Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-23
GUIDED BY PROF. SELIGMAN
Will Recommend Many Changes and
a Graduated Income Law.
DEALS OF GREAT
SCOPE
Aside From the Matter Of Income
and Inheritance Taxes No Radi-
cal Scheme Suggested.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, December 2o-The state
tax commission, which for nearly year
has been considering 1.-The expediency of
revising and amending" the present sys-
tenn of state and local taxation, has prac-
t1cally finished its work. Its members have
agreed not to disclose the details of the
conclusions reached until their report is
made, which by law must be before Janu-
airy 10. The report will probably be made
on January 5. 1t is known that certain
radical changes in the imposition of taxes
will be recommended, and that these will
relate to a graduated collateral and direct
Inheritance tax, increasing with the size of
the estate, and to the advisa bility of insti-
tuting state income tax. There will prob
ably be some changes recommended touch
ing on personal taxation but these will be
Of minor Importance.
The commission consists of fifteen mem
bers, five appointed by Gov. Higgins, five
members of the state senate appointed by
Lieut.. GOV. Bruce and five members of the
assembly appointed by Speaker Wadsworth.
Two members appointed by Gov. Higgins
have resigned. Among the other members
of the commission are Warner Miller,
chairman, and Prof Edwin r. A. Seligman
of Columbia University. The commission
divided it's work among subcommittee,
and these held sessions almost continu-
two months ago the work of assembling
their conclusions was reached, and the
work of the commission is now awaiting
it's final revision There will probably be
one more meeting this week, when all the
details will be settled.
Work to Be Done.
The work yet to be done, aside from the
report, will be to pass upon bills which are
now being drawn up for submission TO the
legislature to the recommended
tions to be made.
One of the members of the commission,
who declined to permit his name to be
used, said yesterday:
You can safely say this: There Will be no
fool legiSla ton proposed. 1T will be prac-
teal, easy to put in operation and will
stand the test of inquisition by the high
est courts if it should be adopted
The members of the commission say that
they have been guided in theory largely
by Prof. Seligman's ideas. They have pro-
ceeded on the idea that those who can best
afford to bear the burdens of taxation
should do 80. in other words there Is to be
a radical differentition between the rich
and poor man. and a man grows richer
his proportionate share or rate of taxation
will increase. The first application of this
plan suggested will probably be as to in
heritance taxes.
Far Wider Scope.
All that the members of the commission
will admit is that the changes on inheri-
lance taxes that they recommend will give
far wider scope of taxation than exists
at present in this respect. These changes
will be along the lines of increasing the
taxation, according to the size of the es-
tate, If the idea of making the rich pay
heavier is carried out. Whether a gradu-
ated inheritance tax will also be favored
outright the members of the commission de-
cline to say. In the matter of an income
tax all that the members of the commits
sion will admit is that the matter has been
considered from every practical stand
point and that recommendations will be
made advocating in certain contingencies
such a tax.
The commission will point out the re-
suits obtained by such tax in England
and other European countries and will
show what results could be obtained in
this state. Aside from favoring such a
tax, it is declared that the commission
will favor a small rate, one that would not
be felt materially by those called upon to
pay it, There are so many large incomes in
this state, it is argued, that small rate
graduated. however, according to the size
of the income, would work little hardship.
Small Holdings Tax Lessened.
The revenues from these new taxes, it is
said, will be so divided that the local
authorities will receive the larger part, so
that the tax on real estate, especially on
small holdings, will be lessened materially.
The commission will cease to exist after
January 10. Its powers are solely those
of recommended ton.
Chairman Warner Miller went out of
town today for Christmas holiday. Before
he left he communicated with sew raj men,
bers of the commission asking them not to
make revelations of the conclusions of the
committee, because he did not consider it
proper to tell what had been done in adj
vance of the submission of the report. Mr..
Miller admitted, however, that several rad
zeal changes would be recommended. and
among them a graduated income tax. All
he would say was:
1.-The whole subject of taxation has been
dealt with most exhaustively, and the
subject of a graded income tax in par
ticuar. If our plans are adopted it would
mean a great change, in some respects, in
taxation. We have touched on every phase
of taxation, but aside from the matter of
income and inheritance taxes our recon-
mendations will not be very radical"