The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1916-01-12
Taxation.

The address delivered recently by
Governor Samuel W. Mccall to the
Massachusetts legislature contains a
passage of unusual interest concern
ing the respective fields of federal
and state taxation, says the New
York Sun. What Governor Mccall
says on this subject is applicable
wherever the legislators OF COM
monwealth are cropping about for new
sources Of revenue to meet the de-
mands of ever growing expenditure.
There is no statesman and philoso-
pher now in public life whose views
concerning taxation are entitled 10
more respectful consideration and
nobody capable Of explaining his
ideas more lucidly. There is no need
to apologize for the length Of the ex-
tract from q remarkable address:
II recommend that you impose 4
tax upon the income Of intanglbles
which shall be uniform through
out the commonwealth and
at rate which shall pro-
duce somewhat more than is
now derived from the tax upon
the capital value, so that the bur-
den upon real property shall not be
Increased. A law establishing such
tax should make compulsory re-
turn of incomes somewhat similar to
that enforced by the federal gov
eminent.
Taxation upon incomes will be
parallel to tax recently adopted by
the federal government and this sug-
gests some consideration Of the prop
er bounds ordinarily to be observed
between the state and national tax
alton.
Under the revenue system which
has usually been followed at Wash
ington, excepting in times during or
just following war, revenues have
been raised by duties upon imports,
which the national government has
monopoly of taxation and which are
prohibited by the constitution as
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 luxur-
les, but they are luXuries which we
should ordinarily be better off to
leave alone. We have the option OF
consulting our own advantage and
not using them, or of using them and
thus electing to pay the tax.
1.-THE policy recently entered up
on at Washington Is a departure
from the policy generally followed
In the past. 1t throws away revenue
at the customs houses and makes
good the deficiency by direct tax
upon property, and thus encroach-
es upon the sources Of revenue here
tofore usually reserved to the states.
"Taxes at the customs houses need
not be wholly or even In part what
are called protective. England,
which has what is called the free
trade system, raises great sums Of
money at her customs houses upon
articles which are not produced IN
kind in important quantities within
her own borders. The national In
come tax in effect falls below real and
personal property which is neces-
sary that the states themselves
should tax. The national govern
ment also imposes a tax upon trans
fers Of real estate which are a d.
rect tax upon real property in the
states, much of which Is already
overburdened.
"In addition to those and to other
direct taxes 1t is now proposed to put
a direct tax upon automobiles and
upon gasoline. Gasoline is nee
essary source Of power, not only In
our cities and upon our highways,
but upon our farms. 1t would econ
omically be no more vicious to tax
coal or wood. Automobiles are nu-
merous in those communities which
have made heroic sacrifices to OBJ
tain good roads. They are in turn
destructive of roads and entail high
expense in their maintenance and
repair. The work of building and
maintaining roads, so important to
the country has been done by the
states and the subordinate govern
ments. What justice is there, there
fore, in the national government
levying a tax which will fall with es-
peclal weight upon the states which
are vigorously carrying on the great
governmental work OF building good
roads?
"Our present state tax upon auto