New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-08
WHO SHALL PAY TAXES?
Land Owners or Workers and In
dustry Now Heavily Burdened?

To the Editor of The Tribune
Sir: Mr. Manierre, unwittingly ! am sure,
conveys the impression that Dr. Haig, expert
Of the Mayors Committee on Taxation, is
opposed to transferring taxes now levied on
buildings here 20 land values. Before the
Mayors Committee on Taxation Dr.. Haig
stated that he favored this principle
Mr. Manierre, in his letter. quotes DR..
Haig TO the effect that the untaxing of build
ings is mot a safe craft in all weathers.'
This is, of course, true Of most other things;
but DR.. Haig also states, on the same page
Of his report on Canadian cities 20 which Mr..
Manerre refers: "The time TO make the trans
fer is when land values are increasing. 1t
may be desirable TO adopt the policy, but
it is well to recognize the cost involved.
Whether it is desirable to adopt the policy
is question OF weighing the gains 70 be
realized against the risks and losses to be
suffered
In his report on probable Effects" Of UNI
taxing buildings in New York City Dr. Haig
states. "the change promises ultimate bene-
fits Of considerable importance to all ten
ants and to many Of the small home own
ors in the outlying boroughs," and also "the
owners Of land would be charged with the
cost Of these Improvements"
In view Of the self-evident fact that own
ers of land are the financial beneiciaries of
all wise municipal expenditures, the ques-
ton is one Of justice between land own
ers-less than per cent of the city's popu-
lation-and tenants and small home owners,
because small v;I,
owners of homes and only secondarily owners
Of very small values of land
Mr. Manierre has not correctly reported
Dr. Haig as to the effect of the proposed
change upon the selling price of land. II is
a truism that the value of land for use will
remain the same whether government gets
the ground rent or private interests do The
difference is that to the extent that govern
ment permits land owners TO secure the
ground rent of land, community product
government must take the wages or earning
OF workers of all sorts for the cost of govern
ment. The selling price of land in New
York. as has been brought out clearly before
the Mayors Committee on Taxation, would
not be reduced at all by the transfer of taxes
now levied on buildings TO land values during
a period of ten years.
Mr.. Manierre should not be ignorant-is
he?-of the fact that Pittsburgh and Scran-
ton have started to reduce the tax rate on
buildings to one-half of that on land values
with no evil results. Is Mr.. Manierre igno-
rant of the fact that land spectators of Pitts
burgh tried to get the law repealed, and that
Governor Brumbsugh vetoed the repeater last
spring because the change was so popular
in Pittsburgh?
Right here in New York City, a few years
ago, we adopted much more drastic change,
when unimproved land, which had been as
sessed at one-third of its true value, was as
sessed at full value, as was all other land,
approximately.
The citizens of New York should face the
fact that we shall have to raise a budget for
local and state purposes of s25O,OOO.O 900 by
1919 or 1920, and the further fact that the
Federal government must raise several hun.
dred million dollars a year additional. New
York City can raise the increased revenue
by taking more of the ground rent or by
taxing workers and industry to the welcom-
ing shores of New JERSEY and nearby coun-
ties of New York and Connecticut.
The selling prices of land of New
York City have probably reached rock
bottom, and the water has been large
ly squeezed out They are bound to an
crease and now is the time to make the
New York City The added population and
industry, as we'll as the better health and
financial status of the existing population,
will accelerate increases not only Of the as
sesscd value but as well Of the selling price
of land. BENJAMIN c. MARSH
New York. Nov. %, 1915.