The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-23

city and State government and general
subjects of taxation will be discussed.
Tho Mayors and city tax officials
from practically every municipality in
the State are attending the conference.
Mayor James r. Watt OF Albany well
coined the tax officials.
Edwin ". a. Selgman. vice president
Of the State Tax Association, opened the
conference tonight with an address. He
was the only speaker.
Plan for Combined Tax.
Prof. Seligman, who is OF the de-
partment of economics of Columbia
University told the conference that the
solution of the city and States fiscal
problems lay in the application OF a sort
OF combined State income and business
tax He admitted a crisis confronts the
taxpayers in State and municipal
finance which will require the immediate
broadening of the base of revenues. The
probable assumption by the Federal
Government of the telegraph. telephones
and probably of the railways as well
rrof Seligman said. will tend to destroy
another important category of revenue
I'm New York city" he continued
"the base OF taxation is being narrowed
every year until real estate has come
to bear the overwhelming burden of local
taxation
Prof. Selignian declared experience
had proved the inrpossibility of collect
ing a personal tax and said that he
gareed with the principle of fixed real
estate tax so that there would be some
reasonable prospect of permanence for
intending investors.
1T is clear, therefore" he concluded.
l,at
adequacy, efficiency and equity. all in
dications point unerringly to the desir-
ability OF the combination Of an income
and business tax as a way out Of our
fiscal difficulties. both State and local.
We have only ourselves to blame IL we
do not seize this opportunity and pluck
the ripe fruits Of both reflection and eX-
perienCe. BY utilizing the example OF
tile Federal Government and its decisions
a state income tax will be compare
lively simple to administer and entirely
adequate to our needs"
Unjust Levies Fail.
The principle OF the general property
tax. Prof. Seligman said. was no longer
in harmony with modern economic con-
ditions and no longer responds to the
average sense of fiscal justice. A tax
that is felt 10 be unjust, he said can
never be successfully enforced. however
drastic or rigid the law might be. Point
ing out that wealth might he considered
either as an accumulated fund or a
steady flow OF income Prof Seligman
said
'"rhcre are a great many earnings that
are not derived from capital AT all and
this has become Of tho greatest impor-
lance in modern times. The Carusos. the
railway presidents. the prosperous physi-
clans. lawyers. engineers, architects: m
| fact. a great part OF all modern occupa-
| tons and professions would go scot
free under a property tax whether OF a
| nigh or low rate
1.-THE cumulative effect OF all these
| cor sideratons is that people no longer
look upon property. or at all events not
upon personal property, as an equitable
measure Of wealth. Real estate indeed
| 10 somewhat different. because in real
estate In thu long run the value OF the
/ property is simply a capitalization OF its
| present aud prospective income. But
| property IN general has been repldC ed by
| earnings or Profits or income as the
better measure OF wealth. That is the
| fundamental reason why the general
property tax has disappeared virtually
| everywhere else in the civilized world
and why it is fast disappearing in this
| country
Equitable Adjustment Urse6.
Discussing the equity OF State In
come tax Prof Seligman declared 1t
| was in conformity with modern eco
nomic ideas and as such was preferable
to a general property tax. Besides that.
he said. the income tax reached wealth
| that II would be impossible to reach
through a property tax and its appiica-
ton would result in more equitable ad-
justment between classes and sections
of the State
"It is safe to say" he predicted. that
| IL the range of incomes for the current
year is anywhere near that for the year
| Just passed we may expect from ! per
| cent. tax on personal incomes in the city