New-York tribune., 1905-01-09
STATE TAXATION.

The prospective inability of the existing in
direct revenues to meet the expenses of the
State unless these are radically cut has led to
some indiscrmlnate Democratic attacks on the
whole system of indirect taxation, which Is
mistakenly assumed 10 have been recent de-
vice OF Governor Odell to hide extravaganza
from the taxpayers. 1t is even said that Gov
ernor Higginss plan for economy is hopeless
unless the indirect taxes swept away and
the burden of the State government placed di-
rectly upon the people
AS we have frequently said IN discussing this
subject there is virtue in a direct tax. There
is much 10 be said In favor of giving each citi-
zen in his tax bill something with which TO
measure the comparative cost of government
If a general property tax could reach substan-
tally all property which ought TO share the pub
lie burden, that would unquestionaby be the
ideal instrument for keeping each voter in
touch with the State. But the general prop
erty tax notoriously fails to reach an enormous
amount Of wealth, and its attempt TO get at
personal property results in grotesque Unequal
ity and injustice. Moreover, the State tax, even
at its largest is so small an item in the gen.
eral direct tax bill, at least in the cities, that
ii does not really awaken interest and make
the citizens efficient censors Of State appro-
priatiOns. By the indirect tax system the re-
sponsibility of the State administration to the
outside of strictly rural districts, it makes little
difference. The great body of people whose
changes of opinion sway elections would not
a matter OF fact base their judgments on the
variations Of a State tax which is a minor
item in their tax bills.
The indirect system originated. not from any
desire 10 increase expenses without attracting
attention. but from the realization that cer-
tain properties hitherto untaxed should con-
4-sl>. - h., 49, IN
been levied for many years, and are obviously
proper. In the administration OF Controller
Wadsworth the inheritance taxes were put in
successful operation. The system has since
gradually developed under efforts TO distribute
the tax burden more and more fairly on diff
ferent classes Of property. For instance W at
ever may be said against some features of the
Raines law, unquestionably the liquor tax
collected by the State for itself and for the 10
calities is a great improvement on the old
rdiculousy inadequate license fees for an i'm
mensely profitable traffic which harms the COM
munity and costs the State for the admins
tration Of justice and charities vast sums of
money. AS the indirect revenues approached
the States expenditures students Of scientific
taxation, Notwithstanding the theoretical bene-
fits of the direct tax, opportunity TO
secure a much greater good by entirely sepa-
rating State and local taxation. If the neces-
Sity for uniform assessment could be done
away with we could avoid all the troubles OF
equalization and adapt methods to local needs.
Counties where personal property tax is pOpu-
lar could continue it, and counties where it is
merely an instrument Of injustice and tempta-
tion to perjury. because in them the bulk of
personal property is Of the sort that can be
concealed or easily transformed to be
empt, could raise their own funds in their own
way.
No legislature of any party would dream Of
abolishing our corporation and transfer taxes.
1t is ridiculous to talk Of going back to the old
time. The conditions Of the old time no longer
exist Then there were few stocks, few bonds,
few great personal estates. Almost everybody's
property was where it could be seen and meas
ured. All this is changed. and without indirect
imposts millions on millions Of property would
never pay a cent to any public treasury. The
indirect system is bound to persist and the
care of public officials should be 10 perfect its
details, as Governor Higgins has suggested
with reference to the savings bank tax. which
appears TO be unjust. and TO strive for the
final separation of the State and local taxing
powers.