New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-20
PRAISE STATE
TAX COMMITTEE
Council Says Joint Legis-
lative Body Fully Gov
cred Ground Assigned.
BY the Advisory Council OF Real
Estate interests.

Two reports of tho utmost import
ance 10 property owners have recently
been made public: one by the Mayors
committee on taxation. with regard 10
INC application ~ the half tax IN New
York CITY and new sources OF revenue
for the local government, and the other
by the Joint legislative committee OH
taxation. of which Senator Mills ~
chairman. Copies Of the report OF SEN
ator Mills committee are beng as
trlbuted and can be obtained from the
Advisory Council OF Real Estate IN
terests. The report OF the Mills com,
mittee ia most comprehensive anu
exhaustive report, covering 40 pages
II covers the revenue situation
throughout the state. particularly with
reference to cities and towns. IL ~
undivided into twelve parts. dealing
with the revenue situation IN general
the neculiar features of the New YORK
system Of taxation. the failure OF the
personal property tax outside as wei
as within New York State, and The m
effectiveness OF Section IL OF the tax
law. relating TO taxation OF corpora
lions. Considerable space is also gwen
to the taxation Of foreign corporations
and also TO the method adopted by New
York in taxing local manufacturers
who are amenablc 10 Section ~ OF the
tax law. A very able disauisiuon II
given TO the advantages and disadvah,
tapes Of a listing system for peraohal
property. MS well as miscellaneous bust
mass taxes and forms of corporation
tax outside Of New York. The report
concludes with certain recommends
tions, particularly one with reference
To an income taN.
The following proposed measures Gre
suggested by the Mills committee, with
n recommendation favorable TO the en-
actment Of AN income tax law, dfaI
Of which is included within the report.
The first plan provides FOR an income
tax upon every person residing "ithll
the state for his entire income from all
sources. except those located without
the state. The net income of corpors
tions is to be determined practically
as il is under the Federal income tax.
The only exemptions will be salaries OF
United States officials and interest upon
Federal. New York State and municipal
bonds. The exemption of an individual
is 81 500. 20 a husband and wife living
together 81, 700 and for each child 500,
hut with maximum exemption OF
$1,000.
The rate for corporations shall be
per cent or their net incomes. For in
djviduals the rate varies from u OF !
per cent TO . per cent, the latter APP
dying to all incomes Of more than 49,
600. The tax on salaries paid TO non
residents shall be withheld at the
source and every employer shall be
held for the tax.
For Classified Personal Tax.
The second suggested substitute is a
classified personal property tax, cover
ing all tangible and intangible items OF
personal property. with the exception
of certain tangible property 10 the
amount Of $4,000, the rate TO be ad-
iusted separately for each Class 70
10 mills on tangible property and 2
mills on the market value of stocks.
bonds. notes, debentures, etc. This
classified personal property tax is an
extension OF the system OF classified
property tax u Is now already ap-
piled to banks. trust companies and
mortgages. The next step is to extend
II to those intangibles comprised in
stocks, bonds and debentures, but not
TO moneys and credits. The present
plan contemplates the gradual extern
sion Of the classified property tax ut
some future date TO all other forms Of
personal property not included by this
act and not specifically exempted.
The third substitute for the personal
property tax Is the presumptive income
tax "A tax on the abilities Of those who
profit from the opportunities of New
York State. Such ability tax" would
be composed of three parts--a habita-
ton tax, an occupation tax and sal
aries tax. The habitation tax is TO be
levied on individuals occupying houses
or apartments for residential purposes.
Ii exempts ali rentals below $50 a
month, and above that liz sharply grad.
uated. The occupation tax is fiat tax
Of per cent OF the annual rental OF
premises occupied for business or for
securing a livelihood. The third part
OF the project Is the tax on salaries
paid or received in the state, except
salaries paid by the Federal govern
ment. The exemption in all cases 10
$4,000. and above that is graded from
to . per cent.
History of Income Tax.
With regard to the income tax, the
history of taxation would indicate that
there have been tendencies gradually
developed in this direction. Before the
nineteenth century the income tax prac-
tically had no vogue except in certain
parts Of Italy. In the closing years of
the fifteenth century the property tax
began 10 give place in Florence 10 an
income tax, and this tax was extended
somewhat 10 other independent cities
Of Italy. In France in the eighteenth
century considerable progress was made
toward an income tax, but II is really
to British policy that we owe the per.
manent establishment of this form Of
taxation. In the nineteenth century
Great Britain. through three Finance
Ministers of the highest rank, Pitt,
Peel and Gladstone, evolved this form
of financing the war against Napoleon
/ The first income tax was levied in 1893