The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-17
MODIFIED SINGLE
TAX PLAN ON TRIAL
Mayors Committee Consider
ing Increasing Land Tax
Expert Against 1t.

whether the tax rate on buildings shall
he halved. with a commensurate Increase
of the tau rate or land. will shortly Ire
forthcoming. The Mayors comm. ttee on
taxation will hold hearings on this pro-
pUsal next month. Real estate interests
Will he represented at these hearings
by practically the same men who have
appeared before Senator Mills's commit
tee on taxation. Questions are now be-
ing framed by the Mayors committee.
Of Who'll Alfred f. Marling Is chairman.
The basis of the hearings will be two
reports prepared by Prof. Robert MUIR
ray Haig instructor Of economics In
Columbia University. These reports
deal. first. with the exemption ~ i'm
provements from taxation In ANA
and IN the United States. and second,
with some of the probable effects Of
the exemptions Of improvements from
taxation In New York city.
DIR. Haig has acted as special inves-
tigator for the Mayors committee, and
his reports are exhaustive and compre-
hensive. He treats of the effect of the
exemption Of improvements In Nova
Scotia, New brunswick, Ontario. Mani
toba. Saskatchewan. Alberta and British
Columbia. In the United States he
treats OF the effect In Houston, Texas ;
Pueblo. Cal: Pittsburg and Scranton.
Pa, n Everett, Wash. In none OF
these provinces or cities has the abso-
lutte single tax been put into operation.
the closest approach to It being made
In Edmonton. Canada
The general tenor Of DR.. Haig's report
upon the operation OF the single tax
in Canada Is to the effect that II can
only be regarded az satisfactory In those
localities where the increased tax ON
land Will not be onerous because OF
the exceedingly rapid Increase of the
increment value VI the land thus af-
fected. IL is significant that practically
every one In western Canada agrees
that the exemption of improvements
stimulates building. but DR.. Haig states
h the fact that 1t has stimulated
building Is not certain evidence that 1t
will have that effect In New York city.
With regard to "A decrease in rents,
there was little experience of value TO
oner in western Canada AS TO the effect
OF this policy. although rents are some
what over now than they have been
IN previous years, owing to the fact that
they had been rather exorbitant. Since
such "A tax system tends to
economy in land, the movement toward
apartment building has been quite pro-
nounced. with "A possible congestion OF
population in the larser cities.
II would seem that single tax principles
throughout western Canada have been
encouraged for the most part by specu-
lators In land who endeavor to maintain
a small tax rate and encourage abb
normal building. But this is true only
during a period OF real estate activity.
During periods OF s~tagnation, when
property is stationary. or declining in
value. there has been no action taken to-
ward a further reduction Of the tax on
buildings. Wherever its Introduction
has involved IA material increase In the
tax rate. AS It would here in this city,
the plan has had undesirable effects. As
a matter of fact. Canadian experience
offers no evidence AS TO what effects may
be where land values are increasing UNI
eN emily. as in the several boroughs of
this city.
Dr.. Haig, in conclusion. states that
the conditions which have been favor
able TO the single tax in western Canada
do not obtain in New York city to-day.
slthough they may appea again here.
To make the application successful.
values must be increasing evenly
~throughly the city, which is not tho
case at the present time.
Ar exhaustive analysis has been pre-
pared b. DIR. Haig with regard to the
probable effect OF the half tax on
building in tine various boruughs of this
city. He maintains that the tax burden
In Manhattan would be increased 10y the
adoption of the proposed plan to untaX
buildings.
Under the partial reduction plan the
tax rate on land woul increase To zee
and under the full plan to ESQ. There
would be a decrease in taxes in the sky
sorapers below Chambers street and up
town Downtown tenement
would pay higher taxes, while single
family houses would probably be re-
quired to bear "A heavy Increase, The
presence OF a large quantity Of vacant
land in T e Bronx would prevent a very
large decrease of taxes In this borough
under the proposed plan. II this vacant
land were to he disregarded, DR.. Haig
states that there would he a considerable
decrease In the taxes on the remaining
real estate. The tendency would he Il
force much OF this vacant land in The
Bronx to immediate use.
Vacant land In Brooklyn is not a fac.
tor of sufficient Importance To anect the
situation to the degree that IL would be
affected In The Bronx. In seven sections
Of Brooklyn DR.. Haig believes there
would be actual increase in the total tan
81, real estate. In Queens taere would
be- a slight increase in the total taxes
under the proposed plan, while in spit
o. the presence OF IA large quantity OF
vacant land in Richmond the report
states that there would probably be a
reduction in the taxes there.
1t IL not evident that tenants will re-
ccive any considerable benefit from re-
duction of taxes on buildings because OF
several factors which might interfere
while II any benefit whatsoever should
result the cost would be caarged to tn,
owner OF the land.