The Washington herald., 1920-11-21
REALTY BEARS
UNFAIR BURDEN
Owners Of Property and
Students Of Taxation
Point Change.

ANo6A cstotc pcofs ov Pct Sehs "
the tax burden of the country. q
recent report OF the taxation COM
mittee of the National Association
of Real Estate Boards shows. Fred
e. Taylor. president of the board,
points out In an open letter In the
current issue OF the National Real
Estate Journal. The report fur
ther shows that the remaining 20
per cent is distributed between per-
sonal property. intangibles. banks.
public service and miscellaneous
subjects. 1t contends that the tax
burden should be boyne proportion
ateiy as follows: Real estate, sb
per cent; business, 80 per cent; mer-
camille commodities. Is per cent;
personal income, IL per cent, ana
miscellaneous subjects, per cent.
Property owners and real estate
men. as well as students OF taxa
tion," says Taylor. in commenting
on these statistics, 'are realizing
more than ever the need Of a change
in the methods now followed in
raising revenue for public use. Any
one who has ever given deliberate
thought to the subject knows that
real estate has too long carried an
unfair proportion Of the tax burden.
Orisin of Nolan BiIl.
There is a group OF manufac-
turers who make the claim that real
| estate pays no share of the Fed
eral taxes and through their infiu-
ence the Nolan bill has been intro
duced In Congress. ignoring the
fact that real estate carries nearly
all OF the State, county and mu-
nicipal tax burden, these manufac-
turers contend that the real prop
erty Of the United States has an
aggregate value of about 125,0oo,-
900, 900, and that a / per cent tax
on all feal estate holdings over $lo.-
! GOO would brink an annual income
of $1,000. 900. 900. Inasmuch as the
annual expenditures OF the United
States government are now about
81. .0oo, ,o00,0 900 or $4,000, ,00o. 900. the
effect Of such legislation as the
Nolan bill would be to reduce Fed
eral taxes about 20 or 25 per cent
they argue.
Real estate did not profit by the
war activities. being about the only
commodity which did not soar In
price. On the other hand, mos'
manufacturing concerns did prom
limmeasurably as result OF wal
influences. On the basis of this sim
pie comparison and in view OF the
additional fact that real estate al
ready bears a considerable majority
of all local taxes, il seems to Vi
that il would be most unfair Il
shift a still greater tax levy upor
real property, which is already bur
dened heavily.
'Furthermore, the income from
real estate Is subject to the in
come and excess profits taxes, ant
all rental agents are obliged Z
make sworn statements to the gov
ernment in all instances where rea
property earns more than n mod
crate income.
Power of Destruction.
I THE time has arrived when tn
, American people should give seriou
, consideration to the present ten
! denotes of taxation and ponder owe
the fact that the power to tax car
ries with it the power to destro!
, The public must be educated and
is incumbent upon the realtors
the country to suggest such legis
latlOn or CORRECTIVE ihtaSuiS Go oS " -
, insure a safe and sensible cours
: for the future.
'1.anu Is of sucn nature that !
. cannot be hidden from tax assessor
: and tax collectors, which furnishe
a ready explanation of the in
: equality in taxes. but the real estat
men and property owners themselve
, are partly to blame, for they hav
not been sufficiently energetic an
! scientific in placing the true fact
before the general public and fight
ing vigorously for the principle
!, which they know to be right.
: by assembling facts and figure
which cannot be disputed by an
E fair-minded person. the National Al
sociation of Real Estate Board
hopes to prove this year that it
fundamentally unfair and unsoun
. to ask real estate to carry sti
heavier burdens and to attempt. {
a the same time. to limit arbitraril
|, by law the property return tn;
: may be received for real estate il
vestments. We hope TO prove col
}. clusively that the tax pendulu
= should be started back in the 9TH
[. direction"