The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-02
TRAVIS DISCUSSES
STATE TAX PROBLEM
Says Deficits Must Be Met
Without Overwhelming
Real Estate.
SUGGESTS SUBSTITUTES
Expresses Doubt Regarding
Efficacy Of the Proposed
Income Tax.
SUGGESTS SUBSTITUTES

Estate ConptroIler.)

Inonuouo uenCit caused Dy war einer-
gency appropriations OF $4,000. 900 and
tho approaching loss Of 81. ooo. 900 ex-
cise tax without tncreas sing the States
direct tax on realty. The average tax
payer. in spite Of the Importance OF this
problem, has shown but little interest in
its solution. This apathy on the part
of tho public. however. has served as an
incentive to the fiscal authorities OF the
State to redouble their energies toward
working out satisfactory answer.
Al the outset let II be said that during
the last few years our taxpayers have
observed the State undertaking mann
moth and costly enterprises. such as the
barge canal. forest preserve and high
way Improvement. and they have en-
couraged these measures by their vote.
During the same time the Legislature
has broadened the scope of govern
mental functions, and these same citi-
zens have looked on with approval as
the State extended It's control for better
protection of labor. improvement of
health, advancement OF agriculture and
the promotion OF education. Last years
budget. for example. included almost
every kind of aid and protection, and
this required considerable additional
money.
Heavy Costs Not Due to Waste.
II meant, moreover. that with this in
creased complexity OF government taxes
and public expenditures must continue to
grow at an alarming rate. No one wants
higher taxes. But every one wants the
things that necessitates high taxes.
However. these war emergency appro-
vvAa nd he Az oh
by the vote Of the people have recently
brought to the attention of the taxpayers
the causes for the rapid increase In the
States financial obligations. These
citizens appreciate now as never be-
fore that this additional cost was not
due to the waste and eStravagance OF
public officials. but largely because the
people themselves have declared their de-
sire for improvements which. so far.
have created a funded debt exceeding
$685., 900 900
Again. they realize that this sum Of
money was borrowed. Thus there was
assumed an enormous annual interest
obligation OF So, 100000 to liqudate the
debt. This situation will require the
wisest financing for years to come In
order TO keep the bulk of taxation at the
minimum. The people of New York
understand that they have definitely
committed themselves to these great en-
terprises and improvements, They also
appreciate that their costs have passed
beyond the control of the officials whom
they elected and that all the latter can
do Is to be dligent in the exercise or
economy measured at best in thousands
OF dollars as against fixed oDllgauohs
OF millions annually.
Resides the increased financial re-
quirements caused by these numerous
bond issues OF recent years there are
the additional administrative expenses
resulting from new activities or the
State which have been enacted into law
as the result OF popular demands. These
are the workmen's compensation law.
widows pension, better protection OF
labor and public health, public defence
&c. Tho cost OF maintaining the states
wards In hospitals. prisons and other IN
stitutlons has increased in the same pro-
portion as the cost OF living outside. and
furthermore the population of these In
situations, especially in the hospitals for
the insane, has grown rapidly.
omciaIs Seek Solution.
How to meet these increasing obli-
cations without resorting further TO
taxation upon real estate. already heav-
fly burdened by the taxes of municipali-
ties is the problem to which State ont-
Legislature have been directing their
attention during the past few weeks
Within this time many model schemes OF
taxation have been suggested. but II IS
the opinion OF those in charge or the
States finances that SUFFICIENT revenue
could be obtained at the present time
without causing any great disturbance
TO the present business condition now
facing serious readtustments.
paYnra these IL should Dc
borne in mind that for many years New
York's government has been supported
largely by revenues derived from spe-
cialx~xes on, liquor, corporations IN
heTitances. stock transmits. AID In ter
years automobiles, exemption or secured
debts. Investments. and sundry others
constituting the States wealth other
than in real estate. During the last two
wears rates on some OF these taxes have
been increased, and now that the states
greatest single source of income. excise
(liauor) tax, will be soon lost IL will be
necessary to further increase these or
add other sources II the real estate Is
20 be exempted further. This could be
accomplished as follows:
The inheritance (transfer) tax law
could be amended 80 as 10 yield at least
$4,000 900 more annually. New YORK
does not tax requests to benevolent,
educational and kindred institutions OF
other States, nor Is a tax imposed upon
the estates OF non-residents In respect to
money or ,ntangibles physically present
within the State. Other common
wealths insist upon such tax, and It
Is time that New York should follow
suit. The present investment tax IL per-
missive, but It Is difficult to compel
owners of intangibles TO contribute as
they should for the support OF the
State. II the present law were made
mandatory and suitable penalties pro-
vided at least s4.oO0,Ooo more could be
edded.
MotorIsts should Fay share.
Within the last twenty years over
$4,000, 900 has been expended or
pledged by the State for improved high
ways and about si2.0O0.000 in addition
FOR maintenance and interest each year,
Last year motorists contributed about
- 200. 900, half OF which was shared
with the communities. leaving only ST.
900 as their contribution In return
for the lavish sums expended primarily
for their benefit II the State should
adopt an annual tax similar to that inn-
posed In all others at least So 800. 900
more revenue could be secured from this
source,
This year New York win lose spprexi-