New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-08
REVENUE BY BEGGING.

Nothing could more clearly show the IRA
tfonal-perhaps necessarily irrational-system
of levying personal taxes in this city than the
remarks OF the president of the Tax Commls-
sion on the methods of determining the assess
ment Of well known milliOnaireS. 1t is case
of guessing what the traffic will bear. IL a
rich man is reputed to be good natured. the
assessment is lacked UP. If he be cantankerous,
likely to fight TO alter the form of his invest
ments or change his legal residence the OIL
Gals approach him in the attitude of college
presidents begging for endowments, and re-
spectfuIly request the honor Of having his name
on their rolls for such amount as may please
him Mr.. O'Donnel says:
suppose if we wanted TO be severe we could
assess Mr.. Carnegie for personally above SoGOu-
600 This is the sum on which he has palo Ior
several years If we raised this figure Mr. Car
negie might assume, with good reason, that ms
assessment was abnormal as compared with MS
neighbors', and refuse to pay any personal TAX.
He might claim Pittsburg S his residence, ana
then Pittsburg would get the benefit of his per-
sonal tax.
Mr.. O'Donnel is wise in his day and genera
ton He is probably doing the best ne can 10
make productive law which puts premium
on the escape of property from the tax col
lector Neither do we blame Mr.. Carnegie He
doubtless considers q tax on S5G0OGOO OF per
sonalty ample in proportion to the personal
ton to the revenues. in consideration OF the
fact that in all likelihood he could, If he chose,
avoid paying any personal tax here at all. The
fault is with the system. And certainly tax
system which makes assessment largely de-
pendent on the disposition of the taxpayer, and
increasingly SO dependent in proportion to his
wealth and extension of business interests IS
absurd to the point Of ceasing TO be taxation
and becoming a mixture of public mend1cancy
and public eXtortiOn
A certain number of persons, generally Of
small property, especially widows and orphans
whose estates are in trust pay personal taxes
under compulsion when the assessors, putting
down names at random, happen to hit them. a
larger number pay because they do not take the
trouble 10 swear off, or will not change the
form of their investments, nor vote out of town,
or because as good citizens they want TO share
the public burden. These latter, Of course, viz
tually fix their own tax, and the assessors are
glad to let them The larger their business
operations, the easier is it for them, if they
desire to cover up their taxable personally by
loans incident to their ordinary transactions
and the more likely they are to hold untaxable
securities. The persons of small savings
chiefly women left with securely invested pro-
vision for their sustenance, are those most
likely to have their income cut in two by the
personal tax. This system may have been
fairly adequate hundred years ago. when the
forms of property We're simple and when in
small communities personally as well real
estate was in sight and easily valued But 1t
is under present conditions grOtesque travesty
of taxation. Some progress away from it was
made last year when mortgages were with
drawn from the schedule of taxable personally.
The whole thing should be done away with
and if the Governors plan for q legislative
commission is carried out, one Of the first
things considered should be the personal tax
law, which is a combination of injustice and
FARGO