taxa
I BILE values Such in brief are the impor
tant changes in the system OF taxation
and il is certain that the net result viii
be the addition OF large amounts of an
nual revenue to the State. and n NOR
equitable apportioDment Of the publ
burden.