The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-03-23
+ SATURDAY. MARCH %. 1907
There is much mercy In the judgr
ments Of God, otherwise His Justice
would be ncomplete.-ssnd.
\ The PRINCIPLES Of Taxation.
II In commenting on some remarks ni' fl' @

The Principles OF taxation l on
n In commenting on some remarks Q
ours concerning the PRINCIPLES OF tan
X alton. the Norfolk virginian Pilot says:
..virrinia mas made some progress
towards reform in the matter fun
equal and double taxation, but much
& more remains to be done. The problems
involved in a satisfactory and equitable
" ad iustmcnt are very difficult. The late
II CONSTITUTIONAL Convention iapproa cheu
N them in an earnest and #intells gent
spirit and undoubtedly corrected. IS some
v Of the more glazing evils heretofore
existing. But the question Of reach
ing the personally hidden away in
transferable evidences OF value was
too abstruse for the wisdom OF, That
body Of Virginia statesmen, ana the
fact lis patent that millions OF STOCKS
and bonds are never listed
Virginia has made great strides in
this direction, and in some cases has
~ applied the true principle. In the case
s Of her railroads. In addition to the tax
$ On their physical property a special
II tax Of one per centum on the gross
& earnings is levied as n franchise tan
and that is in lieu OF all taxes on the
stock, so that the stock in the hands
4 Of the Individual holders Is exempt,
In the case OF banks and trust COM
panies, the total stock issue Is as.
I'll sesscd at It's market value, ana the
bank or trust company pays the tax
for the stockholders. But the bank
d Is allowed, very properly, to deduct
from tho aggregate value Of the stock
the assessed value Of its real Ees state
rs otherwise taxed. 5 NJ
s# That principle should be applied ir
8$ taxing all domestic corporations. This
rs assessor should ascertain what are thu
X taxable values OF the corporation II
Virginia and assess all such values
however ascertained, at the headquar
n tiers OF the company, and look to lth'
company instead of toNthe individual
3 stockholders for payment In this wa!
every stockholder would DO reached
and taxed, no matter where he nigh
be- and he could not dodge by hidinl
his stock in a vault.
i#8 If that rule We're applied IN ever
State all stocks in tho hands Of indi
yiduals should be exempt from taxa
ton. If astockholder in aNirgini
bank lives in Maryland and the Vii
ginia bank pays his tax for him,
would be double taxation for the Stat
35S:o OF Marylapd. to impose All additions
tax on Ills stock. By the same toxic
Virginia could not fairly tax any stoc
n, in a Maryland bank which might !
held in this State If the bank hf
S5f already paid the stockholders tax
the State Of Maryland. ~
! This is made more apparent by citir
the land tax II a citizen Of Marylal
owns a tract of land In Virginia n,
has the deed in his possession, t
Maryland authorities would nev
; think OF taxing han on his deed, ar
vice versa, Virginia would not THU
OF taxing one OF her citizens on la
lia4 which he owned in Maitland.
55sf3fts But that Is an old and veXatio
question, and we serve notice on
opposing contemporaries that We sh
not discuss 1t. All that we now
sst upon is that the place to ASS
3sss and tax the property Of corporate
Is vt headquarters. Make the corpo1
III ton pay for the stockholders, and II
s let the stockholders alone. j + all sta
SS8sI would pursue that policy they wo
It save themselves deal Of trouble
u, collect more revenue.