TAXATION. IN CALIFORNIA.
To THE EDITOR OF THE "SPECTATOR."] SIB,—As an old reader of the Spectator, may I suggest as an interesting subject for an article the principles and amount of taxation in one or two representative countries, more especially in the United States, as compared. with this country ? In a letter just received from a friend in California, he says I. will be surprised to hear that he pays over $1,400 (2300 sterling) for what he calls city and county taxes annually,—that is, apart from what he pays indirectly to the central government-through its tariff imposts. He is assessed on all real property at half its value, and on personal property including money lying in the bank, at its full value. Capital out on mortgage is assessed, and has to be paid on whether the interest is being paid or not. My friend does not tell me thew capital amount on which he Pays the £300, but I know him not to be a wealthy man. Certainly he.would be a decidedly wealthy man who had to pay £300 taxation in this country. He complains that it is a very different thing taxing a man's principal to taxing his income, and thinks he would have to go to Turkey to. find • such treatment elsewhere. He calls it a system of IA:ander, and ascribes it to a bad class of Irish having attained power in California. I may mention that my friend was a good Liberal in this country, but since living in the States he has developed a hearty hatred of democracy. I would send you his letter but he tells me to keep it private, for some one- else over there got into trouble through a letter from him finding its way into an English paper. He was accused of running down the country, and my friend says those in power can make things very disagreeable for any one who incurs their ill-will. Of course the taxation of principal, instead of income need involve no injustice, and would be a relief _to the professional and trading classes, but it is startling to hear of a family man of moderate means having to pay, £300 in that way. Last week we were hearing of Mr. Astor raising his voice in' a similar complaint, so evidently capitalists, small and large, do not have it all their own way in the States, as most of ns, I think, imagine. In an article you might tell us something on this subject that would be quite fresh to many of your readers, and would be particularly interesting just now when we are thinking of the Budget.— I am, Sir, drc.,
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