The sun., 1915-10-28

tho requirements Of the city without
changing the rate OF the tax on real
| estate.
| II Is q mistake to assume that such
habitation tax in effect would amount
to an additional tax upon dwelling house
property, or that 1t would be more pref
| judicial 70 the owners Of dwellings than
| other forms Of taxation OF residents OF
| the city. Every tax upon residents.
whether II be direct tax upon personal
| property or an income tax or habita-
| ton tax would increase the cost OF liv-
| ing in the city and would affect the
value OF dwelling house property IL IL
| should drive residents out Of the city.
| Similarly, every tax upon business In
| the city would increase the cost OF do
| ing business in the city and would In
| juriousiy AFFECT the owners OF real es-
| tate used for business purposes tf IL
should drive business out Of the city.
As the proposed habltation tax would
apply to all actual residents OF the city,
except the relatively poor, and could be
enforced uniformly and fairly. its rate
would be low, and I am convinced that
more revenue could be obtained from
such tax without driving away wealth
or business and without impairing tho
value OF dwelling house property than
from any other practicable plan that
can be devised
Possibly II might be practicable and
wise. In addition to the habtation tax
which have suggested to impose tax
at q low rate upon salaries earned IN
the city and upon the profits OF certain
glasses OF business carried on In the
city. However. such a tax upon salaries
and profits would be subject to dii'icul.
ties and objections which cannot be con-
sldered except in connection with com
prehensive plan OF dealing with the en-
tire problem of taxation for local pur-
poses.
II has been suggested that part OF
the required revenue for State ard local
purposes he raised by imposing a state
income tax. A proposal TO tax every
body according to his income or ability
10 cont ribute 10 the expenses OF govern
ment sounds very fair and attractive
but any attempt OF "A state TO carry out
this proposal Ia concrete form would
bring to light very grave difficulties and
objections due to our system OF govern
inent and our governmental methods
The national Government may have
the power TO enact a workable income
tax law that can be enforced througlou
the country with a reasonable degree OF
uniformity and fairness because the tax
Ing power 81 the national Government
extends throughout the Union, irrcspec-
tive OF state laws. However. the turls-
diction Of each state Is limited 10y its
boundaries and there is no way OF se-
curing the adoption 10y all the States OF
any uniform or consistent system OF
taxation. Each State can tax all IN
comes derived from sources within the
Stale by residents or non-residents. and
each state can tax residents OF the state
upon all Their income whether derived
from sources within the State or else
where II any State should adopt an
tfH.tN = 1aA
law and Ns fairness would depend upon
the tluctuatlre policy Of more than forty
other States.
To enforce State income tax would
be fully as difficult as to enforce a
direct tax upon intang BILE personal prop
erty, and II would result in the Same
measure OF fraud evasion. inequality
and unfairness. 1t would not be prac-
ticablc to enforce a state income tax
effectively except against those who are
engaged in some regular business and
keep accurate accounts which could he
examined by the officials OF the Govern
inent. To enforce sat" income tax
fairly against farmers would be espe-
ciaily difficult. as "A considerable portion
of their income consists of produce con-
sumcd by them and their families. ANY
reasonable state income tax law would
have to contain extremely complicated
IiToNlSlbHS anu Ut" administration OF me
law would he extremely difficult. The
law would prove veNatious to the peo-
pie and an army Of tax officials would
bc required 10 enforce II.
The political objections 20 a state
income tax are very serious. TO pro-
duce sufficient rc;urn and to make the
tax reasonably fair all incomes in excess
Of a very moderate exemption. say
1000. would have 10 be taxed unless
the rate Of the tax upon large incomes
should be made very high but any
honest effort to enforce "A law imposing
an income tax upon people OF small
incomes would be exceedingly unpopu-
lar and the law probably would not re-
main long on the statute books. IL the
Legislature should impose an income tax
1t probably would follow the example
Of Congress and would provide "A high
exemption from taxation so as to re-
licve most of the voters Of the state
from liability to pay any tax. while Il
would tax large incomes progressively
according to their size.
IL AT the outset law should he
enacted imposing an income tax at a
low and uniform rate and without
high exemption. political Influences prob
ably soon would resul: IN an amendment
Of the law to meet the supposed inter
ests Of the great majority OF the voters