New-York tribune., 1922-05-28
Tax on Realty
Has Reached
High Limit
Realty Board Calls Attention
10 Danger and Says New
Revenues Must Be Found
10 Relieve the Burdens

The taxation Of real estate In the
City Of New York has reached its
limit says the Real Estate Board Of
New York. Notwithstanding an in
creased assessment Of nearly $4,000
100000 based on temporary and chang
ing conditions, the Board Of Estimate
was Obliged to omit mandatory items
and to secure an act Of the Legislature
making county charges city charges to
prevent an Illegal tax levy. Not only
the constitutional limit Of per cent
has been reached. but the economic
Emit. As incomes are decreasing, ad-
dltional taxation could not be passed
on TO the tenant. The universal tcsti-
mony Of operating real estate com
panies IS that AT present one-third Of
the net income from improved real es-
tate is taken for taxation. 1t should be
rememb bered, also, that there arc yari-
Gus other charges against real prop-
erfy, such as water rates, assessments
for improvements which may or may
not benefit the property and assess
InentS for Improvements which are
deemed to be of benefit to the entire
community. This tremendous increase
IN the expense Of government and re
suitant taxation is due almost entirely
to the demand for what is called so
cal welfare service. The benefits from
TINS service, if there are benetits, 90
almost entirely To the comparatively
poor in the community. People who
are called the middle class and the r5ch
are only in very slight degree bene-'
hted by the free service rendered by
the municipalitv.
Reduce Income Exemption
"The Real Estate Board of .<ew York
IS not IN opposition to the rendering Of
this service by the community gener-
ally, although il is on record a
against certain kinds of service but
1t does feel that some portion o.
the cost Of such service should be
borne directly by the people benefited
1t has ben suggested by distinguished
tax exports, that this could best be done
by lowering the exemption in the state
income tax law to lower amount than
the present exemption. There are in
the State Of New York !. SOC. 600 or more
families and yet only about 100000 in
dlvldals paid an income tax to the state
These exports say that if the exemption
from income tax was lowered 10 say
$500 and the provisions Of the law
more vigorously enforced. a very large
majority Of the families in the state
would be taxable. As the average in
come Of the heads of families in this
state Is estimated At about 81 500. there
NOQ4u Dc INOuS@UUS OF N and women
not now taxable who would pay. and in
addition many more thousands not
heads OF families who would be taxable
if the law was changed. As to the
ability of the compa aratively poor to
pay such a tax. there can be no doubt
In the United States last year over
$4,000, 100000 was spent for what are
known as semi-luXuries. The aggre-
gate amount is made up OF items rang
ing from S52 100000 for chewing gum
10 the enormous sums paid moving pic
ture companies.
Direct Tax Would Teach Lesson
when people are taxed directly thew
are apt to take a greater interest il
government and TO be more critical
of the expense and the administration
OF government. The lack Of feeling
of responsibility by people generally.
is the bane of indirect taxation. People
seldom worry over forms OF indirect
taxation or as to how the moneys
raised in such a way are spent.
Whereas they are directly interested
IN tho taxes which they directly paw.
THE Real Estate Board Of New
York believes that if the constantly in
creaslng demand for what is known
as social welfare legislation IS to oe
satisfied. other sources of income must
be found unless real estate is to be
come an Improbable and undesirable
investment