The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-07
Taxation 1t Warrington and Tara.
ton 1t the state Capitals.

ton 1t the state Capitals.
The address delivered yesterday by
Governor SAMUEL W. MCCALL to the
Massachusetts Legislature contains
a passage of unusual interest on
corning the respective fields of Fed.
eral and State taxation. What Gov
ernor MCCALL says on this subject is
applicable wherever the legislators of
a Commonwealth are CROPPING about
for new sources Of revenue to the
demands Of ever growing expenditure.
There Is no statesman and philoso.
pher 10Y In public life whose views
concerning taxation are entitled to
more respectful consideration. and
nobody capable of explaining his ideas
more lucidly. There Is no need to
apologize for the length of the OK
tract from a remarkable address:
Il recommend that you impose a tax
upon the income OF ~intangibles which
shall be uniform throughout the Com
HlOIN edltH, anu AT y rate WHICH s1dlI
produce somer-hst more thai is now
derived from the tax upon the capital
value. so that the burden upon real prop
erty h not be increased. A law es.
tablisling such a tax should make COM
Dulsory a return of Incomes somewhat
similar to that enforced by the Federal
Government.
Taxation upon incomes will he parsl-
ed to a tax recently adopted by the
Federal Government. and this suggests
lone consideration Of the proper bounds
ordinarily to be observed between State
and national taxation.
"Under the revenue ystem which has
usually been followed at Washington. ex-
cepting In times during or just following
war. revenues have been raised by du-
tional Government has a monopoly Of
taxation. and which are prohibited by
the Constitution as a source of revenue
to the States: and the income from this
source has been supplemented by taxes
upon articles OF voluntary consumption.
These articles are sometimes called lux
uries, but they are !uxuries which we
should ordinarily be better off to leave
alone. We nave the option Of consult
ing our own advantage and not using
thsm. or o: using them and thus elect
ing to pay the AK
The policy recently entered upon at
Washington Is 4 departure from the
policy generally followed in the past.
II throws away revenue at the customs
houses aud makes good the deficiency
by a direct tax upon property. and thus
enoroaches upon the sources Of revenue
heretofore usually reserved to the States.
"raxes at the customs houses need
not b wholly OF even in part what are
.aled protective. England. which has
what 10 called the free trade System.
raises great SUMS OF money at her GUS
toms ouses upon articles which are not
produced in kind in important quantities
within her own borders. The national
income tax in effect falls upon real and
personal property which II Is necessary
that the states themselves should tax.
The national Government also imposes
a tax upon transfers OF real estate,
which are a direct tax upon real prop
erty In the States. much Of which Is al
ready overburdened.
I'm addition to those and to other d.
rect taxes 1t is now proposed to put a
direct tax pom automobiles and upon
GAsOlene. Gasolene 10 a necessary source
Of power. not only in our cities and
upon our highways. hut upon our farms.
1t wouid economically he no more vicious
to tax coal or wood. Automobiles are
numerous in those communities which
have made heroic sacrifices to obtain
good roads. They are in turn destruc-
tive of roads and entail a high expense
in their maintenance and repair. The
work Of building and maintaining roads.
20 important to the country. has been
done by the States Il the subordinate
governments. What justice Is there.
therefore. In the national Government
levydng a tax which will fall with espe-
Cal weight pon the States which are
vigorously carrying on the great govern
mental work Of building good roads
"Our present State tax upon automo.
biles 10 not sufricient TO pay for the
special damage inflicted by them, upon
our roads. and II there Is room for an
increased tax upon them that tax should
30 to the local governments, whion must
provide the money to repair the damage
they innict, Furthermore. the tax upon
automs0flss has a sectional application.
and Just a. the income tax Is one from
which q section Of the Union is almos,
wholly exempt, so the automobile tax
will rsst very lightly upon the same
group q States,
The original Constitution gives the
national Government the power TO Al.
portion direct taxes upon he states In