The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1860-03-17
The Merchants, Tax

We publish this morning the memorial Of
the merchants to the Legislature, on the sub
ject Of the one per cent. tax proposed to be
levied Oh the sales Of merchants. 1t was pre-
pared by Mr.. PRAcHY r. 0RATrAN. 1t pre-
sents some very strong points for reflection 20
our law-giver,. One, especially, which snoaid
fix their attention, is the Withdrawn Oh soine
&5O0O,OOO Of capital from this city since ie'''
under the unfxvorable revenue system wn'cn
imposes 10 odious tax on State bonos, ana
such heavy impositions upon captaA. AUG
memorial estimates that these inJudicaous
financial measures have driven away, 1or IN
vestmsnt ont Of the State, at least Sl0,WW,0O0.
A statesman would conclude that as soon as
tar had the effect to drive away the object
taxed. that It had exceeded the just point, and
ought to be reduced until that effect ceased.
The grand point to be gained with him is,
that which yields the highest revenue with
the least oppression. That moment 1t tells
unfavorabiy by the diminution Of energy, or
industry, or enterprise, or by the curtaiiment
of capital, it has gone TO an excess, and ought
TO be diminished. The tax on capital which
can be translated readily to any poin. where
1t is the interest Of its owner it should be, re-
veals the evil effect of this excess more readily
than any other description Of tax. Individ-
ual enterprises may BE- depressed, and their
growth and extension may be circumscribed:
but it is not SO easy to wind them up and for
those who conduct them to pull up stakes and
depart for more genial ATTITUDES. Yet the tax
on capital in Virginia is Of a piece with the
general revenue system with reference to COM
merce, save the policy for the encouragement
| of direct importation and domestic manufac-
lures The whole class tax imposed upon the
merchants is burthensome and injurious, IN
| asmuch as it cripples them in their Compel
| ton with those Of larger cities-a COMPETE
| ton made greatly more efficient under the IA
| cilities of steam and railroad communication,
| with the auxiliaries of expresses and tele-
| graphs, which ramify the whole country at
| this day. The most flourshing and expert
enced commercial communities in this coun-
| try adopt the system of taxing real redh.
| Here our law makers substitute talent and
enterprise. In New York the tax for the
privilege Of doing business is nothing, and the
business man pays per cent. upon his actual
| capital. Here his tax rises as his business Is
increased and his energy, activity and expe-
rience, guaged by the amount of his sales, are
| levied upon in proportion to their success.
| Thus, IL man with an actual capital of $4,000,
who may, by his superior energy, sell twice as
|
pays twice as much into the State Treasury
as he who has the larger capital. How much
wiser is that sys stem illustrated in the parable
of the talents!
more unwise mode of levying the impo-
sitions for the support Of government upon
commerce could hardly be devised; yet it
| seems to us that the one per cent. tax on sales
is to be an exaggeraton Of its evils 1t is
commended by some on the ground that il
ca ualizes taxation on the merchants, making
all pay alike, retailers and Wholesalers
And is this in truth the golden rule ,
| Is it true that taxation may be multiplied "a
infnitum, in proportion to aggregate amounts
sold, and with justice Are the profits mul
tiplied in the same way! Certainly not. The
| profits are diminished as the amount of sale:
increases. The retailer could not live upon thu
| profits which the wholesaler regards am
pie; and tax levied upon the idea that boti
are equally able to bear taxation in proper
ton to their Sales is erroneous and unjust, and
| must be injurious to commercial enterprise
The graduation of taxation on this Injus
principle makes the tar most Of the retaiieT.
less than IL has been nnder The present lasc, and il
, this view the one per cent. tax will he less :
retaliatory measure than the present law
| With diminished tax and the knowledge tina
he must pay the one per cent. if he buys his
| goods in this city, there controlling
| reasons which would induce him to buy il
any Virginia city. 1t is, therefore, at leas
, | doubtful whether the wholesaler in Eirgini;
, | will have an increase of retail customers from
| the interior; indeed we think the reasons ar,
| strong to apprehcnd that he will not but tina
. | he will lose some that he has had heretofore
The mode in which the wholesaler is TO re
| imburse himself is not free from difficulty
| 1t is not so easy for him in conducting tn
| close and vigorous competition he must main
tain with the Northern merchant to atiacl
the tax to the price of his goods and his reason
able profit How to ditluse it through the bill
will be Il perplexing question and if he is un
| able to do it, and attaches it in separate item
| at the ottom Of the bill, what will his Gus tom
| er say Will he submit to it as an extr
, charge!
The old tax was bad the new il worse an,
. the more we think of it, the less We hope from
, it in the way of building up domestic manu-
features and direct trade. 1t may be wei
feared that it will deprcss the commercial
power of the State that it will not be abb
, fully to avail itself of the inducements hel,
. out to direct foreign trade and man facturip
+ by its exemptions. And in addition to the in
huence of the new tax itself, the unfavorabl
measures with regard to capital keep it ava,
E and deprive us of its aid.
g Weconsider these matters especially worth
the reflection of our law-givers They ar
| but imperfectly represented here but tn
ideas are thrown out and can be elaborated b
E any rejecting mind. That we have proyoca
ton for any practical measures of retaliation
4 | for the injuries inflicted upon us by tn
| Northern people, We all know. But we shout
be sure that these measures are practical, an
| will not inflict more injury upon ourselve