The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1911-12-21
TAXATION REPORT.
Continued from Page One.

paying any tax at all; If he deposits
the same amount of money in a sa9-
ings bank, where the chances are nine
to one in favor of foreign investment,
it will be taxed one half of one per
cent; but if he invests it in some agri-
cultural or industrial enterprise here,
he must ay from one and one half
to three per cent. Under these cir
cumstances is it surprising that Maine
capital has gone to deyelope other
communities Do you wonder that
our boys have turned their backs on
matchless natural resources, to flock
to those scenes of greater activity?
The illustration cited is but one of a
myriad. All along the line there has
been effective discrimination against
the very things that Maine needs the
most.
Rational treatment of our tax pro-
blem calls for nothing more than the
application of the principle of the
square deal" to the facts as we find
them. Among public service corpora
lions generally, the one price princi-
pie has been fully established. Re-
bates and determinations stand con-
demned. One mans dollar is exactly
as good as his neighbours. Our state
and municipal governments are moth
ing but corporations organized to
serve the people, and by similar rea-
soning the taxpayer should be re-
quired to settle only for value received
Taxes should be levied in proportion
to the benefits or privileges derived
from government The only thing
that makes this at all difficult is the
lack of specific knowledge as to the
facts.
The we'll intentioned rule as laid
down by our state constitution is that:
All taxes upon real and personal es-
tate, assessed by authority of this
state, shall be apportioned and as
sessed equally, according to the just
value thereof" This, as it has been
construed by the courts, gives the
legislative branch of our government
power to tax personal estate in &C
cordance with the dictates of justice
and common sense. There is no bar
rier, save ignorance, to progress along
however, the law makers are ham
pered by that ancient common law
conception of the term real estate"
prevailing at the time our constitu-
ton was written, viz: the land with
everything appurtenant thereto.
There are three separate and dis
tinct factors that may enter into the
value of real estate: First, the natural
or land value inherent to that particu-
lar piece of the earth's surface; sec
ond, the improvements due to the ex-
penditure of labor and materials !;
third, standing timber. Failure to
recognize the widely divergent char
acter of these factors has been the
source of much trouble This has also
been more or less aggravated by at
tempts to levy taxes irrespective of
fundamental considerations of justice.
In every normal community the
natural or land value SHOWS a con-
slant tendency to rise with the growth
of population. No injustice is likely
to follow there re, when this factor
is reckoned at its full market value.
Improvements, on the other hand, are
constantly deteriorating and require
of commerce is never worth cost, and
no reason is apparent why one parti-
cular class of the products of labor
should be arbitrarily exempted from
the operation of the natural law.
Cities and towns of western Canada
are assessing their lands and improve
ments differing percentages, and with
highly satisfactory results. The owner
of valuable land is practically COM
PEELED to develope his property in
order to make it earn its keep" and
both capital and labor are consequent
ly flowing rapidly into those provinces,
because profitable employment there
awaits them.
For the purpose of securing facts
and figures for the investigation which
should of course precede any such
change in Maine, the last legislature
made it the duty of all local assessors,
to record separately the land value of
each parcel of real estate, and to re-
port to the state board the land value
for each town, exclusive of buildings
and all other improvements. Faith
full observance of these requirements
will be of untold value to the state,