New-York tribune., 1919-03-10
Proposed Law Would En-.
danger Republican Party
in State, Says Controller
Urges Upward Revision
Believes Present Regulations
Can Be Amended to
Provide Needed Revenue

State Controller Travis says that the
passage at this time of the proposed
l12 per cent income tax law, favored
by Senator Davenport, chairman of the
Committee on Taxation and Retrench-
ment, will be disastrous to the Repub-
llcan party, and that no radical chanre
IN the existing laws should be made
until the Federal income tax law is re-
duced.
1T is fact generally admitted that
real estate is carrying a heavy burden
OF taxation, and also it is fact that
the state and cities need additional
revenue, but the income tax proposed
by Senator Davenport should not he
pressed at this time" said Mr.. Travis
yesterday.
we might better increase the states
income by methods less radical than
the one proposed. I am fully aware
that Senator Davenport has had the
counsel OF DR. Selgman, of Columbia,
and Of DR.. Bullock, of Harvard, and
that the hearings before his committee
have been illuminating | also know
the attitude Of these men before their
employment by the state I doubt if
experts on taxation better qualified
could have been obtained
AT this time | am considering the
psychological effect Of passing a radi-
cally new income tax law, while the
Federal government is at the same time
using Its broader powers to enforce
It's own income tax law
Would Tax $1,000 Incomes
The proposed new law may tax in
comes above $1,000, which means that
nearly every one is going to be hit.
The inauguration of a new state in
come tax should be deferred until peo-
pie have become used to the Federal
tax.
"Professor Seligman, who is assist
ing in drafting the new law. in his
published essays explains whv state
administration of an income tax law is
more difficult than administration by
the Federal government. In fact, he
reaches the conclusion. and 81 ev-
presses it:
""Ihat the income tax of the future
in this country is to be a national and
not state income tax
ne inheritance tax law can be
amended so as to yield $4,000 900 more
annually. We do not tax bcouests TO
benevolent, charitable, educational and
kindred institutions of other states and
countries. We should tax such be-
quests. Nearly all the other states do
1t. Within the last year two estates.
from which large sums went to Yale
and Harvard, would have paid upward
Of 100000
Il am confident that the investme
IoI \ !
increased by at least $4,OOO,0OO.
Higher Rate on Autos
"A moderate upward revision of the
tax or license on vehicles will increase
the revenue of the state $260O,00
lavishly for improved roads. No class
of individuals receives greater benefit
from improved highways than auto.
mobile owners. A tax on the business
or aHlcklng in notwithstanding
drinks viii produce $600O,d 900. The
organization corporation tax can be
doubled, and its yield increased ST.
100000.
"The stock transfer law can be
amended without increasing the rate
and its yield increased S600,OO0 an
huaIly. The existing law imposes no
tax on shares of stock borrowed. The
l SNcid dCt UOcS embrace Such tax.
| favor tax of cents a share per
500 par value or fraction thereof of
each share of stock borrowed, and like
wise on each share returned.
"lf the 3 per cent tax on net in
comes Of certain corporations be cx-
tended to business corporations, as
soclatlons, partnerships and business
generally, it Will yield an additional
S12,oo0,00 If in addition the rate be
increased to per cent it will yield
S2O,O00,000 more.
"An increase in the rate from / per
cent to IA per cent in the tax on
shares Of stock of banks and trust
companies and on the surplus of saw
ings banks will yield additional reve-
nue. in the sum of $2,375 900 annually,
and perhaps more
"Any objection to the foregoing
suggestions on the score that they but
add to the patchwork tax laws of the
state IS answered by the fact that the
changes | have proposed can be made
without creating the impression among
the voters Of the state that an un-
warranted amount Of revenue is
sought by new methods and collected
from people Of small incomes, who.
not being used to paying an income
tax, will resent the imposition"