636 MISC. PUBLICATION 218, U.S. DEPT. OF AGRICULTURE 
demonstrated that the princi ipal instrument of local taxation—the 
business of feat erowing or the conservative management of mature 
timber. The public has an interest in the conservative management 
of existing forest resources and the growing of forests on cut-over 
and waste lands where conditions are suitable, for the sake of water- 
shed protection and other indirect benefits as well as to provide an 
adequate supply of timber products. It follows that the taxation of 
forests is distinctly a matter of public interest. 
It is essential to visualize the forest-tax problem in its true propor- 
tions. Taxation is only one of the carrying charges that tend to 
bring about the rapid cutting of virgin timber and only one of the 
reasons why private capital is not. embarking in timber-growing 
enterprises. ‘There is no magic in forest-tax reform. N evertheless, 
so far as taxation has any undue influence in bringing about the over- 
cutting of mature forests, the public has an interest in its reform. As 
to the cut-over regions, it has been made evident that, whatever 
other causes may now be deterring investment in forest growing, no 
widespread development can be expected so long as the present 
methods of taxation continue. Even in these regions there are those 
who are interested in forest growing, and their number may be 
expected to increase. To such the existing tax system presents what 
may be in many cases an insuperable obstacle. 
The goal of tax reform, from the viewpoint of the public interest 
in the forests, is such a system of public finance and taxation as will 
limit the tax burden to the requirements of efficient and economical 
government and will impose it by methods which, while requiring a 
just contribution from the owners of forest property, will place no 
special obstacle (beyond what any just tax must impose) in the way 
of the best use of the forests and forest lands from the standpoint of 
the public interest. In striving toward this goal, it is necessary to 
keep in view, not merely the forests and their taxes, but the whole 
structure of American State and local finance, including the public 
functions for which tax money is spent and the tax contributions of 
all elements of the community. Forest-tax reform should thus be 
based on broad principles; it should be not opportunistic but far- 
sighted, destined to fit the taxation of the forests into a sound and 
enduring American system of State and local finance. To this end 
the following suggestions are offered for the consideration of the 
people and the legislatures of the several States. 
Although it has been shown that the property tax is chiefly respon- 
sible for the special problem of forest taxation, there is possibility of 
improvement with respect to certain other taxes. Recommendations 
with reference to these other taxes will be reviewed before summa- 
rizing proposed improvements and modifications in the property tax. 
The income tax, in the usual forms now in use, is generally favor- 
able to forestry. There is, however, room for eventual improvement 
through giving recognition to methods of accounting for depletion 
which will be better adapted to sustained yield forests. This is not 
a problem that demands immediate attention. 
Payment of death taxes should be allowed in installments equal to 
at least 1 percent of the value of the forest each year until the amount 
due is paid or until the death of the beneficiary. Should the bene- 
ficiary die before all the installments have been paid, the remaining 
