The San Francisco call., 1905-01-04

These States, however, are only a
few of those which have made notable
progress in the same direction. Ohio
has recently adopted a corporation tax
law which has made it possible to re-
duce the rate of the general property
tax one half. Minnesota has reduced
the same tax to 10 cents on 800. Wis
consin has come SO near to eliminating
the ad vaIorem tax that only small
part Of her revenue is raised by it and
the rate is Is cents on the 500. Massa-
chusetts raises half, or more than half,
of her revenue by indirect taxes. Maine
is working along similar lines. Mary
land raises only a third of her revenue
by ad valorem taxes and West Virginia
but one fourth. The old State of Vir-
ginia has recently adopted new rev.
enue law which embodies number of
modern ideas. Tennessee secures from
other sources than the general property
tax considerably more than half of her
revenue and Missouri has made such
progress that her last State tax rate
was only Is cents on $100. Michigan
is making progress in the same general
direction. One of the latest States to
remodel it's revenue laws with gratify-
ing results is Colorado.
Since comparatively little can be
done under the present constitution TO
change the revenue laws, or to provide
new sources of revenue, it follows that
1t Is not necessary to decide at this
time precisely what laws ought to be
enacted. In a few ways-one of which
will mention a little later-some addi-
tional revenue may be provided. But
any new system must wait upon con-
stitutional changes.
The essential thing, then, will be to
propose the necessary constitutional
amendments, the object of which shall
be to give the Legislature some discre-
tion to deal with the subject of State
taxation. 1t should have authority to
continue the general property tax for
so long a time as may be needed to
work up adequate revenues from other
sources, and it should also have
authority to discontinue this form of
tax for State purposes when 1t Is no
longer necessary. and to- o'separate State
from local taxation. 1t should also be
in the power of the Legislature to
adopt such Of the several alternative
methods of taxing corporations as may
seem most expedient. An essential
part of the Legislatures authority
should be. to exempt from local taxa
tion certain classes of subjects which
may be specially relied upon to- pro-
duce State revenue. But as the power
of the Legislature over the whole
matter of taxation is absolute, except
as limited by constitutional restric-
tions, all of these objects could be easily
accomplished by a few constitutional
changes. The first and the tenth Sec
tions of Article XIII are those which
need to be especially considered.
One of the forms Of taxation, other
than the general property tax, of whose
legality under the present constitution
no fear need be felt, and with respect to
which the present Legislature can
legislate, is the inheritance tax, or as
it is sometimes called, the tax on trans
fers. 1 recommend to the Legislature
that it give careful consideration to the
question whether the application of the
present law should not be extended,
first, by taxing direct as well as col
lateral inheritances, and secondly, by
making the tax progressive, as has
been done in Illinois, Ohio, Missouri,
Wisconsin and many other States.