The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-10-17
WHAT Is TAXED2

Taxes are Of course charged off by all business
enterprises as item In the list of fixed ex-
penses to be met by earnings. The individual.
although he may not keep his personal or his
household accounts In ledger style. regards the
amounts that he must annually pay to the State
and TO the local government as a fixed charge
To be met by his annual income. II the taxes arc
too large, his other fixed expenses cannot be met
and he. the business enterprise, must face
the unpleasant situation OF having his balance
on the wrong side Of the ledger.
This fact is too often forgotten In the problem
Of adjusting taxation AS Edgar Sydenstricker
points out in his articles on Taxation in vir.
gnia" which have been running in The Virginidn,
all taxes must come out Of the income OF the
individual or the enterprise taxed. All taxes. he
says. are taxes on income. If II were possible,
the ideal system would be to tax income, whether
IT be wages. salaries. income from stocks and
bonds. profits from business, or the earnings of
corporations directly. Instead of that taxation
Is property. license. franchise, polls. etc. be.
cause property and license and franchise and the
like are considered the most tangible measures
Of income or earnings. 1t Is evident that In using
these indirect means of measuring the income
OF taxpayers. there Is the constant danger OF
emphasizing the Importance of one kind OF
measure over the other, For example. the in
dividual who Is making every effort to a
home. paying for 1t on the installment plan out
OF his earnings, is taxed for the full assessed
value Of property that he does not yet own by
tha Of he
Here Is an Illustration of the principle which
Mr.. sydenstricker has laid down. and an ex
ample Of the use OF property as a measure o
the Taxpayers income when the measure indi
Gates an income much larger than 1T really is
Again. the danger is that In taxing all real ant
personal property of individuals, his income II
measured more than
The Significance of the point which Mr.. syden
stricken has emphasized cannot be too carefully
regarded IN any effort to make our tax laws
more equitable In their operation. A great dea
has been said Of the tax inequalities existing
In Virginia which are due to the wide difference
In assessments in the various counties and cities
As long rs we are TO retain the present system
OF taxation IL should be enforced In such wa.
Il
ties That Ia very evident What is not so evi
dent but what is of vastly more meaning to thu
taxpayer. Is that in our system Of taxing every
thing In sight and all out of sight that can b
reached, the source of all taxes, which is tn
earnings of the taxpayer, shall not be carelessl,
and unfairly measured by the various means o
reaching It. Too often the income of the person
! Of moderate means is exaggerated by using un
fair measures.
The amount or value of the property a person
may own does not usually Increase in direc
ratio to the income he receives. The poore
taxpayer In most instances has much more prop
erty In proportion 10 his income than the richie
taxpayer Or to put 1t In another way, wealth
for purposes of taxation consists in regular IN
come not In non-revenue producing property.