New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-01-16
TAX REFORMS RADICAL.
TO LEVY ON INHERITANCE
Commission Says Make Corporations
Pay on Real Estate.

The special tax commission which has been
wrestling with the problems Of taxation in the
state for some months. transmitted its report and
proposed legislation 10 the Legislature at Albany
yesterday. The report does not go into the ques-
ton OF taxation OF personal property, but decides
In favor Of graduated inheritance tax. Several
other radical reforms are recommended. One of
these Is that corporations should be taxable only
their real estate and franchises, IL they hold
eny. Another recommends the continuance OF the
stock exchange tax and advises the single rate OF
III cent the earnings Of all public cor
porat.ons- The report also opposes the imposition
of Inheritance and all similar by the fed
erel government. except where there are cases Of
extreme emergency. The question Of equality Of
taxation in relation TO stat and national revenues
is gone into ct great detail.
The report also proceeds 10 point out the develop
men Of taxation for state purposes. and how, dur
ing the last twenty-five years. New York has final
ly reached the point of complete separation Of
source between state and local revenues, deriving
all the state taxes from special taxes, sometimes
known the indirect taxes The local revenues.
Il Ii pointed out. have remained precisely the same
they were at the outset
On sll Of these recommendations the commission
agreed unanimously. Several supplemental reports
however. were appended. IN which only minority
OF the commission agreed. Among them
On q graduated habitation tax and another orovid-
ing for the reduction OF the tax stock exchanges
TO per cent $780, and submitting bill for an
extension Of the tax to produce exchanges and
similar exchanges.
foIlowsi Ex-senator Warner Miller, chairman;
Professor Edwin r. A seHsman. Samuel H Ord
way, Thomas T. Grady, George R MaIby. Charles
w. Mead. Sherman Moreland. George n Palmer.
Martin Saxe. Arthur c. Wade, Merton E Lewis.
Charles 3. Soshart and Spencer K Warwick.
This report, after a brief introduction. says:
This commission believes that it's duty is TO CRAP
Pic with the situation which faces the state and
The taxpayers, and to endeavor to attack the prob
lem directly, instead Of resorting TO mskeshifte and
TO temporary expedients or raising slightly addi-
tionAl revenues.
The report deals with the subject of equality Of
taxation. and points out that the chief detraction
from the principle OF equality is found in the local
TAI personal property. The effect Of this is
gone into In detail and the following conclusions
Ere arrived at:
.rs:.T p there has been gTsaUsl ana nd s.ssas
IT. s sSds the
ThfdSThat the greater thu, amount Of personal
Gtion or reduction.
Fourtf-That the burden falls heaviest upon the
residsnts of this state. and principally upon the
Fifth-That non-r.sidents .nd It easiest to escape
sixth-That the collection Of the personal prop
erty TEX has become more and more difficult.
OF the entire revenue OF the City of New York OF
approximately s25eo0.00c in 1908 only about $780,
600 or 100000 collected from the tax on per-
sonal property of individuals.
The report goes into minute details regarding
suggestions for the inheritance tax Three classes
of rates are recommended per cent, IN the case
Of near relatives; per cent, in the of
distant relatives and per cent, in the case Of
most distant relatives and strangers. These are
called the primary rates and they apply to the
frat 900 over the exemptions The exemptions
SO 600 In the OF the immediate family $3.50
in the case OF more distant relatives. and 500 IN
the case OF most distant relatives and strangers.
There is 6 further provision, however that in the
case of the direct relatives. there shall be no tax
ct all where the entire estate does not exceed
$1,000.
On the over SIS 600 and I'D TO 100000 twice
the primary rates levied; on the excess cs
100000 above the exemption and up 10000 three
times the primary rates; on the excess % S50oQoo
above the exemption and up to $4,000 four times
the primary rates. On all amounts IN excess Of
the first sl.0o00OO above the exemption five times
the primary rates-that is. The highest sums
the maximum rate for direct relatives IA 5 PER
cent; for more distant relatives l5 ger cert, and
for strangers % per cent These rates de-
clared 10 be more moderate than those existing IN
many other ountries.
On the subject Of taxation of corporations the
report recommends that IN lieu of rIe varying and
confusing provisions governing public SER
vice corporations there should be a single rate
Of IL per cent upon the gross earnings of all
public service corporations. striking out the pro-
visions fer taxing dividends The commission
aleo recommends that the tax upon trust com
panies snc banks be increased from l per cent
TO III per cent but that the assessed lsue OF
the real estate owned and occupied by them
should be deducted from the value Of The capital
stock.
The commission recommends that the stock ex-
change tax be continued, but that the method of
imposing the tax be changed and that the tax be
assessed on the market value Of the securities. in
stead Of on the par value, the original bill
ternplated. The proposition to extend the tax
transfers on the Produce Exchange and similar
changes Is considered and the commission urges
that great weight ought to be attached TO this
argument The commission not able to agree
Tn tie precise terms OF such til and the sub
sect Is therefore only mentioned.
On the subject of indirect taxation, the commits
zion reports fully and says:
We do not indeed, for moment. believe that
the state should revert TO the former method OF d.
rect property taxation. but we believe that the
again be secured in some other way At
present the rates OF taxation all the state
are nxed In the various laws and not easily
Your commissioners believe that difficulties can
be avoided by providing that whenever the sur
Plus arising from state revenues amounts to more
cess shall be annually returned 10 The local dvis
ions. BY this provision not only Will an unman-
profit from any excess OF state revenues and elias
dcsty will again be restored TO the whole budget.
Various supplemental reports follow the main re-
port, In which only minority OF the commission
concur. Senators SAKE and 0rdway and Professor
6e,!gInEn offered report , a graduated habita-
ton tax. The report points out why the commits
eion does not believe IN rigorous system of
assessing personal property. and also why It does
not at the present time favor state income tax
Among the supplemental reports is one favoring
the reduction Of the tax stock exchanges to one
cent 500 and submitting bin for the extension
of the tax to produce exchanges and similar ex-
changes This report was favored tS Senators Ord
way and SAKE and Professor Seligman.
OF the appendices to the report the most i'm
portant detailed statement of the workings
Of the personal property tax in New York City
and an account OF the systems Of taxation in the