Los Angeles herald., 1905-01-20
NOTED ECONOMIST DISCUSSES
PROPOSED REVISION
REMEDIES ARE CONSIDERED
Address Made Before Delegates to
County Assessors Convention,
and Members Of Senate and
Assembly Committees
Br Associated Press.

SACRAMENTO, Jan. 19.-The. pro-
posed revision of the taxation laws of
the state was the subject of an ad-
dress delivered tonight in the assembly
chamber of the capitol before the dele
gates to the county assessors conven-
tion, and the members Of the senate
and assembly committees of revenues
and taxation by Prof. Carl c. Plehn,
head of the department of economies
of the University of California. Gov
ernor Pardee was present at the meet
ing, as were nearly all the state Of
ficials having offices at the capitol.
Senator Ward, who was the chair
man of the evening, announced prior
to the introduction of the speaker, that
there would be a conference of the
revenue and taxation subcommittee
with Governor Pardee tomorrow morn
ing for the purpose of shaping the
various taxation bills into some har-
IilOulOuS IuC
which will have charge of this work
will consist of Senators Ward, Lukens
and Belshaw and Assemblymen Waste,
Duryea, Stanton and Goodrich.
H. c. Rapp, president Of the state
grange, told of the stand the oranges
an improvement in the taxation sys-
tenn of the state.
Prof. Plehn, who Is recognized as
one of the foremost authorities in the
United States on the subject of taxa
ton, first contrasted the commercial
and Industrial conditions of the United
States when the constitution was
adopted with the modern complexities
involved in property holdings and the
resulting problems which are presented
in the collection of taxes, .,-
ut is enough to study the tax roll
to show that personal property es-
capes taxation to very great extent"
said Prof. Plehn. 1.-THE kinds of prop
erty which notably escape are bank
deposits and merchandise. The present
system of taxation excuses to a great
extent the crime of perjury.
"The first remedy for this state of
affairs is to lay the blame on the coun-
ty assessors. Another remedial scheme
is the income tax. But our expert
ments in taxing incomes has signally
failed. There ought, however, to be
some way to get at a mans income
without putting him to the trouble of
a sworn statement. Instead of treat
ing all property alike in our tax sys-
tenn, admit differences and go after
each interest.
1.-THE governor in his message has
suggested the separation of sources of
revenue for the cities and state. Let
cities tax their own real estate and let
the state keep it's hands off.
California now derives $9000,0 900 of
taxes in revenue, of which $6,O00,000 is
direct tax. We could raise $75O,0O
by direct inheritance taxes, instead of
$25O,OO as we do now by our collateral
inheritance tax.
"Taxation of corporations is another
natural source of revenues in states
where state and county taxes are sep
arated. California should derive $3,0O0.-
600 from corporation taxes. Another
source which might be well considered
is state liquor licenses. There are
about $4,000 saloons in this state, and
revenue of $50 for each quarter for
each saloon would yield the state a
large income. Stamp taxes might be
another source. Billiard rooms and
bowling alleys and fees for the regis
tration of compulsory annual reports
of corporations are some other sources
that might be taxed. These make a
total of $6,OO0.OOO in revenue, which is
largely unaffected by our present taxa
tion system. At present the owners of
real estate pay S5 per cent of the taxes
of this state. The burden of our un-
equal system falls too heavily upon this
species of property"