Richmond daily times. [volume] (Richmond [Va.]) 1850-1853, 1852-03-31

"eiduse when expressly forbids us to
assess tax on agricultural productions. have
been content to refer it to just anaoeies.
The 25th clause of the 4th article nrov;dos
that:
"1he General Assembly may levy tax ON in,
comes, salaries and licenses: but no tax shall be
levied on property from which any income SO tax
ed is derived, or on the capital invested in the
trade or business in respect to which the license
so taxed is issued.''
Inc spirit OF the constitution is here revealed
III opposition to the process and practice of double
taxes. Where it is allowed to tax license and
the tax actually assessed the constitution forbids
expressly that another or different tax shall be le-
wed on the capital employedin the business which
Is licensed. That would be- to tax the subject and
the issue, double tax, prohibited by the clause.
Where tax is levied ON an income, no other or
different tax shall be levied the property from
| which such income is derived That would be-
to tax the subject and the issue double tax, pro-
hlolted by the clause. Salaries being compen-
satlon Tor personal services, the provisions of the
clause could not be extended to them but the sp-
rt OF the constitution is clearly evinced against the
process and practice Of double taxes. The capi
taI OF the merchant is protected against tit cam
not be taxed on license and nd valorem rs proner
ty-funded capital, invested in public or private
securities cannot be taxed OF its income and then
| taxed ad valorem property. Each would he n |
double tax and stands condemned and prohibited
by the constitution. Shall it be assumed that az
rcultural capital alone was designed to be exposed
TO the Heeclng process! Is the farmer to be sim |
gled out as the solitary victim to be sacrificed to the
dark divinity Of taxes? insist that by fair and
Just analogy, agricultural capital shall be exempt
irom double taxes and when taxed as property nd
Valorem, shall not be again taxed in it's issue,
winch Is agricultural productions, merely because
1t exists In form to be reached by the ad yalorem
principle. though it be admitted that it could not
rod
tlonal exemption for agricultural productions
might be rested on these analogies but PROMISE
to prosecute the investigation somewhat further
IL Is 1nslstedb by gentlemen of high considerations
that agricultural productions being PROPERTY are
made subjects of taxation by the clause which de-
ciafes that ''all property, other than slaves, shall
oe taxed IN proportion to its value, and that being
thas made subjects of taxation, they would be
necessarily assessed with taxes unless made the
subjects OF special exemption under the clause
which provides that 'taxable property (other than
saves) may be exempted from taxation by the vote
OF majority of the whole number of members
elected to each House of the General Assembly,
ana II these were the only clauses affecting the
subject, perhaps their position might be regarded
as unassailabe; but clause has been quoted AREA
dy which provides that tax may be levied on
incomes, ''but no tax shall be levied on property
from which any income so taxed is derived -
NOW II agricultural productions can be defined
income, it will obviously result that, if tax be ,
levied on them, any tax levied the property
from winch they spring, will stand RENTED byt
terms OF the clause, and the constitutional aues-
ton is resolved into an inquiry whether agrcultu
raj productions be income. t
Gentlemen insist they are not-that the term .,
anco2ae is referabe only to receipts of money de-
rived from some business or occupation; and that,
by consequence, the clause has application to )
the question OF taxing agricultural productions
Vhotn be,I ,lol4 L.. 1
OF the term lncome it was certainly intended by y
some members OF the Convention to refer to agri-
cultural productions because, in the Debates the
nuashlps OF taxing them, after levying a tax on
the farm which produced them, was adduced as t
an example to prove the necessity of adopting the =
clause and 1t Is submitted that the clause itself v
excludes the idea that income refers only to mo-
ney derived from some business or occupation, =
because 1t expressly recognizes income as an issue
devived from property. N
The Legislative report contained this clause = a
"lhe Legislature shall have power to levy an in Il
come tax and tax on salaries, but no tax shall be
levied on incomes derived from property other
wise taxed" This clause was struck from the =
report In committee of the whole, in connection Il
with the clause establishing the ad valorem prin- tt
clple soon after the subject of taxation was taken
up. LII was struck out on my notion though [ :,
mad unWllllngly reported it, as Chairman of the |
Legislative committee; and it was not until many
days had passed. and after the other clauses on p
taxation had been agreed upon they stand in a
the constitution, that the present clause authori-
zlng the tax on income was proposed. 1t was not h
resisted. 1t was supposed to be SYNONYMOUS
with the clause on the same subject which had .
been previously stricken from the report, and it Il
was adopted by general consent and without ex- +
animation. If it had been adopted in the words Fl
of that clause, with which it supposed to be fl
SYNONYMOUS it would be clear that agricultural
yofI1p tin could no md ,fto |
land and abour which produced them. l
Before the clause was inserted, legalising tax "
on income, no mode OF taxing allowed by the "
constitution, except the ad valorem principle; Fl
and all property was subjected to its hard opera
ration, unless exempted by Constitutional MAORI
ties In each House of Assembly. The inconve-
nence of this arrangement was pointed out, and h
it was proposed to obviate it, by authorizing
other mode, when in the opinion of the Legsla- it
ture, circumstances should require; and with this =
view, the clause inserted to levy tax on in
comes, salaries and licenses 1t was a cumula- Il
tive clause, investing the Leg stature with aug
mented power-authorising the exercise of dis t
erection in the application of or two modes of f
taxation to any particular subject; but limiting this i
discretion, by combining the exercise of the pow VI
er to one mode and not permitting the applica- Ut
ton OF both to any subject
Accordingly it is expressly provided that if the al
Legislature elect to tax income it shall not tax the Fl
property from which such income is derived =,
And if tax be elvied on the income, the clause r
itself, by It's terms, RENTS the tax levied its
source and By parity of reason it is nerentialy st
provided, that if the Legislature elect to tax the
source or bject ad vaore, any tax levied on the
income, issuing springing from that or p
subject, stands RENTED by the spirit of the clause Il
But may not agricultural productions be T
garded and treated income, according to the f;
most rigid rules of pathological criticism In ~
come it is true, has neutrality-suspicious. to I"
revenue is not necessarily composed CO
of the precious metals, of credits which rep Pr
resent the precious metals On the contrary, we O,