New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-23

Sir: The pressing need of some solution
of the questions of taxation is again brought
to mind by the public hearings of the Mayors
Committee on Taxation. 1t seems untort-
innate that this committee has deemed II
worth while to give its attention and to d.
rect the attention of the public to question
which its own expert. Robert Murray Haig
PHI D., has reported upon adversely. Such
may be considered TO be his conclusion, as ne
states that the proposition 20 relieve improve
ments from taxation is, to use his own words
mot a safe craft in all weathers,' and that
while in certain Canadian cities conditions
made it possible to make the experiment
without appreciate burdens being put upon
the property owners, these do not obtain
to day in New York City"
He also admits that there are various ele-
ments Of the problem which can only be de-
termined, under the conditions existing IN
| our city, by actual experiment And, speak
ing of the security OF real estate mortgages
he says that the holders would have little TO
fear unless the adoption of the plan would
so shock the faith Of the community in the
desirabilty OF real estate investments as TO
cause a real estate panic"
Real estate is already so heavily burdened
that the city receives in many cases two
thirds and more of the income of the prop
crty and in most instances more than one
| fifth of the net income. As to unimprcved
land the burden OF taxation has become so
great as to seriously affect its value. 1t
would seem to be peculiarly unfortunate
time to urge an experiment. In view OF the
! fact that the city collects in taxes approx
mately $3.50, 10000, of which all but about
IS 500 900 is collected from real estate, it
would seem to be bad proposition to strike
blow endangering the stability of that
| from which SO per cent of the money is de-
rived
Az applied TO New York City, the scheme,
according to the experts figures, would de-
stroy some sos 100000 of value in vacant
land from which. of course, no more taxes
could be received in future years, and would
transfer an amount approximating s52,O0O,0OO
Of taxes annually from improvements to land
alone. This is to be understood literally as
expressed. The $4,000 900 would be de-
stroyed. 1t would simply cease to exist.
As TO the $50, 100000, assuming that the
theory of the expert is correct that it would
be transferred to the tenant in diminished
rental, it is still not clear why the city should
risk 4 financial catacly3m for the sake OF
taking money out of the pockets OF some o.
it's citizens to put it into the pockets OF
others.
Dr. Haig's argument is that the tax upon
land cannot be shifted from the owner to
the tenant. but that the tax upon buildings
can be so shifted.
Il would be interesting to know just where
he would put improvements such as street
openings. sewer water. etc, which in a sense
are neither a part of the building nor rart
of the original land.
As matter OF fact rents are not governed
BY the rates of taxation. except indirectly
and over a series Of years. They depend on
the law of supply and demand. as illustrated
in his Canadian report respecting the city Of
Vancouver where he says that until recently
the returns received were abnormally large
and now they are abnormally small" They
unaue stionably followed the NATURAL law. and
their abnormal appearance is due only TO an
erroneous theory OF what caused :hc varia-
ton. The mere cessation OF building brought
about by such a proposed change in the tax
laws would be sufficient TO raise rents shortly
in all directions. Ii is true that an unhealthy
stimulation OF building might be the most
immediate effect of the passage of such a law.
but this would only accentuate the contrary
condition which would follow later.
New York builders have never needed any
stimulation. The city grows rapidly, but
the enterprise of our builders keeps little
ahead Of the requirements of the community.
The ultimate effect OF the law unquestlon-
ably would he TO increase rents rather than
diminish them
Anything which tends to diminish the value