The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-04-09
branch tines Under their charters, but
we may rest, secure In the assurance
that no new roads Will endcavot to come
In IL this for tho good Of the Common
wealth. 4s 3 3$ a Si Sas
THE slNcorlE TAX.

i duces a part OF an editorial IN this m per
on the incomu tax, adding tho following
comments. VI N il.i
A We conclude with THE ,Tlmes-D ispnts h
i that 1t Is not so much tho fault OF tho
tax payers md the commissioners D. tho
revenue, though they IRE not EXEMPT az
| OF the statute which does not through
proper methods force tho meaning or
| the law upon the attention Of both Tie
consequence Is that there are very few
Taxpayers who mako any returns y 81
Income. They are a ruptuusly con-
| scientiotis class who before signing tho
return tho commissioner gives them fer
sess,neht carefully scan sthc tons
and ions thereon ind ascertain,
whether they arc telling ths truth IN
signing the paper; many OF these nnisl
UP by putting down some return or N
come. There Is another clnss, tho help!
less, represented ~ administrators, Gu
rntors and guardinns bound ny l0w.to
make return to the special assessing
officer appointed for this purpose, who
gets an extra big commission for his
work. This class. the helpless, pay full
Income and another, what sl,no may
&denomnatc the too scrupulously honest,
nre also inflicted. IL, s S3 y, 4. SS
8a Our Richmond contemporary covers the
ground completely when It says tho law
lis repronch to the State. Ordinary
3decency requires that the 14eglala tira and
2 the State officers make It applY 70 al
or tho Legislature repeal u. IS
e We wish that the press Eeneru..y would
take up this question and discuss II. for
IT is ono Of the most Interesting and i'm
portant OF all questions i, connection
with ourtax system. Each editor in Vir-
GINA could easily obtain a copy. Of the
Auditors report by applying for It, and
by giving a,little attention to the !, el,ort
lie will see that the staten1en:s which
we have made concerning the income tax
are true. l!, ss5 ri
81 I'he fatal defect In the law Is the ex-5
.emption clause. That exemption Of $500
d year covers multitude Of Sins, ma
furnishes the loop hole for many on
escape. S55a T55 NJ II
4. First Of all the corporations, except A
tho railroad corporations. arc entirely
exempt from anything like ar income
tax, and that Is all wrong. why should
.not#the corporations. a " al as indiril-#
.uals, pay an income tax? Everybody
knows that In many instances the phys
.ical property Of a corporation does not
begin to represent Its assets. II SO, how
is It that the capitalization generally5far3
exceeds the sum total of physical prop
erty valuation? Under the modern rule 4
corporations are not capitalized accord
Ing to their property holdings, but &C.
tcording to their earning capacity Why
should they not be Il taxed by the same
rule? If a Virginia corporation has prop
ot,a tn, &l,o NO r
1903 shows net earnings Of q million .dol-9
lars is It right that the corporation
should pay taxes on a half million #dol-a
lars only? II an individual has an In
come Of million dollars, lie IS expected
to pay taxes on tina sum, less his e;i-ss
emption OF 5000. Why, then, should q 4
corporation with an income Of million
pay nothing? Ii. z.
. The corporations should pay on their
income. II Is the only fair way Of taxing
them, and 1t is the only sure way. IT is
nonsense to exempt the corporation and
then go chasing after the stockholders
The way 10 tax the Stockholders IS to-
tax the corporation on its income, ind
then to tax each stakeholder on his In
come. If that rule were adopted Tie
state would get Its dues, and there could
be no complaint on the sco:e Of double
taxation Then If the State would tax
all Incomes making no. exemption IN
any case, the problem would be solved.
We do not wish to see any man OPP
pressed, but it does seem to us that ever
citizen Of Virginia should pay something
in the way OF taxes, and We Know Of no
8fairer basis Of taxation than mans
income. II n man POSSESSES q piece OF
real estate, and for one reason or an
other he Is unable to find a tenant for
It, he has to pay taxes 0hethar no re-
Bceives revenue from 1t or not, ana II he
falls behind by and by his property is
put up and sold for tho beneAt vt tho
State. In vain will he plead hat he has
no income from the property. and that
he is unable to pay the tax Tho State
exacts the last penny even to the for
fcituro Of tho property.
But no such plea can be mado In the
case Of ali income tax. Evory man who
has IN Income can afford to pay some
thing for tho privilege Of living In the
Sthte. for the protection which he re-
3ceiyes. and for tho benefits generally of
citizenship, Under the present law every
person whose income does not exceed
5000 a year is exempt from the income
tax. But would It be great hardship
upon persons whose incomes arc as much
as 5000 to pay forty cents on the hundred
to the State. II the income Is small the
income tax is also small. The man with
an income OF 5000 would pay only $40 n
year to tho State, or twenty cents a
month. The man with an income OF
$500 would pay forty cents year or
little more than three cents a month.
and so no. This tax would fall lightly
OH the great majority OF people. yet 1t
would give the State an abundant rev.
enue and probably enable her to reduce
tho general levy. There are hundreds
and thousands OF young men In Virginia
who make at least six hundred dollars
year, and who pay no taxes whatever.
because they do not happen to own any
ftaxnble DroDerty MANY OF these do mt