The sun., 1906-12-23
FORA GRADUATED INCOME TAX
oNE or THE CONCLUSIONS or THE
STATE TAX COMMISSION.
Graduation OF Death Taxes ON Roth Direct
and Collateral Inheritence 80 as 10 Bear
Hardest on Large Estates said 10 he
Acknowledgements OF small Homes

The state Tax Commission, which Tor
nearly a year has been considering "the
e1peIcncy of revising and amending"
the present system of State and locsltaxa-
non. has practically finished its work.
T., me- nj ers have agreed not to disclose the
dn,all5 Of the conclusions reached until
their report is made, which by law must
be lcgore January IL. The report will
pro. a " he made on january 3. 1t is
known that certain radical changes in the
imposition of taxes will lie recommended
and that these win relate to a graduated
collateral and direct inheritance tax. in
crras.ng with the size Of the estate, and to
the ady,siabilty of instituting a State
incop q taX There will probably lie some
chances recommended touching on per-
sonal '"xaton, lut these will he of minor
Importance.
The commission consists of fifteen MEM
bv7, five appointed by Gov. Higgins, five
members OF the State Senate appointed
hy Lieut. Gov. Bruce and five members
OF the Assembly appointed by Speaker
Uadsworth. Two members appointed by
GOV Higgins have resigned, Lawson Purdy,
10 become a member of the City Tax Com
mission. and Charles S. Wheeler, to go
upon the Supreme Court bench 10y appoint
ineut Of Gov. Higgins. The other MEM
hers Of the commission are Warner Miller,
Chairman Samuel n. Ordway Prof. Edwin
'R \. Seligman of Columbia University;
Senators Malby. Grady, Lewis, Warwick
and SAKE, and Assemblymen Wade, More
land Mead Boshart and Palmer The
Colnms son divided its work among SUBJ
committees and these held sessions almost
continuously during the summer and fall.
About two months ago the work OF assemb-
oh ha
work of the commission is now awaiting it's
final revision. There will probably be one
more meeting this week when all the de-
tails Will be settled.
The work yet to be done. aside from the
report, will be to pass upon bills which
ore now being drawn up for submission to
the Legislature to carry out the recon-
mendations to be made. The preparation
Of these bills has been intrusted TO some
Of the best known lawyers Of the city and
State with the idea of having them SO
drawn that they will be entirely clear as to
the methods by which the new taxation
scheme can be enforced and also TO avoid
constitutional entangements. Several
drafts have already been considered and
there is a practical agreement upon the
scope of the bills, but the members OF the
commission say it Ia an error TO assert that
definite scheme of reform ia axation has
Depn AIDpTONeu IOIInhlly ds yet
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 legislation proposed. IL will be
practical. easy TO put in operation and will
stand the test of inquistion by the highest
courts, If il should be adopted.
The members Of the commission say
that they have been guided in theory largely
by Prof. Selgman's ideas. They have
proceeded on the idea that those who can
best afford to bear the burdens OF taxation
should do so. In other words there Is TO
be a radical differentiation between the
rich and the poor man and AZ man grows
richer his pToportionate share or rate OF
taxation will increase. The first applica-
tion Of this plan suggested will PROBABLY
be as to inheritance taxes.
NAll that the members of the commission
will admit il that the changes on inheritance
taxes that they will recommend Will give
n 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 estate,
II the idea of making the rich pay heaviest
is carried out. whether Braueu IN
heritance tax will also be favored outright
the members of the commission decline to
say. ~
In the matter of an income tax all that
the members of the commission VIII ADMIT
is that the subject has been considereA
from every practical standpoint and thas
recommendations will be made advocating
in certain contingencies such tax. None
of the States at present imposes an income
tax The Federal Supreme Court decided
about ten years ago that direct Federal
income tax was not constitutional. 10
impose such a tax il within the powers
Of the States, unless their own consIitu-
tion- prevent IT, The New York State
Constitution it is said, does not. The
commission will point out the results oo-
tained by such a tax in England ana otner
European countries and will show Wnat re-
4 .Ns.sv, v,a1i in
from favoring such a tax, 1t ls declaren
that the commission will favor small
rate one that would not be felt materially
by those called upon TO pay n: Ihere
are so many large incomes IN TINS state,
j, is argued, that a small rate, graduated
however. according to the size OF the IN
comes, would work little hardship >.
The revenues from these new taxes, ~
Is said. will be so divided that the local
authorities will receive the larger part 80
that the tax on real estate, especially on
small holdings, will be lessened materialy;
Indeed, it may he recommended LhaI rear
estate up to certain value shall be ex-
empted II this is done the value OF the
exempt property will he so small that there
will he no attempt to evade taxation py
uvdng up realty OF conslueraDie Vaiuo
into very small plots and among number
of owners
The commission will cease to exist after
January Is. Its powers are solely those
Of recommendation. Its plan OF Work
recommend itself TO the sense Of public
justice and then to let the Legislature
struggle with the rest. The act appointing
The commission said that its purpose was:
To inquire into the subject OF assess
ment and taxation for State and local
purposes, the operation and effect OF laws
relating thereto, and the expedlency OF
revising and amending such laws 80 as 10
establish a more equal and just system
az raising necessary public revenues
Warner Miller, chairman OF the COM
mission, went out of town yesterday Tor
the Christmas holiday. Before he left ne
communicated with several members OF
the commission asking them not TO make
revelations of the conclusions Of the com
inittee because he did not nsider IL proper
~ tell what had been done in advance
Uf the submission Of the report Mr.. Miller
Fdmitted. however, that several radlcal
Ghanges would be recommended. and among
them graduated income tax. All he would
Eav was:
The whole subject OF taxation has been
Il. II. kaa IN