The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-16
ness. with only ten mill levy. is being

ness. with only ten mill levy, is being
increased from year to year.
recognition Of the impossibiiity OF
taxing movables at a high rate has led
70 the plan OF taxing different kinds Of
properly at different rates. the theory
being to compel tangible and intangible
personally to make as large a contribu.
ton In taxes as its owners will pay In
preference to removing the property from
the jurisdiction. Several States have
uied this plan with some degree OF
success, although the amount of revenue
IS not materially Increased. Thus. Ken.
lucky, after year of experience with
ciassiiied taxation. Is considering new
inheritance and corporation taxes.
lndiana's tax commission preclpitated
bitter tight over a similar plan for
low rate taxes on personality, but farm.
ers and real estate interests claim 1t is
inequitable to require 100 per cent. as
sessuent on realty and only 25 per
cent on Intangible, the argument being
along the line of the old general property
tax. The bill has been amended to
assess all property at so per cent. OF
value and provide stronger central con-
troll of local assessments.
Theory of old Property Tax.
1hs one distinct tendency in all
thought on tax matters seems to be
toward frank recognition OF the fact
mat we have always intended to require
all citizens to pay taxes according to
their ability. 1t Is realized more and
more that even the old general property
tax was supposed to be based on this
principle. Tho failure OF the general
property tax results from the develop
mont of large class of taxable incomes
which cannot be reached by any prop
erty tax.
II Is not surprising therefore to find
general income taxes advocated as the
ultimate equalizer of the tax burden in
legislative bills and otherwise In New
York, North Dakota, Minnesota, Oregon
OHIO. Indiana. Washington, Illinois
Michigan, Montana and the list increases
each week. In several States 1t will he
necessary to amend the constitution to
permit OF the income tax.
It Is quite certain that New York.
and North Dakota will levy taxes on
income this year. In New York the
Joint legislative committee has proposed
a tax on personal incomes which follows
the plan of the Federal income tax. II
adopted this plan in preference to that
OF the Advisory Council of Real Estate
interests. which suggested that the State
law should stand independent OF the
Federal law. The Advisory Council IA
vored this plan in view Of the need for
collecting about S50,0o0,000 under the
measure and also because of the FREE
quent changes which have been made
in both the Federal law and in the rul-
ings by the Treasury Department. With
out going into the many details OF the
bill. the following unique features were
Incorporated in the plan:
/. A general income tax was recon-
mended so that incomes which now es.
cape SO largely under the New York
law would be forced to bear a reason
able proportion of the total tax levy,
II 10 well known that personal incomes
IN New York are unusually large from
personal service and these incomes are
enjoyed in not a few cases by persons
who reside in other States and therefore
pay nothing for the very expensive local
and State government in the locality
which makes their incomes possible. Ii
short the main burden OF this income
tax would fall on the very class most
Favored by the present property tax
whereas the property tax would con-
tpue to fall most heavily on small
owners whom the income tax would
touch very lightly.
:. A general tax on the income of botl-
incorporated and unincorporated bust
ness. None OF the great industrial States
tax business as little as does the State
OF New York, and 1t is deemed desirable
10 remove the great inequalities between
different types OF business under the
present tax law. The councils bill also
provided that localities might add to the
rate on business incomes.
3. Finally it was provided that the
tax levy on real property should be
limited.