Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-05-16
TAXATION.


coun, Of tbe importance Of the subject, and be-
cause We deem il desirable 70 invite discussion on
this theme By IAN advalorem tar upon real
estate we understand the writer to mean, not
exactly what the words imply, but rather direct
tar upon tie assessed value of real and personal
property such a. Is annually collected for state
and municipal purposes. We do not believe that
I. is pras,icAble TO establish free trade while the
nation Is 80 largely in debt bor ~ IL probably de-
siFable to effect 50 radical a change 10 that par.
Of our machinery for filing the treasury. But
the Tax on incomes. professions aud modes Of
business, We believe might we'll be abolished to
the comfort aud satisfaction Of the people:
NEw YoRK. April p.
To the Editor OF The Journal Of Commerce:
STR-I wish TO ask your ASSISTANCE in LAYING
before the people OF this and the other large cities
Of this country. especially before the very class
Of men who are the readers Of your paper and
| Who are those most thoroughly capable by the
nature Of their pursuits Of understanding the
question, the argument in favor Of depending for
| the entire revenue OF the national government
| upon an ad salorem tar upon real estate.
There are certain advantages in this form OF
taxation over any other. which only need state
ment to be acknowledged.
Ii IS more economically collected tax up
on imports. upon any merchandise, upon sales,
| upon documents in the shape of stamps) all
require larger force Of assessors, appraisers,
sub agents, collectors, &c, &c. than this, which
can easily be levied and collected by the already
regulated machinery OF states and territories, re
| curing but slight increase Of expense on the
part OF the local governments, which increase
can be reimbursed by a percentage of the tax
| collected for the national government.
IL is less repulsive TO the feelings Of the peO-
pie. the present system or systems requiring
| man constantly TO acknowledge the existence of
taxation. although many times in a very small
way, while tax upon real estate would be met
| with only once in a-year, and then be done with
The tax upon real estate is almost the only
| one. or in fact the only one. which / now think
of which is not direct premium offered TO fraud.
Income tax. tariff. stamp duties, tax upon sales
all say to men generally, "1f you can avoid me it
ia so much money in your pocket"
These are a few very simple considerations,
but much more important those bearing upon
the effect Of the tax upon the general welfare of
the country. and upon the equitable division of
the tax among all. Adam Smith and Stuar;
Mill both treat OF the final disposition Of any
tax that is, they endesvor to ascertain who final
ly pays it. but cannot see but what all taxes
upon merchandise, direct or indirect. finally act
upon the consumption and that therefore the con-
sumers pay them. Let US see then what is the
effect OF tax upon real estate First. all real
estate used a place Of residence merely, must
pay It's tax well "a the rest and this tax is, so
far as the occapier, whether owner or tenant, is
concerned, an additional rent. Those who can
not afford to pay this additional rent will natu
rally seek for real estate upon which they will
, not be called upon to pay so heavy outlay,
and as thus process is repeated to the last, the de
, mand will finally absorb those parts of city OF
its surroundings which are the cheapest, or rath-
er, viii have a tendency TO so absorb them. In
, the meantime, however there is a counterbal-
aDcing influence at work.
The articles of consumption upon which a man
lives and for which his daily expenses are incur
red, will all, BY reason of the removal Of taxes
upon importation, manufacture and sales, have
fallen more or less in cost, and at the same time
; his income tax will have been taken off, and he
can add TO his rent the amount gained by the
duction of these expenses without spending more
in the aggregate than befote. Second, in the
case OF property used for productive purposes
either as farms, mines or places of manufacture,
while the above process would go on to some ex-
tent, there would also occur the following: II
by any chance the aggregate expenses of the oc-
cupier proved to be increased by the change in
taxation, this increase would be charged to the
articles produced and the consumers of our
,
TO pay our taxes But it seems to me certain
that if wo gained in no other way, We should
gain the difference in the of collecting the
tax by this system, in preference to the present
and that. therefore, the aggregate cost of living
could not be increased to the farmer or other
producer.
One thing is noticeable The increased cost
, of holding real estate would tend to induce the
holder 10 avail of its productive powers to the
trfrp fha .hs Of
manufactures and the freedom from the clogs
upon general business transactions which the
, present revenue laws impose would increase the
activity of the inhabitants of the land TO the ut
most Government would have every reason to
aid in the increase of facilities of communication
to the development OF the natural resources of
the soil. and to take any steps which might lead
| to the appreciation of the taxable value of the
country. 1t is easy to see that instead of the
present unnatural development of certain
branches of manufacture by the operation of the
tariff, all production would be quickened and the
free natural working of the great laws of trade
would point out to US what branches we could
carry on to advantage.
The effect of heavy tax upon real estate
would be to induce the holders of large farms
10 part with such portions as they could not with
their capital make profitable, and thus would be
i wrought out the sub division of holdings, the &C
emulation of which in the hands of a compare
lively few individuals has had such a terrible
effect upon the morals of the peasantry and low
er classes generally, in countries where it has
prevailed.
/ Ihave thus hastily thrown together few ideas
and beg that you will give the subject your
| thought, and such appeals as may seem to you
desirable in so important matter to the interests
of the country. / have not the power of Ian
gusge sufficient to set the matter forth In proper
form, and therefore do not ask you to publish
anything from my pen, but sincerely trust that
you NAV feel sufficient interest in the subject to
present it as il should be.
/ Preferring to remain unknown in the matter
myself,
Your obedient servant,
ARTHUR CANoLL.
Convicts of Military Commissions