The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-09-05
Declares Governor Dix OF
New York, Who Emphasiz-
es the Need of a Reciprocal
Act Between States.
SPOKE AT MEETING
ON STATE TAXATION
Attempts to Tax Outside
Capital More Heavily than
Home Capital Must Cease,
Executive Said.
(National News Associatinn)


RICHMOND, Va, Sept. 5.--"The
States must come together. and the
line of common action must be the
cessation of attempts to tax outside
capital more heavily than home capi-
tal," declared Governor John A. Dix.
OF New York, before the conference
on State and Local Taxation, In ses-
sion here today. Governor Dix's ad-
dress on "State. County and Taxation"
which had been looked forward to by
the delegates because of the recent
enacted mex tax code in New York.
emphasized the need Of reciprocal
act between the states for a multitude
OF reasons. both generous and selfish
from the individual states standpoint.
Modern industrial conditions tend
to break down state lines" said Gov
ernor Dix. THE map. to be useful,
must take in the whole nation. Busi-
ness men are no longer content with
local trade. All hindrances to business
are vexations and every effort is be-
ing made to overcome them. Reduction
In the cost Of product is the aim and
cutting off of fraction of percent
is looked upon as a victory. Taxes are
an artificial hindrance to business and
the imposition of taxes is therefore
to be scrutinized with the utmost care
by the State levying the tax"
Spoke a. Tax Payer.
II have no sympathy with the the
ory OF taxation which finds expression
in relatiatory legislation" he resumed
Because some sister State imposes
unjust taxation upon our citizens do
ing business there is no reason, to my
mind, why New York should impose
unjust taxes on the citizens of that
state doing business in New York.
Rather should New York set the exam
pie OF dealing justly and by argument
and persuasion seek the repeal of the
unjust law. Every tax law should be
carefully considered both as to its ef-
fects within and without the state.
1T is comparatively easy to consid-
er the effect within the state and un-
fortunately that is the only side Of the
question which usually is considered
at all. II the tax affects business out
side of the state adversely. our legis-
lators. II we may judge by their ac-
tions and their works, seem pleased
rather than saddened. This. suppose.
10 on the narrow view that another
mans loss Is our gain. particularly
when that man is our business rival.
But thoughtful business men know
better. They know that anything that
would raise the price of fuel in Penn
syNania would through the subtle and
sensitive pulses of business and cred.
It, affect business everywhere.
Taxation Is an element in business
cost. II taxes are increased unduly. un.
justly and unequally anywhere. all bus
iness. not only the business most init
mately connected with the thing taxed
but all business will be affected to
some degree.
Burden on Real Estate.
Real estate. IN the nature of things
must bear the chief burden of local
government. In addition to real estate
taxes. there are too great groups OF
taxes: that Is, taxes on business and
taxes on investments. Business, how
ever. Ia not so Axed. Business car
move. and business is always watch
ing for a chance to improve conditions
and reduce cost. Natural advantages
we cannot alter and natural advan
tages will always attract business. Blu
taxation. unless 1t be even. just ant
equal, IL hindrance which business
will do its best to escape. And since
business no longer confines itself t.
one locality but extends over man!
States, there surely Is call for Stat,
nomity in taxation. The call for fed
eral interference in business is reall!
. cry for relief from clashing state at
tempts at unfair and unjust taxation
of business. That is why the effect o
each tax measure outside of the STATE
should be as carefully considered a!
its effect within the State.
what has just been said concern
Ing taxation of business applies Will
even greater force to taxation of in
vested capital, Though business i.
largely free to establish itself wher,
the conditions are most favorable. cap
ttal for investment purposes Is still
freer. A slight increase of taxation OIL
Investments will stop further invest
ment and frequently drive out invest
ments already made. The states mus
come together on this subject. and tn,
line Of common action must be the ces
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