Five Mile Beach weekly journal., 1906-10-17
EQualizing Taxes

/ question mas Deen Truthful source Ol
discussion. In the early days it was
not question of equalizing, but a
practice of those in power to tax as
much as they could stand those in
their power.
The old plan is not altogether for
gotten and while the trend as a whole
is to make all kinds of property bear
just share of the burden, the spirit OF
forcing certain classes to bear an un-
equal share constantly crops out. The
railroads should bear just share Of
taxation but few will deny that it is
popular with the public to pinch them
to the limit, hence the reason why
they are so stubbornly resistant.
In New Jersey each County Board
of Equalization has its problems to
solve, not the least among which is
that OF the taxation of the shares of
National banks.
For many years, in some counties,
each Assessor was a law unto himself
in the matter. In some other counties
the matter was settled justly or un-
justly by the County Board of Asses
sors. This year the County Boards of
Equalization in conjunction with the
State Board are supposed to see that
the matter is settled on correct basis,
nevertheless the fact has already de-
veloped that different counties are as
sessing bank stock shares differently.
For many years Trust Companies
have been assessed for the amount of
their capital stock with deductions al
lowed for so much of their capital as
was invested in non-taxable securities
such as government, municipal aud
other non-taxable bonds, while the
National banks were not allowed TO
deduct non-taXables.
A non-taxable security is one which
the State or National govern nent has
decided shall be exempt from taxation.
For instance, government bonds are
non-taxable because it enables the
government to borrow money at a
lower rate of interest than would other
wise be possible. The government
compels all National banks to invest
at least one quarter of their capital
stock in Government bonds which are
made basis for the issue of bank
notes. Right here the taxing authori-
ties get muddled. They claim that
| . oh ha ol g
deductions in bank stock assessments
because circulating notes are issued
against these bonds. This, however,
is condition with which State and
Municipal authorities have nothing to
do. 1t is the function of ongress to
provide money for circulation and
when it does this and taxes the banks
on their circulation, the State has no
put in it because it is controlled en-
tirely by the government. Because of
the policy of the government forcing
the banks to buy bonds, the govern
ment is enabled to borrow money at
less than two per cent. interest per
annum.
State, county and town bonds yield
less than four per cent. interest as a
rule because they are made non-taxa-
BILE and trust company or an individ-
ual or estate owning such bonds are
granted exemptions from taxation
without question, while the policy of
assessors in this state has been to de-
cline to allow the exemptions if they
were held by national banks.
Bonds of corporations in this state
are also non-taXable in the hands of
individuals or trust companies, in fact
in the ownership of any one except a
taxable by law because the property
which they represent is taxed, and to
tax the bonds also would make what
is known as double taxation.
Another stumbling block over which
the taxing authorities trip in this mat
ter is found in the fact that national
banks have large resources in the way
of deposits. The fact is that all the
deposits are the personal property OF
individual depositors and are all taxa
bic by law as the personal property of
the depositors. To tax the banks in
any way for them would bedouble tax
alton and the fact that it is so regarded
is found in the fact that similar argu-
ments are not used when trust com pa
nies are taxed.
The law on the statute books known
as the Buck law seems to be ignored by
some taxing officials. We quote the
law in full:
"Be it enacted by the Senate and
General Assembly of the State of New
Jersey: In assessing the shares of
stock of banks or banking associations
organized under the laws of this state
or of the United States, the assessor
GbalI alInU oil tha a pd n otiona and oy-