The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-02-05
MONDAY. FEBRUARY 5, 1906.
Without sentiment there would be
no life at all.
Questions of Taxation.


about the taxation of the salaries of State
Judges touches a question of gravest
Importance to the Commonwealth, anu
we are glad 1t is under discussion. When
the question of the salaries of Judges
was before the convention of 1929 30
that wonderful body of men of which
Madison, Monroe, Marshall, John Ran
dolph, and other great men, including the
great-grandfather of our present Senator
wickham, were members-Chief Justice
Marshall, in maintaining the proposition
that by no device should the salary of
Judge be reduced during his term OF
office declared that the greatest scourge
with which angry God could afflict an
erring people was an Ignorant, corrupt
and a dependent judiciary.
1t seems to us, therefore. that neither
State nor municipality nor county should.
under any pretence of an income tax. be
Judges And yet we are heartily in favor
of an income tax. 1t Is objected to an
income tax that it is inquisitorial and
tax on energy and ability. In measure
this is true and yet an income tax,
above all other taxes, responds to the
essential and fundamental principle of
Just tax, in that only those pay the
tax who are able to pay 1t. TaX-dodging
Is justified In the hearts of many because
they know as does every intelligent per-
son, that not only is the system of taxa
ton in Virginia based on wrong prln-
ciples. but its administration is grossly
and VIGOROUSLY unjust
One glazing error in the principle of our
to tax certain property twice, while the
administration is outrageously unjust in
the fragrant inequality of assessment for
taxation of the same values of property
in different sections of the State.
Any fiduciary or trustee In Richmond
or any other city will tell you that under
our tax laws from one-third to one-half
of the income of his beneficiary is often
taken for taxes, and that the effect is to
oppress cruelty those who are wholly
unable TO take care of themselves.
Take the sts per cent railroad bonds
of any standard issue, selling at par, of
which there are now several, and deduct
the city. and State taxes collected in
Richmond. and how much will the BEN
eficiary get? Not quite one-half of the
total income.
An income tax of ono per cent, or even
two or three per cent, would be a merc-
full provision to such dependents, rather
than the confiscation of so great a part
of their livelihood.
The whole principle on which such taxes
are now laid is wrong, and Its wrong Is
desolate, but oppressed.
No satisfactory or efficient method of
assessing income taxes Is in practice
by the State. Hardly any two persons
will agree in the construction of the
State income tax law. Ordinarily the
commissioners of tho revenue know Moth
ing, or next to nothing. on the subject
great many persons keep no books
and have little idea what the word income
means. The blind lead the blind, and tho
State falls in the ditch. There are many
great misconceptions about income, and
striking illustration of a great popular
deluson Is found in the reported move
ment to make Mr.. Thomas f. Ryan pay
an income tax on his supposed large re-
turns from his holdings of stock of the
Equitable Life Assurance Society. Mr..
Ryan paid, it Is said, s2,5CoOOo for sol
shares of that stock. That is, lie paid
nearly $500 share for stock whose par
value is 500. The fact is, this stock only
pays 81 share per annum. On Mr..
Ryan's 5ol shares he receives ss.507 per
annum, the income tax on which. without
any deductions. would be s35.
This is most extraordinary case. and
never likely to occur again. but such Ii
the fact. for We happen TO know stock.
holder in the Equitable who paid $l25N
for five shares. and his semt-annua
dividend was $780,
There is no reason, however. that the
dlligent collection of income taxes should
be discouraged because of the anomaly.
We shall have more to say on this
subject
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