The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-01-13

two, but not as complete. The rats
in England is twenty per cent Of all
over ten per cent. In 9TH
er words, a property owner gets he
cost Of his improvements. the cost Of
the land. plus ten per cent OF the
profits, and then pays the Crown one
fifth of the remaining profits
We refer especially to this unearned
increment tax because 1t represents
the most advanced ideas Of taxation
Personal AK.
1t is under the multifarious forms
and drag-net methods to tax personal
property that one ecOmeS ~beWlldered
and amazed. Personal property is So
%variously estimated by different per
sons that 1t is almost Impossible To
arrive at a uniform vaiuation. Aod
to this the readiness to omit and con-
ceal it, stimulated by the conviction
that it is almost universally done by
others. and the failure to secure Il
proper listing is inevitable. A refer
ence to our own tax books will reveal
how utterly inadequate and unjust
these systems are, and this seems TO
have been the universal experience OF
every country and State where gen
eral property has been made q sub
ject of assessment.
Take, for instance, the state OF Cali
fornia, which listed:
Real Personal
Estate. Property.
1S7o.......... SIT 100000 ~$2o0.GNo,oo0
1851. 191 .OC0, OOO 164,oG0.0M
This shows that after a period Of
fifteen years real estate had increased
in California 1914, 10000 and that
personal property had decreased in
the, same period SIS, 10000
Take the State Of New York, which
tells the same tale:
Real Personal
Estate. Property.
1871. ......... 81 ,599;9e0 GOO 1852 coo
1S78........ ,373,41S.OOO 3G4, go W0
1sss.......... 3d2s IS 0 Gee 346,6ld00
This shows an increase in the tax
able real estate for a period of twep-
ty-two years of $2.026, $4,000 and for
personal property a decrease OF $44,-
$4,000. There seems to ave been
! this trouble from the beginning and
everywhere and to SO sreat an extent
that taxation on personal property Is
being abandoned as a failure.
Prof. Edward r. A. Seligman, Of
Columbia University, who is today the
greatest authority on this subject in
America, if not in the world. says that
it has proven itself TO be a failure
"historically," Theoretically and
"practically," everywhere that it a
been tried. He says: That America
seems to be today the only great ma
ton deaf to the warnings of history"
THAT it presupposes there is an
ascertainable dednits surplus Of as
sets over liabilities" .
Unless a taxpayer can deduct his
liabilities from his real and personal
property, he is taxed not OH his abil-
fty but on his liability
It is now claimed that property
IS no longer a creature Of t~ax-paying
I~capacity."..
THAT the test row is not the extent.
but the productivity of wealth."
Practically.
Practically it is one of the worst
taxes known to the civilized world.
because it attempts to tax intangible
as we'll as tangible things. It i'm
poses "a double tax on n man and
gives entire immunity to others. It's
retention can be explained only
through ignorance and inertia.
The taxation of general or personal
property has been abolished by all
countries except Switzerland, Austria
la and the States OF our own country.
We have been wonderfully inter-
ested and greatly amazed to find upon
a deeper study Of the subject how
general our own difficulties have been
: to those OF other countries and
States, and how they have turned to
t the income and Inheritance tax to
take the place Of a tax on personal
-~property.
: The Federal and State governments
are beginning now to use both OF
these sources with telling effect.
Income Tax.
The consideration Of the income
I tax brings US at once ~squarely up TO
the new idea Of taxation, which is
. largely the result Of the social re-
. forms that are agitating the world
|. and appear to be rev%olutionizing gov
ernments In all relations. including
: the methods Of taxation. We have
referred to the large estates in Eng
> a n that were for centuries exemnt
q on account of their being unproduct-
= i've; OF the idea that property only
q represents the individuals worth.
, 0 a third and last idea is work
q ing It's way. into the minds of political