The midland journal. (Rising Sun, Md.) 1885-1947, 1922-02-10
Foreign Advertising Repre- sentative
THE ANERiCANP PRESS ASSOCIATIONS
WHAT IS TAXATION?


There is probably no subjec!
which is more talked about and less
understood than taxation.f Yet it
really a simple matter What is
taxation? Nothing more or les
than payment for the services OF
government. The community per
forms certain common services for
it's citizens and collects the funds
for these services by levying taxes
How should these taxes be levied
Should it be according to ability to
pay? Or according to value re-
ceived? How do we pay for any
thing else we buy? Why accord
ing to value received. of course. The
millionaire and the scrubwoman pa
the same prices for everything they
buy, from yeast cakes to houses, pro-
vided they, are of the same duality
The Western World, at least, has
long since discarded the ability to
pay" theory in merchandising and
has settled fast by the doctrine of
zone price to ALL" according to
value received.
1t is commonly supposed that the
same principle applies to our meth
cd of levying taxes, but a little re
Election will show that it does not
We assess all forms of property witG
the idea that all receive the benefitc
of government alike. But do. they :?
Let us see.
Baltimore spent some twenty mil
lions building an up-to-date sewer
age system a few years ago. For
the cost and maintenance of this
system she taxes real estate anG
merchandise alike.
Now merchandise is not properly
related to taxation. The building
of sewers, the paving and lighting
OF streets does not add one cent to
the value of merchandise. 1t is
never worth more than it would cost
to replace. Even police and fire
protection does not increase its
value. In rural communities where,
neither is present merchandise coste,
as much as it does in the great cen
tres of population.
On the other hand real estate is
directly enhanced in value by the
building of sewers, by smooth
streets and by every wise municipal
expenditure. When we say real
estate" however, we mean land
Buildings are labor products. like
merchandise. The value of build
ing is what it would cost to replace.
No more. AS was said of merchan-
disc, even an up-to-date fire depart
ment never adds one cent to the
worth of a building; but, by max ing
the town safer and more desirable
place to live in, adds to the value of
land.
The building is only worth its re-
placement value, sometimes not that
much. but never any more. The in
creased value which the fire depart
ment and all other municipal act;y.
tiles give to town, attaches to the
site which the building stands on
and to other sites as we'll. Suppose
the building should burn down.
what would be lost? Merely it's
construction cost. The commYr ~
values of streets. schools e de-
partment, water, anS ali hnsia
would be shown in lie high sai,
which the site would p1i.g
II land is the only for; rron-
erty which receives val, from
municipal expenditures. should not
that bear the main brm Of tav-
alton? In most other cities = does.
But here in Baltimore buildings and
personal property are taxed the
heaviest.
If we would relieve the CO
their present heavy burdens "
would stimulate business ana build
ing activity. so that land or real es.
tate values would increase and
easily bear larger share of tases
The exemption of manufactures
increased land values here.
The exemption of merchandise
will do likewise Maryland Tax Re-
form Association.