The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-03-15
DOUBLE TAXATION.

In the substitute revenue Bill It ID pro-
vided that all contractors shalt pay . u.
cense tax. which Is right and proper. but
under the practical operation Of tho law
it is quite clear that there will Do double
taxation, and doubts taxnttor Is always
to be- discouraged. The amount Of taxes
which every contractor shall pay Is to
be ascertalned as follows:
IF the gross amount Of all orders OF
contracts accepted and executed do not
exceed five thousand dollars, he shall pay
the sum Of five dollars; II the amount
of such orders OF contracts are more
than five thousand and do not exceed
ten thusand dollars, ten dollars;li If the
amount OF such orders or contracts exceed
ten thousand ana do not exceed twenty
thousand dollars. fifteen dollars; II the
amount Of such orders or contracts ex-
coed twenty thousand and do not exceed
fifty thousand dollars, twenty dollars; II
the amount OF such orders OF contracts ex-
coed fifty thousand and do not exceed
one hundred thousand dollars. fifty dol
lars: ii the amount Of such ordor or con-
tracts exceed one hundred thousand and
do not exceed one hundred and fifty thou
sand dollars, one hundred dollars; and II
the amount Of such orders or contracts
exceed ono hundred and fifty thousand
dollars one hundred and fifty dollars"
THAT Is fair enough on Its face, but 1t
is unfair when the fact Is considered that
there are general contractors and sub
I4s Z - 81 nxt,A ny 4hA
law would operate, we cite the following
illustration given to us by one9.of the
largest and most reliable Of the Richmond
contractors We will. suppose that q
citizen is going to build o. housoSto cost
$4,000. He lets the contract tora gem
eral contractor and the general oontrac-
@rtor subjects a part Of the work to sub
contractors. We will say that the, brick
and stone work will cost $4,000, tho car
penter work $4,000 the plumbing $1,000, the
plasterlng $1,000 and so on. In such
case the general contractor would pay
| taxes on the whole amount OF the Job, to
wit, $4,000, while each sub.contractor
would pay on the amount Of his contract.
making the state receive taxes on SIS
900 or $4,000 worth Of work, whore the
whole job cost only $1,000.
What Is the inevitable OBJECT Of such 2
law2 Who will pay this extra taxi Not
tho contractors nor the sub-contraotors,
but the owner of the house. Each con-
tractor will charge little moro for his
work-enough to cover the tax-ard SO the
| man who builds $1,000 house will be
taxed at tho outset on an $4,000 job. Then
| IL he borrows money to pay for the Job
he will be taxed on tho assessed value
OF the property and also on the mort
| gage, for. Of course, the borrower pays the
mortgage tax. 81
This sort OF thing IS wrong In prnciplc
and whenever tho State attempts &c
gouge its citizens 1t arousas all ths
anarchy In him and tempts him to dodge
the assessor. II tho State expects he'
citizens to be honest In making their re
turns. she must set the example, Sh'
! must be fair and straightforward In Al
her. dealings with her citizens II sh'
would expect her citizens to BIO fair ant
straightforward in their dealings will
. her,
There is another view to take. Tha
sort OF policy is penny-wise and pound
foolish. for It tends to cripple enter
prise: tends to keep money from seeking
Investment In the State; tends to drive
capital out OF the State,
The State must have revenue to pay
her expenses and to meet the interes
on her debt. but We behave that sho cal
raise all the revenue necessary withou
resort to double taxation and oppression
|