The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1860-03-19
&mhntdah qispattt.
The One Per Cent. r.x On sales.


MORNING. $. ~ ACH N, ~
The ONe Per Cent. Tax en Sales.
The bilowtns tActs may throw sorne lish
upon The policy and expediency Of the bill
which has passed the House Of Delegates, tax
ing merchants one per cent. upon the gros
amount Of their sales--a policy directly a
war with the spirit IL not the literal provi
sions OF the onstitution. The 4th article an,
I'D section Of that instrument declares that
Taxation shall 10 essai and xni5oym throug hou
tho Comm?nS esitt and AZ property, other tha
which .a. he ssesstsned ia such 10 M1 :. s.,e
he prescribed by law.
SIS provides that. The General Assembly ma
levy a tax on incomes. salaries and I,rensss. IN,
no:u,. 80 taxed is derived. Or on the capital in
the license 50 taxed 10 issued
The principle involved in these provision
OF the Consultation, as stamped upon theil
race, IS equality Of sasatios, whatever the form
winch may hc adopted. for laying and collect.
ing the tax. This is the principle which per.
vades all our INSTRUMENTATION the law all
men are equal, entitled to equal benefits
bound TO equal burthens. And ii never was
intended that property used in one legitimate
pursuit shall bear heavier burthens Than Is
borne by property used in another pursuit.
Then look At the facts
Is,. Under the bill which has been passed by
the House Of Delegates, land is taxed 10 cents
on the hundred dollars value; slaves over
twelve years of age are all valued at $500, and
they are taxed at 40 cents in the hundred dol.
lars on that valuation u manufac turer is
taxed 30 cents on the hundred dollars of his
capital money and credits are taxed 10 cents
on the hundred dollars
w I'd. Merchants are taxed one ne, cent upon
the gross amount oftheir sales, without any re-
gard 10 the amount of their capital or the pro-
nj they make upon their sales deducting from
the amount Of his sales the sales Of foreign
goods imported directly to Richmond, and of
goods purchased Of a person in Virginia H.
censed to sell
ID. The amount of capital in Richmond
employed in business for which a license ia
required is about 81 OOO,0OO. The assessed value
OF resi- estate In Richmond is upwards Of SIS
ooo,OoO; yet the tax paid last year to the State
ny the persons employing the Si.0Oo.OOU. was
upwards OF S., 900; aud the tax paid on the
Slsooo, COO OF real estate was $72,WU-the S4,-
WFh,oNO thus paying Sit, 600 more than the SIS
Wn,00, or five dollars for one
attn. The present tax bill is intended to in
crease the tax on merchant IS and the estimate
is, that il the amount of the sales in Richmond
is not reduced, under the present bill the own.
ers Of the 81, 0O0,OO0 will have to pay Sl5o.00O
whilst the real estate will continue to nav
s7s,0'o; or the 81 1000, 600 will pay two dollars
for one paid by the SIS, ooo-nine to one.
5th Under the tax bill Of the past year, the
highest tax paid by a merchant in this CITY
was about 1866. about four times as much on
his capital rs was paid upon an equal value of
real estate. Under the bill just passed by the
House Of Delegates, this merchant, if his sales
continue the same, will pay $4,000.
9th. In Baltimore, a merchant selling $780,
Ooo worth of goods pays about sl4U selling
$l,oOo,oOo, pays about $50; selling si,a50,ooO,
pays about SEQ. That is, where, on a business
OF 81 0O0, Richmond merchant will nav
$1,000, Baltimore merchant will pay $500.
'th One-third of the goods sold by some
Wholesale merchants in Richmond does not
clear one per cent. net, and this tax of one per
cent. upon sales will absorb entirely The whole
amount Of profit on this amount of their sales.
eth II it be true that The merchant can put |
Inc tax into the price then, rs there is nothing |
In Inc bill to prohibit persons, or corpora. |
lions. or manrfac tnrers, buying for their own |
use where they please. the effect of the tax |
will be to induce all corporations, and per.
sons requiring large supplies for their own
consumption. to purchase these supplies out
OF the State. 1t will drive all the people on
the borders OF the State to buy on the other
side OF the line. The Northwest and the lower
Valley OF Virginia will buy in Baltimore;
Loudoun, and Fairfax, and Alexandria, will
buy in Washington; the West will buy in
Cincinnati, and the South and Southwest will
make their purchases in North Carolina and
Tam n %I,,
sales OF the Virginia merchants, it will drive
away all purchasers for their own use who
can make it convenient to 20 or send to anv
place out OF the State for their supplies. And,
AS the advocates OF this bill are the peculiar
guardians OF the poor, we may suggest to
them that, thus whilst the rich will escape
The tax by buying out of the State, the poor
will be compelled to pay it, because they have
not the means to 60 or send abroad to make
heir purchases.
9th. AS measure to build up a direct
rade, or the independence of the South, it is
IT no avail. The articles brought from the
North are made there; and you cannot get
hem, Or a substitute for them, from Europe.
The only remedy is to manufac ture them here.
md until that Is done, they must be brought
rom the North, whatever may be the tax that
I
ever of these goods brought from the North
hey must use fewer OF them. If they will
ender the demand less, the supply will be
ess. But THIS requires no tax on sales to car
v it out. :
ION. II this tax shall induce our wholesale
merchants, as We believe it will, to give Nm
ne sale OF the low-priced woollens and cor.
ons and many kinds Of other goods. which 4
re only 10 be gotten from the North it must 9
reak up the business of the small retail r
callers in our cities, who are only able to v
leef the expenses of their business and their I
mllles, by the means they now have of re-. u
their stock, from week to week. or a
ay TO day. as they make their sales, il
But the most miscalevous feature in this s.
'heme, and in all others taxing sales, is the
tier destruction Of all confidence and all SCI
Arity LOT investments in commerce. No sane II
ah Will place his property where it may D
ave an indefinite load to bear, varying from
'ar 10 year. Confidence is at the root Of all
ade The very announcement Of this one n
II cent. tax will do more to destroy this con. fl
lencc, to cause property 10 be withdrawn h
ON commerce, and to break up schemes al. d.
ady entered into for pushing forward new a,
terprises, than all the discriDinat ions of tho NJ
ost inventive genius can heal for years to il
me. IL one per cent. is legal, who shall d:
arantee that Two per cent. or any other rate 6,
~ not one day come suddenly down upon
. mercantile classes Where is the limit to
. The end Of this uncertain, changing. rev. q
policy, is to be the disappearance IN
what little active capital is left in Virginia CO
the spread OF her commerce.