The San Francisco call., 1904-08-24
TAX REFORM.

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for reform in our system of taxation has attracted
- general attention. We in receipt of many let
ers with suggestions that might be included
in the proposed system. AS we understand the
Grange plan, does propose to exclude personally
from taxation but merely provide support for the
State government by devoting thereto the de-
rived from corporations State franchises and excise
The corporations and franchises and licenses taxed for
State purposes be relieved from local taxation,
and the support of local is to be derived
from realty and personality. The plan has the
advantage of simplicity and economy, and is already
justified by its in older States, where it has
long been in approved operation.
This leaves the realty and personally to be dealt with
in such way to nearly equalize the burdens
of city and country realty, and also to get nearly
Just of personal property. The people of
Alameda County have the question of local taxation
der consideration and discussing it in joint meet
ngs of improvement clubs and other civic associations
We have suggest that they direct their discussion
the plans of the State Grange the end that commu
nifty of effort be secured with that organization and the
city and country representatives in the Legislature may
be brought together i'll joint endeavor to do something
California has long gone under awkward and
pensive methods of government because the people have
become accustomed the mperfections under which
they groan. But charging into greater
California with rapidly increasing population and
multiplication of interests and the imperfectons in
government will touch and affect greater number of
people, and if they impede development, will be bar
far interests. Therefore, wherever the machin-
cry be eased IN its operations it is wisdom to apply
the remedy
Ingenious application of the law reach seques-
tered personally. There those who promise
the difficulties presented by that sequestraon by taking
all tax off personally and putting it upon realty. But
this is justly opposed by the of realty since
sure that whenever any class of property exempted
put property in the untaxed form where has be pro-
tected by the law but will pay nothing for its protec-
ton.
One suggestion comes affecting the assessment
of personality which may deserve the attention of the
experts who discussing the question The PROPOSE
ton is lay surplus wealth tax. The surplus wealth
of is that which he and above his
debts that system applied realty by
of the mortgage tax. That tax provided for
trey different purpose than that effected by its opera
ton 1t was supposed that it would be a means of
reaching and assessing moneys and credits But
be the of preventing double of
property The owner of mortage records it, and
thereafter sequestration of the personal in the
mortgage becomes impossible. Therefore, to tax the
mortgage its full value and to the land which
it imposed its full value would be double taxation.
SO the of the mortgaged realty pays only the
surplus value of his land and above the of
the mortgage, the tax the mortgage being paid by
its owner. This is merely tax the surplus wealth
in land.
Applying it to personality, the of $1,000 worth
Of personal property, which he $500, would paw
a $500, representing his surplus wealth in that
amount of personally. The to whom he the
$500 has that asset, properly assessabe and
able personally, under the head of moneys and
its This seems upon such examination have been
able give it. to be the extension personal property
of the principle of the mortgage tax. 1t will only
avoid double taxation Of the personality but will
be of increasing the of personally
The who the debt book account, will
be very willing to confne his own assessment TO his
surplus wealth, and to do disclose his creditor
In this way all such personal book accounts
and commercial credits, outstanding the day fixed
for of property will be taxed those who
extend the credit and the surplus value of the property
will be taxed those who receive the credit The sug-
gestion is good discuss among the features of
the proposed reform. 1t will put the of cred
its where belongs, and ought add largely to the
assessabe personally of the State.
The State Grange get wider public attention to
the general issue has raised by arranging meetings in
the Cities to which its officers and members of its COM
mittee taxation communicate its views This will
bring about understanding between property
in the cities and the country and will greatly advance
the which the Grange has made its own.
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