20 



TWENTY-NINTH FRUIT-GROWERS' CONVENTION. 



While a tax upon individual incomes is generally conceded to be just 

 and equitable in principle, it has been received with disfavor and 

 regarded as impractical in its operation. It is apparent, however, to 

 the careful student of commonwealth taxation, that because of its justice 

 and the increasing efficiency of State administrative methods that are 

 being evolved, the idea of a limited supplementary State income tax is 

 growing in favor and coming to be more generally regarded as a prac- 

 tical measure under State supervision. Such a tax has always pre- 

 vailed in Massachusetts; the present law of that commonwealth, which 

 the Legislature recently refused to abandon, imposing a tax upon so 

 much of the income of a profession, trade, or employment as exceeds 

 the sum of $2,000, but exempting incomes derived from property subject 

 to taxation. While this law is imperfectly administered, it is not 

 infrequently suggested by eminent authorities upon the subject that a 

 supplementary income tax of that character, imposed directly by the 

 States, under modern methods of administration, would become an 

 efficient and practical source of State revenue. In conjunction with 

 the principle of taxing corporations upon earning capacity, it seems 

 destined to receive increasing consideration in the several States. 



I deem it unnecessary to go into further details, as it is manifest, 

 from what I have said, that the farmer pays a pro rata of tax greatly 

 out of proportion to any other class of taxpayers, the value of his prop- 

 erty and his ability being considered. This, undoubtedly, is due to 

 the defective system of taxation in California, a system utterly unsuited 

 to the needs and economic conditions of a great and progressive State 

 and people. In consequence of the changes made b}^ the State Board 

 of Equalization in this year's assessment, never in the history of the 

 State have the incidents of an assessment, under our defective system 

 of taxation, been so glaringly brought to public attention, never has 

 the public mind been so well prepared to consider, investigate, and 

 approve a better system, when presented, than now. Let the farmers 

 of California be the first to advocate the necessary change in our tax 

 system. It is their right, it is their duty to do it. 



MR. STEPHENS. Mr. President, I move that the paper be received 

 and placed on file, and that a committee of five be appointed by the 

 Chair to consider and hereafter report upon the matters set forth 

 therein. 



Adopted. 



