PROBLEMS OF TAX BURDEN 279 
rates and the income from such property is taxed at the 
income tax rate, it follows that the tangible property is over- 
taxed as compared with the intangibles escaping general 
property taxation. The problem of the respective burdens 
on tangible and intangible property is not so much a ques- 
tion of tax burdens as a question of property escaping taxa- 
tion. Such discrepancies in burdens as exist are largely the 
result of the widespread failure of assessors to assess intangi- 
ble forms of property. As will be set forth later, a practical 
method of dealing with this problem is to tax intangible 
forms of property by means of an income tax and to confine 
the general property tax to real estate and other tangible 
forms of property. At the present time, the burden on 
taxed intangible property is no doubt much greater on the 
average than is the burden on real estate, and the greatest 
discrepancy exists between those intangibles which are as- 
sessed for the general property tax and those which escape 
assessment. Certainly the difference between no property 
taxation and taxation at full value in the case of intangibles 
is much greater than any discrepancy between real estate 
taxes that may be attributed to differences in assessment 
ratios. By abandoning general property taxation of intangi- 
bles, it should at least be possible to place the taxation of 
such property on a uniform basis, which evidently cannot be 
accomplished under present methods. 
It might be contended that, if such a policy were adopted, 
the discrepancy between the taxes on tangible property and 
those on intangible property would be so great as to con- 
stitute a serious problem. It must be kept in mind, however, 
that property taxes, particularly those on real estate, are 
capitalized at least in part, and that in progressive urban 
communities the general property tax on rented property 
is shifted in large part to the tenants. Also, it is not possible 
to bring about absolute uniformity in the taxation of two 
kinds of property so different in nature as real estate and 
intangibles. The abandonment of general property taxation 
of intangibles would at least seem to represent a practical 
approach to the problem, in that it would tend to eliminate 
the wide discrepancy between the intangibles that are 
assessed and those that are not assessed.