The New York herald., 1922-05-12
State and Federal Income Taxes
In the following letter there is not
mere misconception of fact; there is
confusion of principle.

In the following letter there is not
mere misconception of fact; there Is
confusion of principle:
ITO THE New YORK HERALD: 1
have been very much interested in
various editorial articles praising
Governor MILLER for savings in New
York State. il is my opinion. however,
that until these savings are reflected
in lower State income tax or COM
plete elimination OF the same there is
no justification for any great amount
of commendation for either the Gov
ernor or the Republican party.
II would appreciate your opinion
as to the justification OF New York
State in maintaining higher basic
tax than the Federal Government.
this referring. of course. to the differ
ence in personal family deductions.
JOHN W. ArHERToN.
"l49 Fourth avenue"
AS for the elimination Of the State
income tax, the undeniably necessary
revenues now raised from that source
would have to be found, If the income
tax were abandoned, in some other
tax sources. Governments will be
able to live without taxes when man
is able to live without food. Nobody
living and working in tax needing
community can escape paying taxes.
If he does not pay them one way he
pays them another, although he
never may see the tax if it is secreted
in the rent he pays, the price Of his
food or his general cost Of living.
The more deeply the tax is secreted
the surer he is to pay the more
heavily.
Whether the family deduction per-
missible to taxpayers is slightly
higher or slightly lower in one tax
system than in another is not the
test Of the merits of either measure
as to sound economies or as to square
deal government. What rate is i'm
posed, what the taxpayer gives up
under the rate, how the tax payments
are used by the Government that
takes them from the taxpayer-these
are the true test.
AS matter of fact, the basic State
income tax, at only per cent. OF
net incomes up to $10,000-$10,000
beyond all allowable exemptions and
deductions--is microscopically lower
than the Federal income tax, not alone
for the man who pays taxes on thou
sands of dollars of such net income,
but for the man who pays taxes only
ON hundreds OF dollars of such net
income. 1t is, furthermore, incom-
parably lighter than any income tax
we are familiar with in Europe,
where the science and practice of in
come taxation is proverb.
Unfortunately, it is not to be gain
said that there are blemishes in the
New York income tax itself and in
the administration Of it-blemishes
of policy and blemishes Of morals.
For the State income tax measure
taxes a person on some Of the very
taxes he pays, taxes him on some Of
the very losses he SWEEPSTAKES him
on fictitious incomes and profits he
has never had, never seen and never
will see.
Those most warmly appreciative OF
the scientific principles and sound
reasoning underlying and interweav-
ing the New York State income tax
as a whole must frankly deprecate
the faults and errors which make it
guilty of unjust and contemplate
exactions little more respectable than
petty larceny.
But even this does not alter the
fact that, compared with the national
income tax, the State income tax is
as refined gold to dross. 1t does not
leave room for doubt that the open
State income tax costs the taxpay-
ers of New York one-half at most Of
what it would cost them for the State
to raise the same $30,000.000 from
them in hidden taxes-the hidden
taxes that hit everybody's pocket on
every side and every occasion.