Nor does the proposed system by any means either subsidize the forest grower or assure him a profit. It merely puts on a basis similar to that of other enterprises a business more greatly handicapped by long-deferred returns, risk of loss, uncertainty of future prices, and continued current expense without current revenue. Only escape from fire and high future stumpage prices will permit profit at best. Otherwise, since the tax is definite and not upon income, the forest grower will pay the community for the honor of providing it a resource at his own expense.
It is believed, however, that a more fortunate outcome is sufficiently promised in this region of rapid growth if we remove the single fatal handicap of uncertain confiscatory taxation.
VIEWS OF EXPERT AUTHORITIES
THEODORE ROOSEVELT: Second only in importance to good fire laws well enforced is the enactment of tax laws which will permit the perpetuation of existing forests by use.
GIFFORD PINCHOT: Land bearing forests should be taxed annually on the land value alone, and the timber crop should be taxed when cut, so private forestry may be encouraged.
NORTH AMERICAN CONSERVATION CONFERENCE, Washington, D. C.: Believing that excessive taxation on standing timber privately owned is a potent cause of forest destruction by increasing the cost of maintaining growing forests, we agree in the wisdom and justice of separating the taxation of timber land from the taxation of timber growing upon it, and adjusting both in such manner as to encourage forest conservation and forest growing.
The private owners of land unsuited to agriculture, once forested and now impoverished or denuded, should be encouraged by practical instruction, adjustment of taxation, and in other proper ways, to undertake the reforesting thereof.
| GIFFORD PINCHOT, | |
| ROBERT BACON, | |
| JAMES R. GARFIELD, | |
| Commissioners representing the United States. | |
| SYDNEY FISHER, | |
| CLIFFORD SIFTON, | |
| HENRI S. BOLAND, | |
| Commissioners representing the Dominion of Canada. | |
| ROMULU ESCOBAR, | |
| MIGUEL A. DE QUEVEDO, | |
| CARLOS SELLERIER, | |
| Commissioners representing the Republic of Mexico. | |
| E. H. OUTERBRIDGE, | |
| Commissioner representing the Colony of Newfoundland. | |
FRED. R. FAIRCHILD, Professor of Economics, Yale University, member International Tax Conference: Probably nothing more effectually discourages investment than uncertainty as to future costs. And whatever may be said of the present system of taxation, there can be no question of its arbitrariness and uncertainty. If to all the other risks of forestry we add uncertainty as to what the taxes are going to be, we cannot blame investors for some hesitation in embarking on an enterprise which may have to pay taxes fifty years before the returns come in. And more than this; the investor cannot safely base his calculations on the continuance of the present lenient administration of the property tax. As has been shown, the tendency today is toward a stricter enforcement of the law and a heavier burden of taxation.
State constitutions stand today in the way of many plans for reform in State and local taxation. The movement toward their amendment is growing as part of the general programme of tax reform.