Evening star., 1917-01-15

The only successful state administra-
zion OF an income tax is in Wisconsin.
Its greatest claim to fame. which is
not slight by any means. is due to the
zeal. ability and energy OF it's admin
istrators and the complete administra-
two features. The law is excellently
drawn and better administered. The
Wisconsin law Is not a general income
measure: 1t Is substitute for the gen
eral property tax on certain classes OF
personal property, including money and
the property from direct etssa. taxes. r- The re-
suit is quite different from that in
South Carolina. Virginia, Massachu-
setts and Oklahoma. which imposes
The second method of taxing this
kind Of property. as stated, is by means
Of a low rate on all the property IN the
class. at rate much lower than the
rate or tax imposed on real property.
and is the method adopted in Pennsyl-
vania. Minnesota, Iowa. Rhode Island,
Connecticut and Maryland. The people
OF Utah, within recent years. approved
a constitutional amendment providing
for classification of property for pur-
poses of taxation. but I have no in
formation of the change. IL any, made
in pursuance of the power. Further ex-
tension of the method was approved by
the voters of Kentucky in the year
1913 by 10000 majority. but the amend
ment was declared null and void. ow-
ing to the notice Of vote on consti-
given by advertisement prior to the
vote being declared defective.
The rate on property within this class
in Pennsylvania is 40 cents on a hundred
dollars Of valuation, except against the
bonds Of domestic corporations. on which
the tax is collected at the source at the
rate of SO cents. In Minnesota the rate
is 80 cents and in Iowa so cents. The
Rhode Island rate is 40 cents; this Is
the rate also levied on the corporate
excess" Of domestic corporations. or, In
other words, the excess in the market
value of shares over the real and tan.
gible personal property. In Maryland
the rate is now As cents.
Connecticut, which also has rate OF
40 cents. has a plan of discount for
voluntary return. with what success in
administration l have no information.
| Idaho. Washington, Delaware and. the
| District of Columbia exempt securities
| from all taxation
In contrast with the two methods in
these states stands the methods now In
force in the state of New York. Irefer
to your so-called secured debts law"
| the provisions of which are under
stood, know, fully by all Of you. 1t is
not my purpose or desire to discuss
this law. either from a revenue stand
point or as proper method vel non
\ Of taxing this kind of wealth, because
people who are interested may find
all the literature on the subject that is
| desired from eminent authorities
|
adopted similar measure in the year
| 1913.
| Until recently have had nothing
Whatever to do with the administration
of the tax laws of Maryland, at which
time the efficiency of the law had been
proved. although for, some time have
| been investigating the laws and meth
DDS in force there and in other states.
| 1t is high praise given by Prof. Bull
lock Of Harvard when he says: The
fexperience of Pennsylvania and Mary
land under imperfect laws and with i'm
perfect methods of administration
should lead to a revision of the opinion
that It is impossible to collect any
sort of a tax on intangible wealth. Is
it not possible that these common
wealths have found practical. II not
an ideal, method Of removing the worst
evils in American state and local taxa
| tion?'
leighteen years ago. at the January ses-
| sion of 1898, and went into effect the
| following year; 1t provided for uni
form rate of 80 cents for local purposes
plus the direct state general property
rate. which as that time was 17A
what is effected by its terms. The law
provided that "all bonds and certifi-
| Gates of Indebtedness issued by cor
porations and stocks of foreign cor
porations" are within the purview OF
| the law. but only on condition that in
lterest is paid within the year. Shares
iof Maryland corporations. ordinary
mortgages. book accounts OF merchants.
savings accounts are not included
within the classification in Maryland.
| but are included in other states. State,
county and municipal stocks are not
now included. This tax is not imposed
upon the holdings of this classified
property held by savings banks. be-