Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-19
BY THOMAS n. HENRY.

teries of a higher power
and in the present state OF science,
are beyond human comprehension. The
tlird-well. taxation systems are man.
made instruments necessary for the
perpetuation of social structures. Yes
they are almost as incomprehenslble
as their two companion fates, whose
divine origin is admitted.
There has been much plunging into
the abstruse depths of taxation during
the past week on the part of the po-
litical scientists gathered at the annual
Institute of Public Affairs at the Uni
versity of Virginia. and they have
brought to the surface some rather
startling revelations. The structure OF
society has undergone fundamental
changes during the present century.
but the theory of taxation has Jagged.
Tax systems in any democratic gov
eminent - whether it be that Of the
American republic or that Of New
England village-are intended to be
fair. Society has agreed to certain
communal undertakings which VIII
make easier the matter of living TO.
rether 49, such as the maintenance Of
police forces. the construction OF roacS
and the support Of schools. 1hess
activities cost money, which must DC
collected from the individual members
Of the social structure. Devisers OF
taxation systems have sought earnest
" IN work out ways for the fair APP
nortionment of these expenses among
those who will benefit by the results
and from whom it will be possible 10
collect payments.
Direct Tax on Property.
The simplest suggestion for 1aE
apportionment is that of direct TAX
on unit values of tangible property
such as land. houses and live STOCK,
Under this system the indivldual WOULD
nav not only according to his anllltEy'
but according to the Dement'S received,
because the communal undertakings
presumably would increase the value OF
his property. This is the system which
generally has been followed IN the
United States. II has worked very well.
Temporary inequalities have arisen II
ALWAYS has been possible either 10
adjust them or let them adjust them
selves. Through a somewhat compll-
Gated process. all classes OF society
nave been taxed. directly or indirectly
for the public good. There mas peen
ma escane. The renter has paid the tax
IN the house in which he lives IN tne
form Of higher rent. The customer mas
Maid the tax on the grocers store II
the form of higher prices for sugar ana
.alt The town Clweller has paid the
farmers tax on his cows by giving
fraction of a cent extra for each quart
of milk. It has al worked perfectly 50
long as the economic machine ran
smoothly
But taxation has been an extremely
ahstrllse subject just the same. IL mas
remained quite over the head OF the
average citizen. whose only functions
have bsen to cuss and to pay. For tnat
matter. is has been over the heads oil
most nuhlic officials. A real intimate
understanding of the problems mas
been confined to handful OF economic
specialists
when first became a member Of
the MARYLAND Tax Commission, Judge
Oscar ISaser of Baltimore told the eX-
perts gathered around table mere, /
was rather nervous because l knew
nothing whatsoever of taxation. But
( soon found out that il was only ncccS-
/ sarv RI knnw very little to become an
expert-for nobody else knew anything
at all
Real Estate Fair Index.
In the days when the tax systems OF
most American States and communl-
ties we're adopted real estate was far
index This was Nation OF farmers
and villagers, Land was the most gen.
eral medium of investment. The eco
nomic status of the average individual
was indicated pretty accurately by the
number of his acres and the size OF
his house. II he happened to be
mechanic or member OF one OF the
learned professions. he usually rented
according to the size of his income. The
man who paid an apparently undue
amount of the total tax levy always was
able To "rass the buck" to renters and
purchasers and they in turn we're able
to pass on the tax to their interiors IN
the economic scale. But the tax be-
came smaller and smaller as ii per-
meated downward until the poorer citi-
zens-renters Of poor houses and BUYERS
of cheap enthusiastically paid
very little. Actually everybody general
" paid In proportion 70 the benefits
they received from government.
The poor laborer with a dozen chill
dren, of course. didn't pay for the pub
lie school system in proportion to the
cost of educating those children. But
then ne was not the only beneficiary of
their education II was to the advan-
tage Of society as whole To have an
educated citisenrv. so all society, through
taxation. helped the poor laborer keep
his little ONES IN school and demanded
that he send them there.
This system worked very well as long
as land remained an accurate index of
community benefits and community re-
sponSibilitS
Times Have Changed,
But, insist the experts at the Institute
of Public Affairs. this no longer is ex-
actly TRUE. Times have changed. The
economic machine has been remodeled.
Some serious inequalities have resulted.
Take. for example. the farmer, He Is
taxed on the extent and value OF his
land. and there is no escape. He cant
pick up or 10 acres and hide them
under the bed when the assessor comes
around, Theoretically he should ac-
cept the visit Of the assessor gracefully,
give him q drink Of cider, pay the bill
and then add II TO the price charged
for his milk and corn Thus the tax
would be passed on to those who do
not own land~-the merchant. the
banker and the eandlestick maker. That
Is exactly what government assumes
tibet the farmer will do, II is perfectly
fair
The only difficulty is that the farmer
can't do It. The prices of his products
are fixed by memorable economic laws
He might as we'll try TO make the sun
stand still as try To collect an extra
cents a hushel on corn 10 nay his
taxes There is nobody 10 whom he
can pass the huck'-as the tenement
house owner In town can pass along
the tax to his renters.
Passed on ia Farmer.
Meanwhile, everybody else is passing
along taxes to the farmer, He is made
to pay part OF the taxes on store
houses for agricultural machinery. fer
tiliaer factories, grocery stores and
clothing emporiums where his wife buys
her silk gowns, But he himself stands
at the bottom of the line, There is no