The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-07
LAUDS INCOME TAX,
BUT WANTS CHANGE
Action on S%eligman's ResOlu-
ton Postponed by Cham
Der of Commerce.
FOR RUSSIAN TREATY

Tic chamber Of Commerce. holding
yesterday It's first monthly meeting OF
the year. postponed action on a resolu-
ton introduced by Isaac y. Seligman.
chairman OF the committee on state and
municipal taxation. favoring an amend
,nent TO the income tax section OF the
tariY act.
4 resolution proposed by Welding Ring.
chairman Of the committee on foreign
and the revenue rging
the Washington authorities to conclude
treaties ba sed on the most favored nation
clause with all nations with which the
t'nit.d States does not now enjoy treaty
citations. was adopted. \ section OF the
committee report presented with the
resolution read:
I'm view Of the expanding ial
and inancia Interests which citizens ~
the United States have In Russia the
committee Is unanimously of the opinion
that STEPS should be taken by our De-
pa Of State In cooperation with
the Department Of Commerce without
unnecessary delay to ncrotiate a treaty
Of commerce and amity between this
country and Puesia."
Nr. ScIignan's Resolution.
MT. SeIiglntil = resolution, aCtlOn OF
which is to he taken at "A special meet
Ing next Thursday was as follows
"Resoircd. That the Chamber Of Com
MERGE OF the state of New York favors
an amendment to the present Federal
income tax section OF the tariff act. pro-
yiding for the payment of the tax by the
taxable person and not at the source ~
income. and directs that copies OF these
preamhles and resolution he sent to the
proper authorities"
Mr.. Scligman's report was In part as
follows:
There is little doubt that despite all
possible shortcomings the income tax in
the struggle for social and fiscal Justice
IS considered by the verdict OF nearly all
civilized countries the most satisfactory
ricthod OF taxa,ion and is an u%ndoubted
advance over all other methods.
Real estate Will always bear Its share
Of burdens. and property has always
been accepted as "A valid basis OF taxa
ton. There IL. however, no doub that
real estate IL now bearing more than
Its share Of tax burdens.
Think. BETTER Basis.
We all have visible evidence Of con-
dit.ons in the real estate market which
are nearly unbearable. Moreover the in
'oHic liil'ipNt ~ Nohi4ie ~ Dt TttNk gllLeu
as an even better basis. Two pieces
OF property of the same assessed value
may enjoy al entirely different yield.
one may be occupied and yield a good
return. another may be unoccupied.
yielding no returns. and yet 9th must
be subject TO the same rate OF taxation.
In the case Of an ordinary business
a profits are. decidedly better index
of ability to pay than are he assets
or property Of the business.
Your committee has unanimously de-
cidcd that the next In order Of prefer
ence H. the form OF taxation marked
known as The Ability or Presump;ive
Income Tan composed Of a h~abitation
tax. an occupation tax m "A salaries
tan. This plan OF tax reform has much
TO commend II. The so-called ability
tax Is "A tax on the abilities OF those
who profit from the opportunities
afforded by the city OF New York. Con-
ccding that the fairest test Of ability
TO pay Is income. and assuming that
a direct 'ncom. tax H. unattainable. the
proposition is TO arrive at the Income In
directly and by outward signs. utilizing
certain definite facts Of expenditure as
yielding some Indication OF relative in
come. The ability tax as a ~presuinptive
income tax would, therefore. be COM
posed Of three parts. namely. a habita-
ton tax. an occupation tax n a sal
aries tax Your committee believes.
however. that there Is little likelihood Of
TINS proposal being enacted into law"