Again, there {9 no satistnetory assessment of the value of property, There is also a Kind of intangible: property which cannot be taxed. For instance, the name of an old. and well-known firm, or goodwill," {s worth money, and may prove to be more valuable than the tangible property. Taxation in the Settlement fs Based on expenses, and this again unjust, for a poor family may have to spend/all it earns and, on the other liliand, rich people may spend esx and. save more, Taxes levied on products are not universal, because they do not reach every one.. For instance, one who does not smoke or drink will not have to pay taxes on tobacco and wine, Salt, matches, and other daily necessities Ihave been taxed, These levies are unfair, as poor people may Fequire more of these commodities than do the rich, Taxation in China is more or less based on products and is not a good system, in the opinion of Dr, Pan. The Government needs more funds times of emergency" and. its Feventies become precarious, This will not be the case with the income tax, as it is more dependable and elastic, Also, the tax may be reduced when the country is prosperous and the Government is rich, Requirements of a Good Tax A good tax, according to Dr. Pan, must have universality, equality, elastic city, and ease of management, A nation al tax is expected from every ellizen who is able to pay. In the present taxation system, the distribution of burden is not in proportion to one's ability to pay, and many forms. of taxes do not reach everyone, 'There should be a fair ratio of taxes to be paid by poor and rich men, Dr. Pan briefly explained the forms of income, such as gross and nett, regular and irregular, earned "and unearned. In America,' ho said, over 2,000 pages are required to explain which are taxable items, The ta tion of nett income is just in theory, but in China the Government has no Information gf personal assets of affairs. and it is very difficult to enforce this system. It applies to professional men, however, beginning. January 1 next year, and it will {nvolve a good deal of accounting.
Text read from the printed page and cleaned; old type leaves the occasional error.