Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-02-10
FEBRUARY 10, 1919
MONDAY
4 BIG TAXPAYER ON TAXES.
litor Albuduerque Journal:

| have been very much Interested
in the Journals discussion of the tax
problem in New Mexico. Quite nat
urally am alarmed at the prospects
for the next few years. particularly
the city taxes. 1t is natural to expect
that, even with the most efficient ad-
minstration of city, state and national
governments, taxes for the next five
years will be higher than at anytime
in the past. But should there be m
efficient administrations the aspect is
somewhat appalling.
1t would seem to me that the prob
lem confronting New Mexico consists
Of several factors, the most important
of these being more efficient e&pcndi-
ture of public funds, more equitable
assessments as between real property
and personal property, and 100 per
cent collection of assessments.
In talking over the matter of taxes
with large taxpayers at various times,
mind They do not object to the
amount of taxes they pay, but they
do object to waste of the tax money
by whatever government they may
be paying taxes to. In other words,
the lack Of 100 per cent efficiency in
the expenditure of public money may
be said to be the chief cause for tax
lodging on the part of large property
nv ie r1 n
not be remedied all at once, and it
requires constant hammering on the
part of the public to maintain what
ever progress toward perfection as
may have been accomplished in any
given period. But there IS room for
improvement in that regard in New
Mexico, just as there is in every state
to u greater or lesser degree.
The matter of more equitable as
scssments as regards real and person.
al property is naturally subject to va
rious solutions. After five years Of
operation under the various income
tax laws of the federal government,
am more than ever inclined to think
that an income tax is the most eQuita-
Bile form of taxation, if properly adj
ministered. I am willing to admit
that there are many phases of it that
have not been perfected by the federal
government, but progress is being
made in each attempt. and we may
hope to have a well-nigh perfect in
come tax law before many more con-
crosses have passed into history. With
the experience of the federal govern
ment to work with there is no good
reason why states, cities and counties
should not attack the tax problem
along this line.
! note the suggestion of the Journal
that New Mexico, in addition to its
present methods of assessing and col
lecting taxes, add an income tax and
an inheritance tax to the burden its
citizens now carry. With the inherit
ance tax suggestion I agree without
question, but would suggest that it
should not be higher than the lowest
inheritance tax schedule of any state
in the union. l am led to make that
suggestion by the condition existing
in California. This state made its in
heritance tax schedule so high that
many of the most wealthy people of
the state gave up their legal residence
in California in favor of eastern states
more generous than California, with
resulting injury to this state. New
Mexico needs more men of capital and
cannot afford to do anything that will
keep them out.
Now. in regard to an income tax
for New Mexico. without change in
tho present taxes, ! am not in accord
with your idea at all, and for the fol-
lowing reasons: Your motive in es-
tablishing such d tax is to reach the
citizen who holds very little real prop
erty and more or less personal prop
4. Just burden. The motive is perfect,
but the method of remedying the
wrong condition is not equitable to
the citizen whose property is all. or
nearly all. real property. The latter,
under your suggestion, would not only
pay the same amount of tax under the
present law. but would also pay an
income tax as well, while the owner
of personal property would be merely
an income tax payer, 1t may be
argued that the income tax law would
provide for deductions allowable to
the taxpayer owning real property,
but no system of deductions would
equalize this condition. Let us have
either straight income tax system or