Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-03-03
TAXATION AND TAXES.

The question Of taxation is as old as
of discussion among economists and it
is daily becoming more complex.
Henry George was a modern advo-
cate Of a single tax theory which pro-
posed to levy tax wholly on land.
exempting ali other forms of property.
His was a beautiful theory and there
is uuctl in modern development 10 sus-
tain his contention.
on our eastern seaboard most all OF
the heavy factories have been trans
ferred TO the state of New Jersey be-
cause of the fact thar New York sought
20 tax factories on their value. while
New Jersey pursued in practice a pol
ICY OF pra c,ical tax exemption. The
tax commission OF Governor Griggs in
1897. reported that a rural population
in the counties Of Hunterdon and
Salem in New Jersey Of 10000 paid an
aggregate personal lax % s15.72a.2as
while city population in Hudson and
Camden adjoining counties Of 100000,
paid ss4ss52 lass.
Tables printed az the time showed
os New Jersey increased 40 per cent.
New York Increased but 80 Capital
invest r7en.s in New Jersey increased
in the same period 30 per cent and in
New York - Pennsylvania pursuas
the same general policy of exempting
personal property and this same inve-
wage earners in nat state increased
% per cent. New York gained but 10
In produce values New York gained 81
per cent and Pennsylvania 81. While
New York was gaining 4s per cent in
invested capital, Pennsylvania gained
So. Pennsylvania gained So per cent
horse power while New York was gain
ing 80. All this was largely due 20 the
difference in taxing laws,
The state Of Washington has had
considerable experience along this line.
600. 900 in moneys and credits. Less
than per cent IF this was listed for
taxation. Efforts to tax larger share
proved unavailing. Finally the state
abolished the FAX on this form of prop
erty. After three years trial the In
terest rates on money have come down
. the level in eastern financial centers
Before the rate in Washington was
from to 8 per cent above the eastern
rate The state ROW has per capita
circulation Of 1925. Schol bonds are
where the former rate wah 5M De-
positors no longer withdraw funds
from washins+ IN banks to he sent out
OF the state during assessment periods.
From the foregoing facts certain
well defined working principles are
ararent. tax on movable property
causes il To move Factories seeking
location are more favorably inclined to
locations where taxes are lightest A
tax on property that is conceivable
causes it to be concealed. Men who
have changed their possessions into
cash are looking for the most favor
able locations and the tax rates are an
important factor Moreover. a tax on
moneys and credits amounts in opera
ton to a penalty on integrity.
In these matters it is not a question
Of right and wrong-it is a question of
business policy. In the absence Of uni
form laws among the states on this
subject each state Is obliged to con-
form with reasonable limitations to the
customs of it's neighbors or suffer self
inflicted penalties. Neither theory nor
practice will set aside natural law In
these matters II Iowa taxes moneys
and credits and Nebraska and illinois
do not, the margin AZ difference in tax
rates is as certain to show up in the
interest rates as water is to seek a
cons1iluIl level
If Iowa wants factories and money
these factories should be taken into
consideration In the amending aad ad
jdstment Of tax laws.