CHAPTER III . 1

HOW TO DO IT.

A popular vote against taxing personal property.—The Linson bill of1891, and what its effect would have been.—Effect of taxing indebted-ness.—Examples.—Taxing capital drives it away.—Injury of this.—Self-imposed restrictions to successful competition.—To tax loans isto tax the borrower.—This is from the nature of things.—The effect ofthis on financial institutions.—The Chamber of Commerce took thisground.—The law on taxing fictitious property tried.—How the tax isshifted.—Charged over with a profit.— Unavoidable.—How personalproperty escapes.—The mortgageor protects his money.—Still the ‘ ‘ hay-seed” will try to catch it.—His success.—Poll taxes.—The conclusion ofthe State commissioners.—A better way.—Tax real estate rental values,which are an indication of wealth, better than income tax.—Indorsedby Mill.—Personal property causes these values.—Application in New York State.—Effects.—Would relieve rural communities.—Clever to getcheated.—All will contribute.—Should not contribute twice.—Objec-tions answered.—How our present way affects builders.—How toassess.—Assessors’ oaths.

Only one who is in close touch with the farmers canrealize how deadly in earnest they are about taxation.

1 The material for this chapter is mostly taken from the Report of theTax Law Revision Commissioners, David A. Wells and others, appointedby act of the legislature of the State of New York , in 1870. The chaptergives the leading points of the argument. It is believed that every argu-ment is presented in some part of this volume, some of the matter beingalmost directly quoted.