Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1867-10-25
-
Taxation Of Upited States
Stacks. z

There ia SOMEBODY. said Burke, more
mile. more wise and mere compesent than
any member of the whole farlianlent; IT
i. the Parliament itself. kssd sounloabt-
s.dv there is somhody mare capable and
wiser than any American citizen; and
that is the American People. The tho
rough discussion which has within a lew
weeks eifted the Whole subject OF taxing
national securities lea9cs but little more
TO he said. The inaptitndes and inaccur-
ucics have gradually dropped out OF sight,
and the substantial facts. illuminating by
so many convcrging rays Of intelligence,
stand out with clearness and certainty
with which no single inquirer could have
clothed them The. mann facts as they
now appear. are these;
I. United States stocts arc EXEMPT
FROM Ssase or muaicipat tardtion. not by
act of Congress, but by series OF Judicial
decisions under the national constitution,
since 1910. ....t 1.... z....
2. The holders of United States secu-
rites are now paying thereon their full
share of national ttaatioa-namely, five
per cent, OF their entre incpne over and
above uo lerate provision for their fam
lilies. .--.
iitt bSsltHC'ttiV tittN p'pP"HS ="
remedy fhe inequality of local taxation by
increasing the national taxes upon the
bon Is.
These three propositions will not now
be disputed, and tits only necessary to com
pare them in order to discover how totally
Inadequate is the only remedy proposed by
the Democratic party. The complaint Is
that the burden OF local taxation is unequal;
~. n RI
governments are assessed upon only apor-
ton of the property held within our city
aud State limits. meet this difficulty
our advisers in the Democratic party tell
us Congress must levy an additional tax
upon the bonds, and collect 1t when the
cAupons are presented. But this addition
nj tax, il levied, will find Its way. not in
to our city and State treasures, but INTO
The national treasury at Washington. How
much would tina. operation tighten the
burden of our local taxation Would 1t
reduce the expenses OF our State and mu-
nicipal governments Not at all Would
it reverse the DECISIONS Of the courts, and
enable ms to tax the bonds here where it
ia said we need to tax them! BY no means.
The States and cities will remain as poor
as before. and the national government
not ask for and has no right to expect.
SO much for the Democratic plan. which
NAV now be dismissed The Republican
marty has to deal with this question under
aseise of the responsibility which belongs
to party in power. and VIII 1t Is to De
hoped present some more satisfactory SO
lntiun of the problem than that we have
ius, been considering. When Congress
4 ..1s,rf first txh hail I he
exemption of two billions from local taxa
riou is so great an evil as it has been rep
resented. When eur national debt only
Amounted to few millions lin 1855 it WAS
only few thousands), 1t was oil course
small matter compared with the total valid
ation of the Country. 1t amounts now to
probably less than ten per cent, but at any
rate to a not inconsiderable fraction. IT
Congress should decide that this fraction
ought not to be deducted fro:n the resourc
es of the States, how shall the renedy be
applied! PLAINLY by issuing new bonds
subject to tocat taxation and paying OH the
present bonds, as they fall due, with tile
proceeds. In this way only en- the case
be fairly met. In this way only can the
taxes he distributed with perfect equality
The provision of the consultation under
which the courts nave Hsiu tudI tuc ooHUs
are necessarily exempt from local taxa
ton, is the clause comforting upon Con-
gress power to raise money. 1t has been
ir.ld that an unlimited power ct local tax
alton might interfere with the exercise OF
rAis necessary function OF the general gov-
eminent. On such terms any State might
tax the national bonds ont OF the market.
But il Congress. defining the limits OF 10
cal taxation, should authorize the issue ef
bonds subject to taxation 50 limited, 1t
seems cleur that the constitutional diiticul-
~ would be avoided. The bonds now
ahoat were issued with the express under
standing that they should not be snhject
tn State or municipal taxation. Congress
is not competent aud we trust has DO de-
.ire to repudiate outstanding contracts.-
II it is necessary now to provide for bet
ter distribution of the burden OF taxation'
it mast DO done by recalling aud paying
off our present obligations and issuing
new bonds on new and clearly understood
conditions.-[ Portland Press,