Year: 1871

PROPOSED REMEDY-THE WANT OF EQUITY


THE ALLEGED IMPoLICY OF TAXING PER-


sONAL PROPERTY-CURIOsTIE OF THE SYS-


TEN.


BOsToN, July 21-Supplementary TO the an
nua report Of the Boston Auditor Of Accounts just is
sued there Il elaborate and interesting article by Mr..
Thomas Hills, Chairman of the Board OF Assessors,
the subject OF taxes paid personal property by the
citizens Of Boston, compared with those paid in other
portions OF the country and also s0mo argumontatye
remarks with reference 10 the details and operation


the Massachusetts, system of taxation the ideas Of which
well calculated TO attract the attention OF all
ested in political economy, especially relates t.
alton. After referring to the fact that the laws
the best that could be made or that their operation
could be made efficient. the writor considers tho
general objections to the Massachusetts, system, and


proposed remedy. He says the Tax Commissioners ad-
init that the laws OF the State based the equitable
theory, that each person in the community
| shall pay his pro rata share Of the public
expenditure, according 10 the value of his property
But they say that a certa9 class OF wealth. generally
estimated be equal in every civilized nation 10 about
One-haf OF the whole property OF the community, can
and greater less extent does, escape taxation by
perjury by conceament fraudulent otherwise, and by
conflicting laws and DECISIONS 1t follows, as necessary
consequence that certain amount Of crime, and GER
tan inequality OF taxation results they therefore con-
clude that would DO better to drop the whole OF tho
personal property the community from the assessment
roll with tho exception that which represented by
certain corporations chartered by the state aud base all
taxes real estate aOne real estate and persons
in such proportion that their ability to pay taxes may
be by value of the real estate they occupy


To prove the correctness of his position, the author
examines critically the legal decisions which seem TO
sustain the views of the Commissioners, and then dis
the impossiby OF assessnglpersonal property
equtably. He says:


But whatever doubts they may entertain as to tho
| dpCaOnS the
they have presented the Commissioners claim that con-
alterations OF equity and the mpos3bty Of the enact
and execution of 9py laws which shall reach and
uniformly tax this GLASS 6 property justes them N re-
cOmmeding that the taxation of all pefs6Ddi Property
shall be Discontinued As in republic the people are
the Of power It fair TO assume that their
representatives generally make laws for the collection OF
revenue which are based upon considerations Of equity,
they may affect the members OF the body pol
title, for whom they enacted 1t is probable there
fore. that the equity which In the opinion of the Com.
missoncrs i violated by the tax laws of the several
States. Is that International ana interstate cOhl,
TO which ailusion has previously been made. IL
would be matter IOr great JOclhg II ~ cOulu " ue
onstrated that the principles OF the golden rule were
alike the best policy for nations States aud individuals
But while history does not record single revenue law
it s probable that the great sisterhOod Of states will
watch with no little interest and curiosity tue result IN
that community which shall first base its legislation for
revenue upon consderation' OF equity to those beyond


np3ssh,y Of compelling fSpi,a M IN the ior OF per per
that the OF such property would be runOus
TO the holders who are their own citizens, and deil
mental to tho best interests Of the community, they
touch subject which all States and nations willing
! 10 patiently and carefully consider.


First as 10 the npossbity. In nothing, perhaps, IL
the mperectOn of governmental machinery and the lin
iatiOn human resources more conspicuous than IN the
Government makes a tariff It's officers will hardly pro-
pose TO yield mp se large income that results from lts
operations, because frauds sometimes successful. en-
bezzements not always discovered and the whole
power of the Government cannot prevent smuggling
law made for the suppression OF cOunterfeng will not
be abrogaed, because the officers Of the Government
in convcting but small cent of those who make,
knowingly pass spurious money. without attempting
the Commissioners admit Is unque,t0naby the best In
theory and the efficient i'm practice stopping to
! point out the comparatively unimpOrtant errors into
orr statute II ia worth brief examination TO see low far
laws that have been made and borne by free people
without material change for many generations,
PEELED personal property to bear It's share of the public
burden And here in stepping from the field OF statement
and theory deal with facts and figures, material adj
vantage can be claimed over the position OF the New
York Commissioners.


1t would that almost the only statistics that
lated 10 their State upon which they could rely,
were those of the censustGkers BY their own adnis
contained valuations based upon actual values. And as
if to make the necessity for reform stand upon other te
timony than their own Investigations they give upon
their tepage extract from speech OF one of their
public men, which declares that their assessments
tissue Of iaschood 1t was probably for these reasons
that the Commissioners, In comparing their State
and her municipalities with those beyond her borders,
ing the raised by the number Of inhabitants of
the community upon whom the taxation was laid The
I'M oHe emnoD tbe theory tbst substa6iiay a
certain amount of wealth would always be found
he held in every community by given number OF in
diyduas; or upon the ground that all that may
be paid simply moneys advanced by the holders OF
property upon which the taxes are levied 70 he re-
paid themby those by whom that property shall be used
or consumed The first position can hardly be seriously
entertained by any who has given attention TO the
statistics the population and wealth OF the cOmnun
ties OF the world. The second will ind advocates who
will claim that all taxes upon property are paid by con-
sumers and that the consumption OF given number OF
persons in one community equal TO the consumption OF
the number Of persons in another community ana
consequently that the burden Of taxation can be mea
surcd per capita This course OF reasoning Is open to
similar objections 10 those which would prove the first
position unsound Inc COnmsslQneIs IA Tue report APP
prove the opinion of financial writer who asserts that
universally the market value OF the aggregate OF land
and that OF the aggrogae OF productive capital are
equal This theory requires tnat t1e value OF al!
es HsSe charaSeT ct and declares that the sum total
thus obtained VIII equal the value OF the lana IN any


the market value OF land is merely the reflection of the
value OF tho productive capital placed upon It, ana It's
enacted in lS6 the assessors Of the Commonwealth are
required separately value lands and buildings. The
70 actual market value that the statistics
sustain the position under the theory advanced, which
demonsirates Viz that Boston has fully in as
sessipg Its personal estate 70 an amount largely exceed
whole personal property of the municipality The
detail OF the assessment OF that year, aggregated
real estate and 800 personal property
This large dsIroportion OF the value Of the buildings
and the assessed personal property OF the city over the
value OF the land must be m further increased by the
addition Of SOOO OF corporate stocks, the personal
property Of citizens of Boston, In Massachusetts, cOrpO
rations every dollar OF which Is taxed for her benefit
although this amount, and also one OF S000OOO Of Ma
tional Bank stock held In the Boston banks by nOnres
dents OF the State form part of the S2s000 OF per
sonal property included IN the valuation The percent
age OF the OF the assessed valuation OF personal
property real throughout Massachusetts being
stkingy that the city OF Boston (he difference
being only OF per cent? would Indicate that slmi-
lar results would follow the analysis OF the assessment
OF the Commonwealth. n view OF these facts IL would
that the theory that the value OF the land and the
personal property Of communities equal, and upon
which the Commissioners base OF their conclusions,
must be abandoned, the point admitted, that Is pos
sibe in State that has been dstn guished throughout
its history for ardent love OF liberty 10 compel per
sonal property bear large share Of the public bur
den There would appear be escape from this pO-
what has been by persons