The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1868-08-10

DEMOCRATIC PLAN TO SHIFT THE BURDEN
OF TAXATION FROM CAPITAL TO LABOR
The following article will bear careful exam
ination and study 1T is an extract from a
communication that appeared recently in the
Boston Advertiser. 1t will be worth the while
of our readers to famliarize their minds with
the arguments presented:
If the bonds Of the United States should be
made subject to local taxation, the effect
would be to transfer from property or capital
to labor an amount of taxation very nearly
equal to the sum which would thus be assessed
by towns, cities and States upon such bonds
In other words capital as whole and capt.
alists as a class would be relieved, and labor as
a whole and laborers as class would be bur
thened. Nv
The inhabitants of any city or town may be
divided into two, classes: those who possess
property and are subject to a tax assessed
directly upon their property, and those who
pay no property tax but are assessed only a
poll tax. The later class is by far the most nu-
merous. 10
81 1t matters not to the latter class whether one
section OF the property owners or another pay
the local taxes so long as they are paid: Meth
er does it matter to them that United States
bonds are exempt so long as other property
shall pay ali local 'taxesI fHlE -3RN
But if United States bonds are made subject
10 local taxation the government must nav a
higher rate of Interest than it would have to
pay on bonds free of tax, since capital can
command certain rate OF interest or profit1er
its use over and above all charges, of which
charges the local tax would become satN"s
| Let us suppose that the government could
borrow at 5 per cent. interest on bonds ex-
empt from taxation and at 6 per cent. on
bonds subject to local taxation, although this
difference in the rate would represent less
than the real difference, since local taxes aver
age more than one per cent. tl -2af--1 r.
II But at only this difference the additional
amount to be raised by the United States gov
ernmept to pay interest on our funded debt
would be over $21 900 900 per annum, and this
sum would be paid by labOrers rather than by
capitalists for this reason, that nearly all the
revenue of the United States is derived from
indirect taxes levied upon the necessaries, COM
forts or Injuries consumed by the people, and
not from direct taxes upon property. - @y..l e.
The revenue of the United States is derived,
first, from duties upon foreign commodities,
and these duties form part of the cost of such
commodities to the consumer; second from
excise taxes on liquor and tobacco forming
part. of the cost of the same; third, from IL
cense taxes on Sales stamp taxes, &C., Sc, all
of which enter into the cost of producing or
distributings commodities. q faos go. \ .'
III All these taxes are, in the long run, paid by
consumers in the proportion of their consump-
ton. Each capitalist doubtless pays rather
more than each laborer, but OF the aggregate
the labor ers pay by far the largest portion as
they are by far the most numerous.
"a We do not here propose to discuss what
would be an equitable division of taxation as
between labor and capital; that is not now the
question at issue. ~ 81 ~ .-isla1H n1i39ss..
The simple fact is that local or municipal
taxes are now paid mainly by property or cap
ital (bonds being as property exempt,) and that
if bonds are made subject to local taxes labor
will assume substantially the whole burthen OF
the extra rate of interest thereby rendered
necessary. ~. ..,.. 81 f.. nt.ils fr.s a.is -rs
90 The majority being laborers and not capital
lists should take heed that they are not deceiv-
ed to their own injury by the specous argu-
ments of demagegues who mislead them by
arousing their ,prejudices and insult them by
the superstition that they are not competent to
detect jsophistry. .SSEit. e&t SIS stsil, s4.E3
The working men and women of the coun-
try are therefore the ones who are being cheat
ed by the fraudulent propositions to pay bonds
in greenbacks and to tax existing bonds. Our
Credits bad because of these proposals How
bad it is may be indicated by the fact that the
little kingdom of Sweden lately paced loan
in London at per cent. interest at the rate of
49, Bids were asked at or over co. and twen-
ty times the amount called for (G1, 25O, OOO) was
offered. Nss s%1s s.S" -
Our credit is so bad that our per cent
bonds sell in London at less than 80 and will
continue to do so until our people learn that
ialled paper" or greenb ticks are not good