The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-01-14
Legislature Here in Final Grapple With Tax Problem

Knows of the existence OF State. county
AMI city prisons, OF great frstitutions
for the care of those unfortunate
wards of the Commonwealth with
minds diseased. and of COLLEGES anu
universities Ior the higher education
OF the young. but takes these THINGS
as II matter of course, not realizing
trat for the support af these neces-
nv institutions in .igiiizo1 communi-
ties all the people must pay in proper
ton to their ability and their accumu-
| lation.
In view. therefore, of this aspect
of human nature, and of the immense
| variation in values as determined by
countless conditions ii would seem to
| be the ideal tax reform to 80 adjust
taxation that the citizen may the more
nearly see the operation Of the sys-
| tenn and have full knowledge of its
workings and be made to realize
full partnership in its results.
| With these primary facts in mind
| the Special Joint Committee on Taxa
/ ton prosecuted it's Investigations with
infinite patience and exceptional abii-
lily. II speedy located and agreed on
the causes Of public dissatisfaction
t IN ne present tax syst+aIa,- bt4f-beennse
/ divided into two different schools OF
thought as To the remedies to he ap-
piled. and submitted to the Governor
as the result OF It's labors. majority
and minority report on November J.,
/ 1919.
His Views Change,
In this connection | feel that l
should say that my own views have
undergone n change as result OF
one years lrcumbency of the execu-
/ tive office and of the close study
( have given the subject. in which l.
have been greatly aided by the re-
ports of the committee.
The committee was t~C"tred oN 80
/ provisions of the act which brought
it Into existence to report two plans
of tax revision. one Ia n system IN
3. yolvinS the establishment of State
! Tax Commission. charged with the
power and duty of equalizing the bur-
dens of taxation as between all tax
payers and all classes OF property in
the State. The other is a tax system
involving segre gation OF certain classes
I OF property to be taxed exclusively
: for state purposes, and from which
! the state is to derive approximately
the revenue necessary for its support,
/ ANY discussion of the relative merits
/ Of the two systems must, of course,
be general in its nature for the pur-
poses of this paper
| Taking up briefly the frst plan sug-
gested it must be remembered that
our difficulties grow not out of me
/ quality Of State rates, but out of in
equality Of the assessments TO which
IA common and uniform state rate is
applied. The task of a State Tax COM
mission. as proposed by the majority
report, would be the equalization of as
sessments of all classes of property
I throughout the State, and the useful
ness of such commission would be
measured by it's success In accomplish
ing this task. If the difficulties of
such task were not manifest, the
experience OF number of states would
give incontestable proof on this point.
1t has been frequently said of Viz
ginia that in no state of the Union
can be found a greater diversity Of
products. This Is another way OF say
. Ing that there is no State in the Union
with greater adaptability of soil. and,
therefore, a greater variety of soil.
with consequent variations of value.
The difficulties of equaiizing at long
range the assessments of thousands OF
tracts of land varying greatly in ac-
tual value In the same community. and
varying vet more in communities in
the same county, and still more as
between the one hundred counties and
twenty cities of such State as viz
ginia, would seem ell-night insur-
mountable. Does IL not seem that the
unit is too large for self euuaiixa-
ton?
Commission Ineffective.
If, however, we admit for the mo-
ment thar an approach toward State
equalization of assessments Is possible
by providing a State Tax Commission.
would it be the part OF wisdom to
embark in q cumbrous, expensive and
uncertain nndart n liking xrhan a
onably certain. economical and self
executing system of equalization In
vites our attention.
1t Is not the name equality, but the
thing equality that we seek why
then. at the cost OF treasure and con-
tentlons and chickering's and possible
public dissatisfaction, pursue the
shadow of uniform valuations, when
the substance of natural equalization
Is within our grasp?
1t is not enough that a method of
assessing taxes be fair and Just. In a
government by the people 1t is es-
sential that the public be convinced
that 1t is fair and Just
Segregation, unlike equalization Of
assessments is not to us an expert
ment. 1t has been in force In vir-
ginia for many years. The State now
derives $450o.000 90 of her revenue
from subjects already segregated Why
not extend segregation at least far
enough to absorb for State purposes
all taxable subjects which are OF q
class easy of assessment. such as in
tangible property which, as rule. as
sesses itself on Its face, and rolling
stock of steam railroads. easily assessed
by already ascertained standards of
value. and which. by Its very transit
tory nature presents, and may con-
tinue to present, difficulties In distri-
button az between counties and cities.
and is therefore preeminently a subject
for segregation to the State? Taxes
on insurance companies might also be
segregated to the State for reasons
kindred to those already given.
Provision For Dencft.
| 1t is the opinion OF some members
Of the special Joint committee on tax
alton, AS 1t Is also the opinion of
some of the State officers familiar with
this question. that the State can de-
rive from the subjects already segre-
gated. and to be segregated under this
plan, annual revenue which will reach
within $500, 900. or possibly $55o,0e0, of
the amount of the actual annual ex-
penditures of the Commonwealth. I