Evening star., 1934-12-06

To the Editor of The Star:
The subject of taxation is one Of
national Importance because Of its di-
rect effect on all Of US, whether we
own property or not. 1t has a direct
bearing on our daily lives and because
OF its present confused, haphazard
system, has a demoralizing effect on
business enterprise and industry, and
has q tendency to neutralize much Of
the great effort and endeavor now be-
ing focused on the recovery of busi-
ness.
Great strides have been made, under
President Roosevelt's administration.
toward equitable revision of income
tax rates. We are surely attaining a
fairer distribution of assessment in
this problem.
The Emergency Relief agencies or
ganized by the administration in con-
nection with individual ownership Of
our land and properties have gone far
toward accomplishing general re-
covery.
But years before the depression
came over US the method Of taxing
real estate and other property was
wrong and lacking in efficiency, and
will continue to be an annoying influ-
ence until some definite action is in
stituted to rectify and improve this
condition.
Chief among the defects of the pres
ent system as applied to real estate
are: The impossibility of applying
taxes impartially or equitably; the fact
that real estate Is made to carry more
than its just share of the burden Of
taxation and ineffectiveness in finding
and dealing with concealed taxable
property. whether tangible or intan-
gible. Even in what We could call
normal times, different parcels Of
real estate fluctuate in value. which
makes it difncult, If not impossible, for
the assessor to keep an intelligent
check on values or to assess fair tax
thereon. The owner who is fortunate
in having his property and rentals in
crease in value escapes with q small
tax, but the owner whose property de-
preciates must pay more than he
should.
These static rates, enforced even
when property is idle, unproductive
and unremunerative, have caused
widespread and hopeless misery during
these recent taut years, for where
there is no income there can be no
payment of debts. Thousands Of prop
erty owners who in times Of normal
production and demand would have
been spending money In construction
and improvement have been impeding
the progress of recovery in an effort
to collect suf1cient to meet these
taxes and retain their property.
The writer believes that real estate.
improved or unimproved, should bear
no tax, but that the tax should be as
sessed on the income from real estate.
Homes and domestic property should
be taxed on their utility or use value.
estate should be limited to taxation
of its earnings or income. This would
be an elastic measure, as In principle
the percentage of assessed taxation
applied thereto would be uniform In
all cases, and the revenue derived
therefrom would only vary according
to the decreased or increased income
from property. but would be . more
equitable system than taxing the prop
erty regardless Of whether or not It
Is productive or n-productive, as at
present.
The introduction Of q change in tax
alton of such Nationwide scope would
of necessity involve . vast amount Of
research and study and the employ
ment of expert engineers, controlled by
the Federal Government. The very fact
Of it, uniformity Of humane principle