The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-02-07
TAX REFORM.


The New York Tax Reform associa-
ton. in its annual report just issued,
comes out in advocacy of the abolition
OF all taxes on personal property of
any kind. The raising of revenue en-
tirely by levies on land and incomes
is favored.
Since there is in progress continu
ously in this country an effort to
reach a more just, equitable and eff
Client scheme of taxation than has yet
been evolved, the suggestion of the
New York association seems worthy
of more than passing notice.
For a number of years the state
has followed the policy of substituting
what have been termed "fixed and en-
forceable taxes for the cold general
property tax on personal property.
With the enactment of the income tax
on manufacturing and mercantile cor
porations in 1917. it's subsequent ex-
tension to all business corporations,
and the individual income tax of 1919,
this policy has been changed to the
extent of replacing the personal prop
erty tax by income taxes, rather than
by specific taxes on property.
Now that the state is committed to
the income tax policy, it is
argued, this should be carried
out to it's logical conclusion. and be
made a complete substitute for
the old personal property tax and the
exemption of intangibles given by the
law taxing individual incomes should
be extended to include all tangible per-
sonal property. This has been done in
the case of business corporations.
which are exempted from all taxes on
their personal property. tangible and
intangible, by reason of paying the in
come tax. Individuals, it is held.
should have the same relief from as
sessment difficulties and inequalities.
The bulk of the personal property
remaining liable to taxation as such
consists of merchandise owned by in
dIviduals and partnerships; furniture
in excess of the $1,000 exemption, ar
ticIes of personal adornment, live
stock and farm implements and ma
chinery.
Household furniture, it Is declared,
should be entirely exempt; its value
cannot be-, determined accurately, it
does not yield an income, to house it
requires an expenditure of money that
will have been taxed as income, and
the owner pays directly or indirectly
the real estate tax on the premises in
which the furniture is kept. The
value of the premises is usually pro-
portionate to the furniture.
Farm implements and livestock are
hardly ever assessed in New York. as
the most casual inspection of assess
ment rolls shows. If the farmer gets
an income from their use above a mere
living he will pay an income tax; in
any event. he will pay a tax on his
farm that is a far better measure of
his fair constitution towards local ex-
penses. Every reason for exempting
factory machinery applies equally
used in agriculture.
To repeal all provisions for the as
ssssment and taxation of personal
property, it is pointed out, would do
away with many inequalities and an
noyances, reduce the expense of local
assessments. and make only a slight
difference in revenue, that could If
necessary be easily made up by a re-
adjustment of the income tax rates.
But If the yield from the income tax
comes up to the amounts predicted
this would not be necessary.
To abolish the personal property tax
entirety would carry out the income
tax policy, and leave most individuals
and business corporations subject only
to the real estate tax and the income
tax.