The New York herald., 1922-01-26

which was better adapted to the closing
years OF the nineteenth century.
"As an immediate means of improve
menl the committee recommends that the
entire series of complicated States taxes
on public utilities be at once abandoned,
with the exception of the special fran
chise tax, and that i'm substitution there
for gross net tax be established,
against which special franchise taxes.
pending the passage of the constitutional
amendment. may be used as an offset"
Continuing its recommendations, the
committee states:
I'VE recommend the abandonment of
the fragments of the dscredited personal
property tax. What there Is left Of
personal property taxation consists in
part of the stock in trade of small busi-
ness men whom the committee now pro-
poses to reach by more equitable
The cities mainly Interested in what re-
mains of the personal property tax gen.
orally are Buffalo and New York.
Opposes Direct Realty Tax.
"The States finances should be ad-
justed 80. as to render unnecessary the
imposition of the usual direct State tax
on the real property of the localities.
Az the present time real estate in New
York is in an especially exposed posi-
tion, bearing the full brunt of the mount
ing costs of government 1t is now
practically the sole shock absorber. The
committee recommends a readjustment
which will distribute the shock among
the various parts of the revenue system.
assessments of real property
throughout many sections of the State
appear to be involved in much incom-
;V,5, IN
be needed is a larger assessment dis
trict and more skilled and permanent
assessment service Tho attainment of
this involves the adoption Of constitu-
tional amendment.
'"rhe State Tax Commission should be
provided with small force of engineers
capable of assisting the local assessors
In the difficult technical task of valung
the properties of public utility corpora
tions. 1t further recommends the SIM
plifcation of the present antiquated and
complicated methods of collecting local
taxes on the property of public utility
corporations.
DepIorc Growing Exemptions.
1.-THE growth of exemptions from taxa
tion in the State Is proceeding at an
alarming rate. 1t appears that from a
fifth to fourth of all real property in
the State, for example, now pays nc
taxes. and the State is constantly being
urged to extend the exemptions under
the income tax as well as under other
source of revenue. This whole practice
makes for inequality and for unfair adj
ditions to the burden upon those who get
no exemptions.
"The committee urges the Legislature
to cooperate with the Federal Govern
ment in an effort to secure the elmina-
tion of the present exemption under the
income tax of interest on Government
securities both State and national.
"Old methods of taxing banks and
other financial institutions produces very
unequal results. Financial institutions
must be taxed by a new method on the
basis of their net income. This will
make 1t possible to treat financial in
stitutions with more exact fairness as
compared with other businesses.
To Reach state Banks.
"If reasonable plan is blocked
! through the shortsighted opposition OF
small section of the financial COM
munity the committee purposes to pre-
vent the evasion of a fair share of the
governmental burden by validating the
traditional national bank tax through
return to the taxation of all moneyed
capital competing with national banks
at the same rate as that imposed upon
national banks themselves. The COM
mittee regards this rs not so desirable
an alternative as their own plan, but
| a necessary one to prevent an unjustii-
J able evasion.
"The committee has uncovered a
startling inequality in the tax resting
] upon public utilities The present sys.