The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851, 1845-08-27
From DE SomeTssi Democratic {
The Federal Tax Law.

From dse Somerset Democratic Union.
The Federal Tax Law.
There is feature of the tax law passed by the
last federal Legislature which deserves special at
tention as furnishing evidence of the design OF
its concociors to relieve capital atihe expense OF
labor.
By reference TO its provisions i will be seen,
that while it Processes to tax all the different
modes of investing capital for profit, It carefully
avoids bringing the capital employed IN The dli-
ierent Banking institutions which are springing
up (under its twin sister in iniquity, "Kelley'sI
Banking Law'') upon the duplicate for taxaiioni
aud TO leave no doubt that II was The Intention
of the Legislature to exempt Banking capital
from Taxation, we need only refer 10 the 6Olh
section OF the bank law which proves that "each
Banking company organized under this (that(
act, accepting thereof and complying with ITS pro-
visions, shall semi-annually on the days designa-
ted in The 59th section for declaring dividends,
sci off TO the State SIX per cenum ON the prohls
deducing from them the expenses and asce tam
led losses of the company Tor six months next
preceding ,chich sum or dmonm so set of shall
be in lieu of all tareS to tchich said company or
the stockholders thereof on account OF stock o1rn-
ed therein ,0ould otherwise be subject"
Thus while The diferenr branches of industry
are taxed on the amount of capital employed:-
Bankers ''who toll not, neither do they spin" but
who nevertheless dress sin silk and fine linen"
and "fare sumptuously every day" are only re-
Iqured to pay tax on the amount OF profits they
wiring from an oppressed community
! The difference may be summed up thus:
FARMERS
pay taxes on the "true value in money" OF Their
! land and one half of the amount they may re-
turn as standing on interest.
MERCHANTS
are allowed to return half their capital employed
in business and are taxed On one half the amount
returned: equal to one-iourh of their whole cap
Iital.
BANKERS
are not taxed on their ca ,,itaL 0t all but only on
the profits they make.
And yet the whig prints tell us that this is a
law for the relief OF labor at the expense OF cap
u Hal!u
Let us suppose a case by way of further Illus
ltratlon:-
: Two men start business under this law, each
having capital of $4,000. One OF them, MIR
/, A., eXpends his money in purchasing and STOCK
ing farm, intending by the employment OF his
labor 10 support his family and add something tc
the general mass of wealth Mr.. b., on The 9th
er hand, not liking hard work, invests his Slo,
r 600 in Bank sock.
2 The assessor in his annual round passes by
the banker, (HE has been elevated above those
who are under the eye Of the tax gatherer) ant
; comes to Mr.. A, the farmer; he values his land
= houses, secks, &c. and puts down his $lO,0Ol
!, for taxation. The year rolls round, crops have
5 been bad, disease has seized upon his cattle, Il
a Bank future has taken place, or some dlsaste
f has DeGllen A and instead Of making money, he
$ has lost $4,000. No natter the farmer must pay
his tax on the whole Sl,00O-and if he does
4 not, the light crop he may have been able t.
Iraise-or the few cattle which escaped disease
= must be levied on and sold.
, Mr.. B has also been unfortunate-true 1--WE
: will suppose) he has lost nothlng-but the eX
h penses Of carrying on the Bank have absorbed
C his profits, and he stands precisely as he d'
I when he invested his money. Does he pay
. TAX? Oh, no, he has not made any prohls, AM
= unless he does, the tax gatherer cannot reac
!. him.
V But suppose a different state of things an
d that the farmer and the banker have each clear
: ed SIX per cent. on their capitals, after deducn
ICAp hbu looo 'liSy wv" ~
e amount TO government for the protection attort
IS ed their business by the laws. We think we hea
; some farmer exclaim in the honesty of h's heart
: Friend you are unacquanted with whigery ifyo
v suppose that by any accident they place
y Banker on an equality with laboring mani
N The case you have supposed the account won
Of stand thus,
n The farmer would pay for state, canal, couI
)ty, township, road school, and poor house pu
poses about OH an average II cents OIL the do
lar valuation
- This on $4,000 would be $l25,oO
:. The Banker would pay N lieu OF
- all this per cent. on his profits and
~ those being ON ten thousand dollars
~ at & per cent, o'uo
o, His tax would be 5000
M Difference against the farmer, $o9,oo
~ '~o In other words, the farmers interest on |
~ @IOO0O after deductinu his tax would be q