FARMERS' INSTITUTES. 205 



THE MICHIGAN SYSTEM. 



The State of Micliigaii, with its townships, counties and cities, like 

 nearlj' every other state in the union, gets most of its revenue from one 

 source — the general property tax. It is a tax upon all property whatso- 

 ever, real or personal, except that expressly exempted, and brings into 

 the State treasury two-thirds of the required revenue each year, and into 

 the county and township treasuries practically their entire supply. Its 

 history in this country is not extensive. It was hardly known in the time 

 of Washington, and its present develoi)ment was not reached until the 

 civil war. It is thought to be peculiarly equitable in form, since it seeks 

 to tax all property, wherever found, at a uniform rate. Much as this tax 

 is used, however, it has been bitterly condemned. It has been called an 

 inquisitorial tax, a tax on honesty, a tax so iniquitous that every civilized 

 nation has discarded it except our own. The leading writer on taxation 

 in this country says: ''The general property t.ax, as administered in 

 this country today, beyond doubt is the worst tax in the civilized world." 

 Another says: "Words cannot be found suflllciently strong to express 

 the just criticisms that can be made against it." 



Let us examine the accusations brought against this tax upon which 

 we are so dependent, note its faults, and consider the remedies suggested 

 for them. 



CRITICISMS ON THE GENERAL PROPERTY TAX. 



The tax is first criticised because it allows personal property to escape 

 taxation. In theory the tax burden is borne by both kinds of property — 

 personal and real. In practice personal property is hard to find and 

 escapes assessment, while real property, being easily seen bears the bur- 

 den intended for both. It is everywhere asserted that personal property 

 in the shape of bonds, stocks, moneys, mortgages and merchandise escape 

 taxation, and probably no one doubts longer that such is the case. In 

 Ohio, under a rigorous tax spy and sworn property list method of search- 

 ing for this kind of wealth, a recent tax commission reports that "while 

 half the wealth of the State is personal property, only a mere bagatelle 

 pays taxes — something like four-fifths going untaxed." The amount of 

 personal property on the assessment rolls of states where estimates have 

 been made has grown steadily less for years. In 1860, Cincinnati 

 returned for assessment |G7,000,000 of personal property. In 1892, 

 twenty-five years later, this amount had decreased to $45,000,000 on the 

 assessment rolls. TJeal property during this same time had risen in 

 assessment value from .1i;r)7,000,o6o to $144,000,000. In the State of New 

 York, the home of the capitalist, Ihe assessed personal property in 1869 

 was $4.S0,000,000. In 1875, it had fallen to $407,000,000. In' 1885, to 

 1332,000,000— a decline of $100,000,000 of reported ])ersonal property dur- 

 ing a period of great railroad expansion and general prosperity. During 

 the same time real estate was advanced in tax paving ability from 

 $532,000,000 to $762,000,000. or an increase of $230,000,000. In the whole 

 United States, the assessed value of personal propertv decreased from 

 $5,101,000,000 in 1860 to $3,866,000,000 in 1880, real estate on the 

 other hand making proportionate rise. It is for these T'^\asons that 

 the farmer claims that he pays more taxes than he should. So 



