Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1922-03-03
MORE JUST SYSTEM
OF TAXATION NEEDED

tirely just A given tax only APP
proxihates justice-and the approx
nation of the general property tax
is rather distant Hence, in those
periods when tax works in a worse
manner than usual. and when the
tax is very heavy, the injustice to
many taxpayers is very great.
Farmers Burdened
THAT is the situation now, when
many farmers and certain other real
estate owners find themselves bur-
dened with heavy taxes and with lit
, tie income from their property with
which to meet these taxes.
In what ways may we improve
the tax system of Washington? A
word of explanation of terms may
be helpful. Under the general prop
erty tax there are three main classes
of property: real estate, which needs
no definition; tangible personal
property, which includes such items
as household goods, farm imple-
ments, stocks of merchandise, ma
chinery, etc; intangible personal
property, sometimes called 'intangi-
bles, which include items like mo-
ney book credits, promissory notes,
mortgages, bonds, shares of stock,
| etc
There are those who would make
our general tax more of a general
property tax. That is, they would
include for taxation types of prop
erty that are now exempt in our
state, such as money and credits, and
would make strong efforts to find
and tax all intangible property that
| is supposed by law to be taxed. These
people also insist that all real estate
and tangible personal property sub
ject to taxation should be listed and
fairly and efficiently assessed,
Need Proper Assessing
With one-half of this program
| am in fullest sympathy. | believe
that such property as we, after care
full study, decide to tax, should be
found and properly assessed. With
out doubt there is much room for
improvement in the assessment OF
property-even real estate. Consid-
cradle tangible property escapes as
sessment and undoubtedly much
property is assessed through ignor-
ance and lack of nerve on the part
Of the assessor, at values far under
its true worth
With the other half of the pro-
gram | have no sympathy. Certain
types of property should not be taxed
as property. Washington went in
the proper direction when we ex-
empted money and credits, as such, |
from taxation. We should have gone
step further, as we shall see a little
later. In eXempting money and cred
its from taxation we were simply rec
ognizing in law what was largely an
existing fact.
The taxation of intangible prop
erty has never been a success in the
United States. And since the civil
war, with high rates of taxation. il
has been largely a farce In other
words, with high rates of taxation
the effort to tax intangibles simply
breaks down. Further, with high
rates of taxation certain types of
tangible personal property cannot be
successfully taxed.
Can't Reach Personal Goods
ut would be easy to give you
mass of figures showing the failure
to reach personal property, and par
ticularly intangibles, in an effective
manner under the general property
tax system. A few words may not
be amiss to show the reason for this
failure to tax personal property ade-
quately. Intangible property-that
is, money in the bank, or loaned out
on promissory notes. good bonds and
stocks-before the war would not
yield on an average over four to six
or seven per cent When the general
property tax rate is around 80 and
GO mills it takes from 40 to so per
cent of the earnings of those intangi-
bles even when the rate is levied ON
a so per cent valuation But in some
states moneys and credits We're
taxed at their full face value.
1T is obvious that under such
rates of taxation people who can
conceal their intangible property
(and the greater portion OF it can
be concealed) viii not make q re-
turn to the assessor. Certain types
OF tangible personal property, such
as machinery. stocks of merchandise,
farm implements etc. probably
i