The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-01-25
AN ANALYSIS OF PRESENT TAXATION
SYSTEM IN VIRGINIA SHOWS DEFECTS
Should Be the Foundation of System of Taxation


'T.se .G,.,,-t..sUtal principle of our
American civilization 10 that all men
are born free and eQual--not free TO
40 as one pleases. but free In the sense
that the law imposes no restraint upon
one person that 1t does not impose
upon another In the same circum :
stances: not equal In Inheritance. In
intellectual power. or even in social
poeition. but equal In the sense that
the law knows no favorites; that
there are no privileged classes: that
no one. either by reason OF his birth.
wealth. Inheritance or position, IN en-
titled to demand favors from the gov
eminent. either in the way of direct
BENEFITS conferred or burdens exon
Grated.
This principle Of equality Is. or
should be, fundamental to every sys-
tenn of taxation and should permeate
such 4 system to Its uttermost details.
This principle of equality 10 at the
basis Of all the constitutional limita-
tions which bind the Legislature in
the exercise OF It's taxing power.
The maxim that taxes can only be
levied for public purposes In imbedded
In the Idea OF equality 30 far as ex-
psnditure Of the public money 10 con-
termed.
When We come to consider tho duty
and obligation OF the individual citizen
In the matter OF taxation and the re-
iation which he should bear to tho COM
nrunity ~ whole. We find two theories.
The older one. hold by the political
economists OF the eighteenth and early
part Of the nineteenth century. 10
known - the 'bsnefit" theory, to-wit.
that the citizen should pay taxes In
consideration of, and according to. the
benefits rendered to him by the state
This theory regards the State in tho
light of an insurance company to which
the oitissn pays his tax and from which
he receives In return \ quid pro quo
certain amount Of law. order. justice
and protection TO person and prop
srty.
The latter and better theory In that
equality In taxation consists In equality
Of sacri6ce. that 10 to say. apporticn-
ing the contribution OF each person
towards the expenses Of the govern
mont 20 that he shall neither feel
more nor loss Inconvenience from his
share OF the payment than every other
person experiences from his. Or.
stated In another way. the citizens
ought to contribute to the support
Of the government in proportion to
their respective abilities, that 10, In
proportion to the revenue which they
respectively enjoy under the protec-
tion Of the State. This theory OF tax
alton 10 known az the faculty"
theory. each person paying In Accor-
dance with his ability to pay. or ia
Guilty, and not in proportion to the
osnsdts received: and has received the
sanction OF political economists like
Mil and Smith.
In considering any new scheme of
taxation. II IL essential that we bear
In mind. frst, the constitutional iimi-
tations on the Legislature in enactinE
laws: and In this connection. we should
consider both the provisions of the
constitution Of Virginia and Of the
constitution OF the United States: and.
second. the present scheme of taxation
~ enacted by the Legislature within
such limitations
CSnsfiewtssnal PrsvAsssns witch May
Have . Bearing % she Proposed
F1aas ~ TIE Refsrn.
Section s-tBtn OF Rights)--The peo-
plss Cannot be taxed without
their own consent or that OF their
representative duly elected"
Section s-tBili Of Rishts)-'.No
person shall BE- deprived Of HIS prop.
srty without due process OF law
that in the valuation Of property for
taxation. some tribunal must be given
ths power to correct erroneous assess
msnf upon application Of aggrleved
taxpaysrI.
Section so-"EvAry law imposing.
continuing or reyivtnx q tax shall
specifically state such tax. ana no law
shall be construed n so stating such
tai. which requires a reference to any
other law or any other tax"
Section e3-"Ths General Assembly
aAsil not enact any local. special or
D1fvate law In the following cases:
5. For the assessment ard collection
Of taxes. except a. to animals >
dangerous to the farming interests
Z. Extending the time for the as
easement or collection OF taxes.
Z. Exemptfng property from taxa
ton.
g. Renting. releasing, uostponing
or diminishing any obligation or lia-
htlfty OF any person. corporation or
association. TO the state or to any
political subdivision thereof"
Section 6<-"No general or special
law shall surrender or suspend the
right and power Of the state, or any
political subdivision thereof. to tax cor
porations and corporate property. OK
capt ~ authorised by Article ls."
(which deals with taxasion).
Section l1l-The board of super
visoSs shalt lay the county and dis
trict lAYiea.
Section l1S-.In cities and towns the
assessment Of real estate and personal
property for the purpose OF munich
pal taxation, shall be the same A. the
assessment thereof for the purpose
Of State taxation, whenever there shall
be . State assessment OF such prop
erty."
Section lss-rhe General Assembly
shall apply 'an annual tax on prop
srty OF not less than one nor more
Than AVA unifln IN ha