Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1912-05-06
T. D. Rockwell, State Tax
Commissioner Gives Views
On Taxation
ABOLISH PROPERTY TAX
Tax Reforms That Will Be
Presented to the Next
Legislation

1t is a matter of much congratula-
ton and pride to the members OF the
state board OF taXcommissioners that
the subject of taxation is now being
given more consideration by the peo-
pie than in previous years II has
always been subject Of wonder ana
astonishment to the writer that a
question that so yitaily affects such
a large class OF people should nave
so little of their study and considera-
ton. Men generally regard taxation
as a necessary evil, and when this
conclusion has been reached, the Sub
ject is dismissed without a thought as
to means of measures for the ameli-
oration of the burdens.
Long strides have been made in
tax reform all over the United States
in the last few years. and the state
of Washington has not been behind
the others in it's work of solving the
great problems going to make UP this
vast, vital and absorbing subject OF
contributing to government expense.
But the stumbling block in our way
has been and always will be, until
it is removed by constitutional re-
vision, our system of taxing our
property by what is known as the
general property tax system This
system is founded upon the idea that
oil Of
scription. can be and should be taxed
at uniform rate. Amy student OF
political economy knows that this IS
a pure fiction, because absolutely i'm
possible of practical application. That
all property should be taxed at a
uniform rate is a consummatiOn most
devoutly to be wished, but that 1t Is
not and can not, must be apparent to
all students. If all property was Of
the same nature or kind. the problem
would not be difficult; or if all men
were honest and would make true
returns. we might reach nearer to
contamination of this theory. But
neither of these hypotheses exists in
fact. with the result that certain
classes of our property Chat which
we know as tangible) is always taxed
at some proportion of its value, while
other classes (known as intangible)
escapes altogether. This, of course,
is not true with relation to the prop
erty owned and controlled by public
ri hnjOy
assessed by central board on
a stock and bond physical value and
gross earning basis, more nearly pays
it's lust proportions than other classes
of property by reason of the fact that
all of the corporate assets are assess
ed and taxed upon strictly sclentlhc
basis. and whether the property ex-
lists as tangible or intangible. its value
ia reflected in the market price of its
stocks and securities.
On Credits
The legislature of 1907 saw fit, in
its Judgment, to exempt from taxa
ton all that class of property which
we know as credits, not however. be-
cause it was thought it should not be
taxed. but because it was known that
It couldn't be taxed. This class of prop
erty represents at least half of all
the property in the state OF wash
ington. and merely because OF the in
equality of the general property tax
system the legislature concluded it
was better to do without the revenue,
and save the wear and tear on the
consciences of the owners OF this
class OF property.
We are not opposed to this idea
as long as the general property tax
system prevails, but we do think that
while exempting the property OF the
rich investor in stocks, bonds. notes,
accounts. mortgages, ct cetera, that
we should also give some relief TO
the farmer and the mechanic and the
man in more moderate circumstances
by exempting farm Implements me-
chanics' tools, and household furnish
ings. The taxation of this latter class
of property has always been farcicai
in the extreme. The average assessor
in attempting to assess nousehoiu