Report of the Commission On Revenue And Taxation of the State of California : 1906
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EEPOET OP COMMISSION ON REVENUE AND TAXATION. 175 any argument based on the stipposition that equity in taxation is better measured by comparison with net earnings than with gross earnings on property, has been exposed above. We must take into consider- ation every possible detail, such as character of traffic, property used, net and gross earnings, etc., before reaching a conclusion. The whole question as to the relative fairness of a gross earnings tax as between the different roads is so imp...ortant that it can not be passed over with a mere generalization. Although the two great systems, the Southern Pacific and the Santa Fe, together pay by far the greater part of all the taxes (1903, 94%; 1904, 94%; and in 1905, 93%), it is nevertheless important that the new tax system should not work an injustice to the smaller roads, even though they pay only 6% or 7% of the total taxes. The proportion that they pay is increasing each year as they grow in size and business. Our two tables — the one on page 104 and the one constructed from it on page 166— include all the taxes paid by the railroads, State, county and municipal together, in 1904.
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