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THE
Taxation Problem
PLAN AND SCOPE
of the

National Tax Association
TENTH YEAR
1916–1917
“The objective point of this work is to har-
monize the requirements of state constitutions and
statute laws, and their administration, with the
requirements of moral and economic laws. This
will result in uniform state and local tax laws,
a consummation that is of fundamental importance
to the economic welfare of the people of this
country. The policy of all state and local tax
legislation should be to require from every person
a payment for the support of the state and local
government within the jurisdiction of which he
lives or owns property.”—From BULLETIN No. 1,
1907.


THE TAX PROBLEM
Taxation, broadly speaking, measures in terms
of money, the activity and economy of government.
It is the tangible personal expression of the indi-
vidual's contact with government and of the col-
lective idea of progress. It is the thermometer by
which the people are accustomed to judge whether
they are expensively or economically governed.
Better methods of taxation are an indispensable
prerequisite of social progress.
The problem thus stated, at once suggests the
difficulties in its solution. In no field of govern-
mental activity is there more room for the display
of jealousy, class feeling, narrow thinking, demo-
gogery and political expediency. The experiences
of all governments show that these attributes of
human nature have been active in taxation. The
resulting confusion is obvious to all, and never
more so than at the present time. With the pos-
sible exception of municipal rule, taxation is the
phase of popular government in which the United
States has made its most conspicuous failure. The
absence of any broad, rational, logical, uniform
system of taxation for city, state and nation is not
only unjust theoretically and practically, but is
absolutely destructive to intelligent voting on the
merits of government, the very foundation-stone
of any republic.
THE SOLUTION
The National Tax Association presents no pana-
cea for this situation. It does not presume to re-
form mankind. It has no pet doctrines to exploit.
It recognizes the ramifications of the problem and
the existence of controversial questions. It takes
no sides. Its creed is simple. Its program is
mutual study, coöperation, education, discussion
and experiment. Its object is to make tax laws
simpler, saner, more just and more effective, but it
aims to do this only after careful consideration by
all who will bring to the inquiry honest, unselfish,
sympathetic, patriotic effort. It would re-shape
flaws in the interest of equity and truth for the
sake not only of public morality but of public
seconomy, believing that if people can be brought
to feel that there is justice; that no one is really
taxed beyond what is fair; that there is an intel-
ligent distribution of a justly gathered tax and that
this distribution in the hands of public officials is
carried out in an honest and thrifty way, the
people as a whole will be well contented and we
shall hear very much less than we do of complaint.
THE METHOD
Over a century and a quarter ago one of Amer-
ica's great statesmen said in substance that no
part of the administration of government requires
for its proper management such extensive infor-
mation and such thorough knowledge of the prin-
ciples of political economy as the business of taxa-
tion. The N. T. A. recognizes the truth of this
proposition and seeks to apply it in a practical
way. Principles are often obscure, their discovery
is a slow process, and, most important of all, their
application and administration must be entrusted
to human agencies and be subject to the defects
of such agencies. The significant portion of the
observation of the statesman quoted is in his con-
ception of taxation as a business, and it has re-
mained for this generation and this Association to
place the proper emphasis upon this aspect of the
subject. It has constantly urged that the degree
of care and expert attention be given to the ad-
ministration of taxation that is so freely conceded
to be a matter of course in other governmental
and private enterprises.
THE ANNUAL CONFERENCE
Believing in the above, the National Tax Asso-
ciation displays its chief activity through the me-
dium of an Annual Conference made up of official
delegates appointed by the executives of states and
provinces, by university presidents and by associa-
tions of chartered accountants; of state and local
tax officials; of representative officers of leading
industrial and public-service corporations; of busi-
ness men generally, lawyers and such others as
take an interest in the subject. The Annual Con-
ference is held in different parts of the country
and it is here that the important work is done.
Here in address, debate and discussion facts are
assembled and tabulated, deductions are drawn by
specialists in different departments; men are
brought together to consider and thresh out con-
troverted questions; new light is obtained and dis-
seminated to every part of the country. Men of
ability, masters in their own subject, seem to differ
materially as to the solution of some questions,
but gradually, through conference and comparison,
some reasonable solution is found for most ques-
tions. The purpose is to hear the most reliable
expert witnesses that the country can produce, to
get the facts, to get the technical statistics, to
digest the figures and to promulgate these facts and
figures and the conclusions which are to be drawn
from them, and submit them to the acid test of
public opinion and practical trial.
The N. T. A. is created to do what no layman,
no single publicist, however expert or experienced,
can hope to do for himself. z
A significant feature is to be found in the Con-
stitution of the Association, which provides that
no member shall, as such, have the right to vote in
the Conference upon a question involving an offi-
cial expression of opinion of the Conference. The
section is as follows:
“The voting power of the Conference upon an
official expression of its opinion is limited with the
purpose of safeguarding the Conference from the
possibility of having its expression of opinion in-
fluenced by any class interest; or consideration for
those who devote their time to the work or man-
agement of this association; or favor for those
who contribute money for its support.”
Of further significance is the policy that the in-
dorsement of the Conference is given only to those
ideas which have practically unanimous approval
of the voting membership at the Conference. The
object of the Association declared in the Consti-
‘tution is:
..“To formulate and announce, through the de-
liberately expressed opinion of an Annual Confer-
ence, the best informed economic thought and ad-
ministrative experience available for the correct
guidance of public opinion, legislative and adminis-
frative action on all questions pertaining to taxa-
tion, and to interstate and international comity in
taxation.” -
Educational Activities
Aside from the publication and distribution of
the proceedings of the Annual Conference, the
Association, through its membership, constantly
exerts an influence for the betterment of condi-
tions. It acts as a clearing-house for the inter-
change of ideas and information pertaining to
public finance, laying before the people of one
community the results of experience in other com-
munities. Through its inspiration and suggestion
local associations of similar purpose have been
formed in a large number of states and annual
conferences of these associations are held, the pro-
ceedings of which are made available to all. Liter-
ature is constantly being circulated and the mem-
bership is kept advised of the latest thought and
of the results of legislation throughout the coun-
try. Standing and special committees of experts
are doing effective research work during the year,
their reports being submitted to the annual confer-
ence for discussion.
Thus the following committees are at present
engaged in work preparatory to submitting reports
for consideration at the annual conference, viz.:
Committee on the Federal Inheritance Tax.
Committee to prepare a plan for a model sys-
tem of state and local taxation.
Committee to conduct an inquiry into public
expenditures. *
THE MONTHLY BULLETIN
In 1916 the realization of a plan long contem-
plated was effected. The Association began the
publication of its Monthly BULLETIN, which is
issued each month except in July, August and
September, and is distributed free to members,
and may be secured by others through subscription.
This publication has taken a permanent place as
an efficient organ for the dissemination of current
news in the field of taxation and public finance.
Its contents embrace contributed articles by ex-
perts, news items from the field, notes of books
and articles in periodicals, references to legislation
and court decisions and similar current matter.
Most important is its function as a medium by
which the taxing officials may receive and impart.
news items of administrative importance. Per-
plexing problems are constantly arising and the
official in one locality may thus secure help from
others confronted with problems similar to his
own. The BULLETIN is also naturally the official
organ in the conduct of the affairs of the Asso-
ciation. -
A BUREAU OF INFORMATION
During its ten years of activity a mass of infor-
mation relating to the actual working of tax laws
in different parts of the country, in Canada and
elsewhere has been accumulated. Much of this
appears in permanent form in the annual volumes
of the “Proceedings” and in miscellaneous printed
pamphlets; but besides this the executive officers,
through correspondence, personal contact, and
through their individual study and work, have
accumulated much practical information of condi-
tions and of facts which the investigator will find
of peculiar assistance. These officers, having had
a peculiar opportunity to secure a nation-wide sur-
vey, naturally can indicate sources of supply to
those seeking more elaborate and detailed facts
than are available in the papers read at the con-
ferences, and are able to refer inquirers to the
persons who can be of the greatest help. This ad-
vantage of membership in the Association is being
more and more appreciated, and at the present time
active and sustained correspondence is being con-
tinually carried on between members and the exec-
utive officers concerning the problems in various
States.
ANNUAL PROCEEDINGs
The most important part of its work is the pub-
lication and distribution of the volumes containing
the addresses and discussions at the Annual Con-
ferences. The volumes already issued, covering
annual conferences held in each year since 1907,
contain a vast amount of practical, up-to-date in-
formation on the subject, most of it not available
elsewhere. The volumes are cloth-bound, fully
indexed, and average approximately 500 pages each.
The price of the current volume to non-members,
postpaid, is $3; of the previous volumes, $2. The
volume is issued about the first of each year.
MEMBERSHIP-SUPPORT
For the development of its plans and purposes
above outlined, the Association earnestly seeks the
support of all persons who believe in this work
and who will coöperate in its plans to secure more
equitable and business-like methods of taxation
and more economical, and efficient management of
the fiscal affairs of the states, provinces and cities.
Already the membership includes the state taxing
officials of practically all the states and dependen-
cies of the United States and of many Canadian
provinces, numerous city and county officials, many
lawyers, accountants, tax agents of corporations,
civic and taxpayers associations, economists, stu-
dents, investigators and public-spirited business
men. Its volumes are secured regularly by prac-
tically all state libraries and state reference
bureaus, and by many university, city and local
libraries in this country and abroad.
UNIVERSITY OF MICHIG
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The Association is supported by contributions,
membership dues and through sales of its publica-
tions. To carry out its plans, a large and repre-
sentative membership is most essential. The an-
nual dues are $5.00, $1.00 of which is for one
year's subscription to the BULLETIN and are pay-
able upon application for membership and annually
thereafter. Each member is entitled to receive
free the annual volume, the monthly BULLETIN and
each pamphlet issued. He may purchase back vol-
umes and extra copies of the current volume at
$1.00 each. Subscription to monthly BULLETIN to
non-members, $2.00.
Correspondence concerning membership matters,
the purchase of volumes and similar details should
be addressed to the Treasurer. Other correspond-
ence should be addressed to the Secretary. Checks
should be made payable to the Treasurer.
A. E. HOLCOMB, Treasurer,
195 Broadway, New York.
FRED R. FAIRCHILD, Secretary,
Yale Station, New Haven, Conn.
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NATIONAL TAX ASSOCIATION
OFFICERS–1916-1917
President
SAMUEL T. Howe, Chairman State Tax Com-
mission, Topeka, Kansas.
Vice-President
CHARLEs J. BULLock, Professor of Economics,
Harvard University, Cambridge, Mass.
Secretary
Fred R. Fairchild, Professor of Political Econ-
omy, Yale University, New Haven, Ct.
Treasurer
Alfred E. Holcomb, Assistant Secretary Amer-
ican Telephone & Telegraph Co., 195 Broadway,
New York City.
EXECUTIVE COMMITTEE
EX-OFFICIO
PRESIDENT, VICE-PRESIDENT, SECRETARY AND TREAS-
URER, AND -
AlleN R. Foote, Columbus, Ohio,
PROFEssor E. R. A. SELIGMAN, Columbia Uni-
versity, ex-Presidents.
ELECTIVE
Term Expiring 1917
John E. BRINDLEY,
Professor of Economics, Iowa State College.
John S. Edwards,
Member State Tax Commission of Florida.
JAMEs A. Houck, -
Member Indiana State Board of Tax Commis-
sioners.
- Term Expiring 1918
WillIAM BAILEY,
President State Board of Equalization of Utah.
ZENAs W. Bliss, -
Chairman Board of Tax Commissioners of
Rhode Island. t
OSCAR LESER, ... ."
Member State Tax Commission of Maryland.
Term Expiring 1919
J. W. BRIslawN, -
Member State Board of Tax Commissioners
of Washington. ** * -
Thomas W. SIMs, * ...
Chairman State Board of Equalization of Ala-
bama. .
GEORGE G. TUNELL,
Tax Commissioner Atchison, Topeka & Santa
Fe Railway. .