New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-23

city which go into a general fund. the
balance is levied against property
lmostly realty) and Of the total levy
1t appears that the above mentioned
allowance from realty incomes should
cover about so per cent and leave the
balance to be derived from other taxa
bic incomes in the community
Recalling that in any system of
finance taxes will be derivd only from
incomes, what faircr means for distrib-
utlng the cost of government can be
deVlsed? nat more certain method can
be found for maintaining healthy
(Which usually means low renN condi-
lions IN the real estate market?
This system of proportionate bur
dens seems to avoid the uneconomic
and therefore unsound effects of a fixed
rate, Tor 1t provides for all the neces
sary lasticlty IN the tax base ard also
creates community interest in
every nrocct for increasing the size OF
the budget-the only chick upon the tax
spenders which will operate EFFECTIVELY.
Lo" Rate On Personally
Persons Looking for a new source of
revenue naturally look into the pos
slbilty of a larger revenue from the
assessment of personal property, which
now largely escapes the assessor.
tangible personal property most Ger
talnly should pay a substantial tax and
IL presents fewer difficulties than does
the taxation of intangiblcs.
AS revenue producer, this plan has
never attained prominence. Several
states have such taxes in operation and
although they succeed tosthc extent
that they place larger amounts of prop
erty on the assessment rolls, the Weld
at one-fourth per cent of other low
rate does not materially exceed the
receipts from personally previously OBJ
tanned at the general rate. Also. it is
necessary to regard the amount of this
property now exempted by law-and
the feasibility of repeating those ex-
emptions
Statements have appeared in the
PRESS as TO what such a tax would
yieid IN New York, with it's enormous
wealth OF personal property. But
mere is no known basis for such
hgures and they cannot be Identified
with the title Of cstimates-thev are
the widest kind OF guesscs. Income
returns do not afford a basis because Of
the large proportion of all income,
"hich is from services rather than
from property.
The Income Tax
NO fairer principle of taxation can
De adopted, says Professor Fl. A. E.
Chandler, than that each man shall be
called upon to contribute to the sup
port OF government in proportion to his
ability. to pay, and ability to pay is
best determined by the income or
revenue which he enjoys
we have taxed property in the 10
llef that, In the main, it vas fair
criterion of taxable income--and this
was true when our property tax sy,-
tenn was originally adopted in sim
pier state of society.
To- av. property alone is not y
complete measure of the total income
enjoyed, and if the above tnunciatra
principle is sound, it is necessary TO
abandon the indirect property method
Of reaching income, and 20 tax income
Jirectly. There is hardly a civilized
country to-day where the income tx
does not make up an important par
of the tax system"
AS to the effect of the FEDERAL levy
on incomes, "the choice Gees not liz.
between no tax and some new form Of
taxation such as the income tax hun
between continuance of the present
hopeless system and some better and
more equitable way of raising revenue.
lf such latter plan can be devised.
are we to reject it beca"se il is al
ready employed by the Federal gov
crnment, and, in order to avoid dupli-
cation, to continue to tax the same
property IN a. manner which we admit
to be lnequitahle, and to be failure +,