New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-12-05
"CONFISCATION'
A Denial That 1t Would Ensue from
the Proposed Land Tax Law.

To the Editor of The Tribune.
Sir: Professor J. h. Clark, In his inter-
esting letter published in Saturdays Trib-
une strikes what appears to be a keynote
of the opposition 10 making the tax rate
on buildings in this city lower than the rate
on land. He expresses fear lest the
measure to lessen gradually the rate on inn
provements till it is only half the rate on
land might become so popular IN operation
that a further shifting of tax burdens from
improvements 10 land would be demanded.
such discrimination between land and
buildings Professor Clark characterized
by the rather harsh term 'conhscation.
He even says that in this respect lit far
overtops the confscations Of the French
Revolution"
1t might be interesting 10 know whether
Professor Clarl, regards all similar changes
in governmental tax policy as being con-
nscatory I'm character. Was it con-
fscation to abolish the ancient poll
tax and To collect the equivalent reve
nue. from property? Was II confsca-
ton to Increase the liquor license tax?
Was It such TO impose a new tax on stock
transfers, while leaving the transfers Of
OtllFI Il TINS ~ III Dll'l y announcement 80
the corporation tax I'm this category
Should q policy of fixing lower import tar
ifs on necessaries of life than on luNuries
bring up visions Of the French Revolution?
Every intelligent government makes at
least some study Of the incidence OF taxa
tonic learn whether the owner Of the
property really bcarI the burden imposed
upon him or whether he can SHIFT II to
some other back. Every government pays
some heed 10 the social results of its iscai
POLICY Few would argue that Tor the sake
Of uniformity liquor stores should be eN-
emptcd, AZ are churches. or that sugar ana
hides should pay the same duties as DO
champagnes and laces.
The chief difficulty win real property
taxation is that lands and buildings have
long been dealt i'm together and have been
CLASSIFIED. conveniently but unscienuhcally.
under one undiscrminatine term, as real
estate" For this reason many fail TO see
that no two forms Of property are governed
by more essentially different-by more
rearly opposite-econOmic laws These dif-
ferences should be made clear. so that an
intelligent policy of taxation may be pos
sible. 4 few of the obvious differences may
be pointed out here.
/ The quantity of land within given
area is practically fixed by nature. The
number Of buildings varies greatly from
year TO year
. \ high tax rate Oh buildings tends to
check the building supply High taxation
of lands has no such effect. In fact land
held out of use H. brought into the active
market Land is about the only form Of
wealth Of which the supply available Tor
actual use is increased, rather than dimln-
ishcd. 10y taxation.
8. For ,hc reasons Just given. taxes on
buildings are reflected ia rents. Heavier
taxes mean ever buildings and higher
rents. That is. improvement taxes ere paid
by the tenants Land taxes. ON the other
hand must be- paid 10y the owner; they
cannot De shifted.
4. Building values are produced ana IL
creased By the industry and enterprise OK
the individual owner. Land values arise
almost wholly from the growth Of me COM
munity and from its pressing need OF
places in which to 1--we and work. Ne"
York land values go mp over 500 for every
additional person on the census rolls.
:. Building- tend To doteriorate from year
10 wear; land tends To grow more valuable.
With All the immense labor and wealth put
into Ncw York building operations IN the
last century. the total building values are
nov little moro than half OF the total lana
vaIucs which nave ucon created oy the
marvellous growth ol the town
G. Increase 600 the actual tangible u'"-
fuI wealth within the city is checked 10y a
lax that discourage building \ 'aN ON
land does not have this effect
e. Expenditure of public ''''n''3-'--
p,ciallv upou par'ts. schools. docks AMI
otncI rcrmau ut improymouts-'a1 '
direct mc..as. bon land ,olu-- Euld.ns
values are not benefited IN the same way.