New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-09
BURDEN IN STATE
NOT EQUAL, HE AYERS
J. J. Merrill Declares 81, 100000
a Year More Should Be OBJ
tanned from Corporations.

b An adjournment was TAKEN yeBIeIohy
r until Wednesday.
Mr. Schif strongly favored the abol-
ishment Of the present tax on personal
q property. lie suggested as substitute
sources OF revenue stamp tax, to-
gether with an income tax, unless the
former was found to yield sufficient
revenue. The banker declared the per
sonal tax was a failure because II was
not being equitably administered and
did not produce revenue that would
justify its continuance.
an my opinion" he said. "other
forms of wealth escape taxation, while
personal property ia unduly taxed.
Merchandise, art collection. held by
wealthy amateurs, escape taxation. Cor
porations with headquarters in New
York are heavily taxed. In other parts
Of the state they escape. There is no
attempt to assess taxation equitably on
personal property"
Senator Mills asked the witness II
he thought it would be possible 20 col
leot a per cent tax on personal prop
erty. Mr. Schif said if such a tax
was imposed many wealthy men would
leave the state.
Stamp Tax Easily Collected.
In suggesting remedies, Mr.. Schif
said:
II should substitute. under the man
agement of a central bureau in the
state, modest stamp tax-say, two
cents on checks and 20 cents and 81
on due bills. Such tax is easily col
lected. Every country in the world
has such Il tax except the United
States We had a Federal stamp tax
in 1898, and | consider II a success.
Such stamp taxes might not yield
sufficient revenue. | would suggest an
income tax with very low exemption.
IL should reach those who do business
in this city and live beyond its borders.
| would have the income tax collected
from the rccipientt, not at the source.
This could be done if adequate pen
alties were provided for attempts at
evasion. The income from real estate
ought to be exempted from the income
tax because real estate is taxed by it
self"
William NJ. Greve, vice president OF
the Realty Associates Of Brooklyf. was
the first realty man of that borough to
appear He said that the real estate
situation in Brooklyn was absolutely
dead" due to excessive taxation. Cor
nelus q. Kolff, real estate broker Of
Richmond, testified that real estate N
that borough was taxed for all it would
stand, and that any increase in taxes
was bound to depress property values.
John J. Merrill, Deputy State Tax
Commissioner, caused a laugh when he
said that if there had ever been a tax
law that wasn't evaded it was made in
Heaven. He said the state should get
$1,000 900 a year more out of the cor
poration tax, which many corporations
succeeded in evading The corporations
C the state even devised way to
evade the Federal income tax, he aaid.
Says Franchise Tax Is Confusing.
Mr. Merrill testified at length and
described all the various forms of state
taxation. The franchise tax law was
ambiguous and confusing.
81 should say that there are not ten
lawyers in the whole state who under
stand the franchise tax law" he said
az there is any one thing | should
like 20 impress upon this committee
more than another il is that you leave
as little discretion as possible TO the
tax assessors. Give them no latitude
north, east, south or west. Make a law
so definite that you can get brief on
anything"
MAKE it fool proof" suggested As.
semblyman Everett, of st. Lawrence.
That's just the idea" said the wit
ness.
Henry de Forest Baldwin, represent
ing the Society TO Lower Rents and
Reduce Taxes on Homes, read a long
statement on the single tax theory, TO
the effect that land values should be
made 20 bear all the taxes to meet the
city debt service. He said it was abb
srrd to talk about land values in this
city being taxed more than they can
bear. Land values had increased since
1905 more than 81 100000 900, he said.
Referring to the personal tax, he said !:
Throwing out the dragnet TO catc1
persons liable 10 pay the personally
tax j. always accompanied with a
great display Of millionaires on the
list. There is pretence that the ad
ministration is getting after the rich,
but the sad truth is that the whOla
thing works on, as most oppressive 20
the poor and to people Of small means.
The really rich people have never
been, and never can be, reached. Thee
can get advice as TO how they should
invest
Realty Still a Good Investment.
Max Morgenthau, jr., former presi-
dent Of the Real Estate Association ci
the State Of New York. declared that
while real estate in certain sections OF
the state, especially in New York
Buffalo and Rochester. has been suffer
ing from oyer-taXation, il was oniy
fair 70 say that in most sections OF
the state real estate is still considered
most desirable investment and has
increased in value even during the las;
Few years. which have not been consld-
cred prosperous. He took exception to
the almost unanimous opinion ex.
pressed by all the witnesses so far tha-
II was not feasible 10 tax personal
. property.
AS a matter Of fact" he said. e.,
would be perfectly easy 10 collec.
taxes OF personal property in New
York City and state If we would sim.
ply remove the utterly foolish nroyi-
sion in our present tax law allowin,
an exemption for debts. say tais i,
utterly foolish, because have yet Ia
hear good argument in favor Of al.
lowing man 70 deduct his debts
against his personal property except
. for the purpose Of allowing him 10
ovade taxation"
NJ. Morgenthsu declared in favor OF
state income tax with a minimum x.
omption Of $500. and graduated as is
fle Fefernl income f1v an "a .o mo = d.,