The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-07-01
A New form of Taxation.

A New form of Taxation.
THERE are two kinds of taxes recognized by
the Constitution of the United States. One is
'indirect." Under this head may be classed
all forms of taxation which do not fall at an
even rate per capita on each individual; or,
it may be more proper to define ''direot" taxa
ton as that kind which is assessed so much
on each individual, without regard to pro-
perty, while "indrect" includes every other
kind. The latitude given to Congress to legis-
late in favor Of raising revenue, vests an ab5o-
Lutte power in the House OF Representatives to
originate every form OF taxation which comes
under the head of 'Indirect." But while the
vent is left open the imposition of direct
taxes are carefully guarded The provision
for laying them is distinct and unequivocal.
The first article and second section
says:-"Representative ard direct tdreS shall
be appertioned among the severd States which
may be included within tho Union according
to their reSpectiUe numbers, which shall be de-
termined by adding to the whole number of
free persons, including those bound to service
for term of years, and excluding Indians not
taxed three-ffths of all other persons" II
will thus be seen that instead of the present
form of taxation the Government has at its
disposal an entirely different bill, which will
entirely change the mode of collections and
the sources from which it will be derived. At
present we support an immense number of
offcers-there are nearly two hundred and
fifty assessors, nearly two thousand assistant
assessors, and a like number of collectors and
deputy collectors, so that large proportion of
the real revenue never reaches the Golfers ofthe
State, but is eaten up by salaries. This is
supposing that nothing is extracted from the
amount collected except what is legally due.
But the enormous amounts dishonesty kept
In the hands of the sub-oficial render the pro-
portion lost to the Government yet more
alarming. These facts have directed the at
tention of Congress to the other alternative,
and yesterday, on motion OF Mr.. Getz, of Penn
sylvania, the Committee OF Ways and Means
was instructed to inquire into ths expediency
of reducing the expenses OF collecting the in
ternal revenue, by abolisbing the offices OF
collectors, assessors, ETC., AMI assessing the
amount of direct taxes required upon the
several States, in proportion to their taxable
population, and to report at the next session.
The resolution passed without opposition,
and the Committee will, probably at the next
assembling of the House in December, be pre-
pared to make a report.
Such a vital change as the adoption of the
proposed system would invite of course de-
mands the most mature deliberation. That it
has advantages so far as the necessity of col.
lection is concerned cannot be denied; but
whether the disadvantages of the appointment
would not more than overcome tina cheapness
OF the collection, is matter for grave con-
sideration. If such plan as that suggested
was to be agreed upon, we would have no
more United States officers whose duty il
would be to attend to the collection. Congress
would free its hands of the details. 1t would
merely apportion to each State the
amount which it must raise, and
the collection would be made by the State.
Thus about $3.50, 600 600 is required for inte-
rest on the debt and like matters. There are
only thirty-three millions of people, of which
say Pennsylvania has two millions. The
United States would say to Pennsylvania, eve
want nine millions of dollars as your share
towards the interest,"" and the State would
raise it from the inhabitants. We do not
quote actual figures but merely as an in-
stance. Heretofore this mode of taxation has
been seldom resorted to. On but three occa
sions has this been tried. In 1898, in 1913,
and 1915. Then it did not give satisfaction,
But now it will probably be carefully scanned
Tho rare occasions on which il has been tried
has caused the public to overlook its exist
ence. The resolution of Mr. Getz will attract
general attention to it, and will cause many
new ideas to be propounded on the subject o
Iha collection Of taxes.