The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-16
INCOME TAX PLAN
EYOKES OPPOSITION
Mills Committee to Discus,
Various Schemes in Eyccn.
tive Session To-day.
NOT YET CON MITTEb

Senator Ogden L. Mills. as ch,lirm,,
Of the Legislative committee which has
been hearing suggestions on how best 10
amend the tax laws in order to re,
enough money to meet the steadily In.
creaslng expenditures for cost OF govern.
ment in city and State. has called an
executive session Of the committee at hs
home. . East Eighty-fourth street. a,
10 80 O'Clock this morning to CONSIDER
two or three new taxation schemes.
He said yesterday he wanted 1t under.
stood tina the committee liz not vet com.
mitted to any plan, but desires 70 cor
relate the Information laid before It with
the intention OF asking counsc Ia draw
UP tentative plans that may I've discussed
publicly before the committee makes a
| report to the Legislature. The chief sug.
g~estions 10 far made are an income ta1.
a habitation tax and a classified per.
sonal property tax.
Senator Mills took occasion to deny
an inference drawn from a remark OF
his on Thursday when he was discuss
ing some OF the matters which the COM
mittee is considering. According TO one
published account Senator Mills an.
nounced that the would re.
lieve public service corporations from
the special franchise tax which they nov
pay and would in lieu of that impose
upon them a tax of 3 per cent. on their
net earnings, a scheme which would
mean the loss OF several millions Of dol.
lars to the State.
What he said, as a matter OF fact VAS
that a suggestion had been made that a
tax OF 1 per cen be laid on the net
! earnings OF mercantile corporations,
which now pay 81, 900. 900 in taxes under
the general franchise act. At ! per
! cent. on their net earnings II IL est
mated they would pay about sS."O",o"o
Should they be forced to pay this ! PEI
| cent. on net earnings they would I've ex.
empted from the present general fran.
chise tax.
Senator Mills made II plain that this
| suggestion has nothing to do with public
service corporations or the special fran
chise tax which they pay. The CON.
mittee Is not considering publc srv1ce
corporations at all
Ii is practically certain that counsel
for the committee will he asked to dr,f'
an income tax bill and that il Will make
provision for a Hat rate on all Incomes
above $500. Although the great ma
iority Of witnesses before the committee
have urged an income tax, and most ~
them "A graduated income tax. II may b.
said that members of the committee are
| SctpIlCdl dDOut ktlllHs ven IL lAhi INV
income tax through the Legislature.
A.. c. Pleydell. secretary Of the Tax
Reform Association, who was on the
stand yesterday, is practically the only
witness who declared his opposition 20
an income tax. but IL is known tha,
throughout the State there IL a well
defined opposition to this form Of taxa.
ton. In the opinion OF committee Nom
bers any income tax bill is going to hav.
a. 81 .s-,. ayatsFty IA NNAvh cha - :
lature. and they regard a graduated ~.
come tax as an impossIbil'ty, at leas
for the present.
Mr.. pleydell was also about tho ont
! witness who maintained that real &c
tate can bear additional tax burdens an
he refused TO accept the assumption ~
the committee that New York city mus
make provision to meet additional bud
getary expenditures Of about S3j, 600. %,
during the next decade. He said Il VS.
impossible TO consider new scheme ~
taxation without considering som,
means of keeping down expenses. Nn"i
Senator Mills pointed out To him 't
New York city must meet its d.h'
charges n must provide for the ro'r'
ment of bonds issued to pay for puts
improvements MIR. Pleydell said thai
real estate benefited by public improy.
ments and should bear the added tx.
pense.
Former City Comptroller Herman A
Metz denounced the corporation tax lte
as unfair and then proceeded to show ~
unfairness by citing his own case n.
said he had the offices Of two ~ his
companies located in Esopus 90 he voUit
escape the higher tax that he would b.
forced to pay II he had them In Ner
York city. He urged that the Leg It
ture make It impossible for him 70 rval-
his taxes in this way.
The mex public hearing of the com.
mittee will bs held 10 80 o'clock Mon.
day morning at the Merchants Assoels-
ton.