Perth Amboy evening news., 1919-11-07
RECORD OFFERS
TAX SOLUTION
Gives Address Before InVeSti-
eating Commission
BIZ speetai notresponaent

BIZ SpeGfai correspondent
NEWARK, Nov. THE state
Chamber of Commerce yesterday ar
ternoon at its annual meeting in the
Board of Trade rooms in Newark
heard George l.. Record, recently APP
pointed by Governor Runyon as a
member of the special commission on
taxation, deliver an interesting adj
dress in which Mr.. Record set forth
the changes which he things ought to
be suggested and recommended to the
incoming Legislature by this special
Commission or Taxation.
Mr.. Record said:
The commission appointed to on
slider and recommend changes in u
system of taxation have held hearings
In the principal cities of the state, and
at those hearings and by letter have
received a large numbe of sugges-
lions. Some of these relate to i'm
proving the machinery of taxation and
others relate to changes in the system
of taxation. Perhaps the most i'm
portant of these suggestions are:
The assessment of all property in
the state. by a State Board, whose
employees shall be experts protected
by the civil service.
Various plans for exempting In
whole or in part property now sub
ject to taxation, such as the abolition
Of the personal property tax; the abol-
ition of the a upon machinery and
stocks in trade; the Pittsburgh plan of
a graded real estate tax whereby
buildings are gradually exempted from
taxation; the total exemption of build
ings and all labor products from tax
alton and the raising Of all revenue
by a tax upon the value of land.
A super or extra tax upon all lands
held idle.
A state income tax.
All of these suggestions and others
will be carefully considered by the
Commission and its recommendations
will be submitted to the incoming
Governor and Legislature.
! favor a comprehensive change in
our whole system of taxation. The
primary object of taxation is to raise
money. but any form Of taxation car
ries with it certain consequences be-
sides the raising of money, which may
be considered in the nature OF a by
product. 1t is known among econo-
mists as the Incidence" of taxation.
The most familiar example is the pro-
tectiVe tariff, whereby we levy a ma
tional tariff tax not only for revenue
but for the incidental purpose of fos-
tering industry. L believe in a sys-
tenn of taxation which shall have as
one of it's main purposes the idea of
making the state attractive to people
seeking to establish homes and bust
neSses.
Our present taxing system and every
suggested change in it should he sub
jected to this acid test, whether or
not the by-product effect of the sys
tenn operates to encourage people to
come to New Jersey, or to prevent
them from coming.
The direct effect of taxation as APP
piled to all products OF labor Is to
diminish the amount of such produc-
ton. If we tax dogs, there will be
less dogs; if we tax windows, as the
French do, there will be fewer win
dows. If we tax machinery and
stocks in rade of manufacturers.
there will be less of them. If we tax
buildings, there will be less buildings
smaller and cheaper buildings.
In addition to this effect there is
by-product effect, which Is
all taxes upon labor products are
passed on by the manufacturer to-
gether with a profit ~ the tax to the
in higher prices, and these
higher prices rttesHd further 70 I2n5{
rod the higher the
ess the people are able to
n.y.
There is a further by-product eff
feet OF cur present system in that 1t
encourages the holding of land out of