New-York tribune., 1905-01-13
THE PERSONAL TAX FARCE.

The annual farce of marking up personal as
sessments on the tax books for the sake of mark
ing them down is once more presented to us, to-
gether with the usual outcry against "tax dodg-
ers." The spectacle of men who everybody
knows are each worth millions cutting down
their assessments to a few thousand apiece or
swearing them off altogether affords a ready
theme for indignant comment 10 many dear
friends of the common people" No doubt
there is a good deal of clever fencing with the
technicalities of the law or even downright per-
jury INDUCED in to escape personal assessments.
1t does seem absurd that a multi-millionaire
should be able to announce the sum which,
as a matter Of good will to his fellow citizens,
recognizing his moral duty to share the public
burdens, he is willing to pay taxes, and that If
they are not satisfied with that sum he will pay
nothing at all. Yet it is not his fault that the
laws permit this and that they are so utterly un-
equal in their operation that such a man may
feel that he is doing much more than others of
similar wealth.
State which by its laws puts premium on
perjury need not be surprised that it gets what
it bids for Yet, as matter of fact, we believe
that the swearing off is for the most part per-
fectly proper. In the first place, the assess
ments are made at random. clerk runs over
the directory and puts down persons of whom he
knows nothing for whatever sums strike his
fancy. 1t is pure guesswork Stenographers
and clerks wake up to find themselves possessed
of large properties, in the opinion of the Of
fcials. The preliminary assessment is nothing
more than an order to show cause; and when
the cause has been shown large proportion of
the guesses are found to be erroneous
Even the most violent critics of 'tax dodgers"
admit that the swearing off Of these hitor-miss
assessments is legitimate, but their wrath is
especially directed against known rich men who
do not pay personal taxes on the popular street
corner appraisement Of their wealth This is
OF course, cry which appeals to the ground
lings. 1t ignores, however, the fact that per-
sonal taxes are levied not upon the common esti-
mate of mans wealth, or even upon his actual
wealth, but upon certain specific classes of prop.
erty In excess of certain specific classes of debt
A man may be richer than Croesus and still be
exempt from this particular tax. He NAV own
absolutely and free from debt the whole capital
stock OF the New-York Central Railroad and vet
swear off personal assessment with q clear
conscience. The law exempts from personal fax
the stocks of corporations in the hands of indi
VlduaIs, ana makes that particular wealth con-
tribute to the State by tax levied 11pon tho cor
poration Itself. This is only one instance of tbe
many forms which personal property NAV
take and be free from the tax The fact that
any mans personal tax is small does not neces
sarlIy mean that he Is not paying his full share
OF the public expenditures. 1t merely means
that his property in the natural course of busi
ness IS, or has been technically made exempt
from the operation of one particular statute.
of course this statute is unjust 1t is so for
mulated as to put heavy burden on small es
tates invested in bonds and mortgages. and
especially on trust funds Of widows and or
phans. The remedy, however, is not in abuse of
those whose property is not reached by its pro-
visions, or demand for more finetooth comh
methods of adding to the roll new names there.
Oy merely doing more injustice, but in a sane
straightforward reform Of an absurd and ont.
grown tax system which may have answered
ene purposes Oh a rural community where every
body knew everybody else and wealth MO.
mostly in simple visible forms, but which now
utterly rails to reach the bulk of personal nron-
erty and puts an unjust burden on a few.