Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-12-09
THE MERCHANTS TAX.
The other Side OF the QuestiOn-A
General Review of the Revenue

TRENTON, TENN, Dec. B, 1SI.-ln a
late number Of the UNION AND AMERICAN
| see a very lengthy petition to reduce the
tax upon merchants, as if they were tie
only persons who ucere oppressed by high
taxes, etc. And it is even stated in the
petition that they pay a much heavier tax
than any other class of the community.
Now, this is not so and l venture the asser-
ton that large majority Of the petitioners,
did not know when they signed their names,
what the merchants tax is, how the present
merchants tax bill became a law, nor what
the tax is upon other privileges. Having
had some acquaintance with the revenue
laws of the State for the past five or six
years, and knowing the sources from which
revenue is derived, am enabled to contra
dict the assertion made in this petition and
will show that there are several classes of
our community who pay heavier tax upon
their capital than the merchant does. Bear
in mind that the merchant pays the same dd
rGlOren tax upon his capital that the FARM
er does upon his land, and privilege or
license tax of the same amount,
but in no case to be less than five
dollars. The rate of taxation the
present year has been six mills on the dol
lar, so that the merchant with a capital of
81 900 only pays a tax of Sl2,and on $1,000,
a tax of $50. The photographer on each gal
lery opened by him pays a tax Of $l05 in
cities and towns Of over 5000 inhabitants,
and in towns of less size a tax of $50.
Now every one knows that his whole stock
will not exceed 81 ,000, ,oftener less. If there
is any class that needs relief it is surely the
photographer, the tax upon whom amounts
almost to prohibition. The next class is
that Of the note shaver, who employs his
capital in buying notes, etc. The privilege
tax of note shaver is SIS, and three per
cent. upon the amount Of capital employed.
The note shaver upon his capital OF 5000
pays tax of $165, and on 81 600 tax of
$45. The tippler pays the same ad valorem
tax that the merchant does, but privilege
tax of Sl05 in cities and towns of over 5000
inhabitants and $40 in towns of less size.
on his capital or stock of $1,000, he pays
from S76 to Sill. Indeed defy the mer-
chants to name any trade, profession or oc-
cupation that does not pay as high taxes as
they do, where thers is any privilege tax as
sessed at all. Even the butcher pays heav-
ier tax. But one of the heaviest taxes i'm
posed by law is that upon livery stables.
Take one for instance of twenty stalls and
ten buggies, hacks, etc, run for pay. His
whole capital, estimating his vehicles and
horses only, is not exceeding 5000, yet he
pays tax of seventy-five cents on each
stall, and SIS on each buggy, amounting to
S165.
Now, MeSsrs. Editors, If the Legislature
is to be influenced by these dubiose memo
rails in behalf Of the least oppressed of the
community, hope they will take general
review Of the whole revenue laws, and cut
it down where it is most needed and where
there is less ability to pay. That the taxes
are high and oppressive cannot be denied;
but that the merchants are the only suffer |
ers is absurd and false. A reduction of the
tax upon property from so to 40 cents on
the 500, reduces the merchants tax also,
but it does not affect any of the classes | |
have named, except tipplers, and them very
slightly. What more do the merchants |
want? There is no class who is better able |
TO bear his proportionable share Of the bur
then that oppresses us than the merchant, |
for there are none who control more money. |
He pockets the larger share Of the earnings |
Of the farmer and mechanic, the laborer + |
and the artizan, and can very well afford to |
return portion of it for public taxes and |
public enterprises. Through the industry |
Of the farmer and the laboring classes, cap |
tal is caused to flow into the State, but |
through the merchants thrift it is again alb |
sorbed and carried back to be exchanged |
for goods, and the prosperity of the |
State depends upon the equilibrium that |
IS maintained between them. Thus while |
.he State is being enriched by the |
labor of the farmer and manufacturer, it is !
again impoverished by the merchant in pro |
portion to the amount of goods imported.
But there is one fact in regard to the |
present Merchants Tax law, of which we |
now hear so much complaint, that should
not be forgotten. 1t is an invention of the |
merchants themselves. During the last
Legislature, and while the Constitutional |
was in session, there was a |
similar pressure brought to bear upon the
to repeal the former and enact the
present law. 1t was engrafted upon the
and the very law they petit
Toned for was enacted. If the taxes are
high and fall heavy upon other portions Of
.he community, they must expect to feel it |
also. While the State is upon the verge of !
with a heavy indebtedness
hanging over it, every class of the commu-
nifty must shoulder part Of the response
bility.
The last Legislature committed an eyre
gious blunder at its first session in reducing |
.he tax to twenty cents, but they fastened |
10 repair the error at the next session, by |
raising it to higher rate than at any time |
previous. The present Legislature should |
be cautious in initiating its example, in en- |
acting injudicious laws, to be repealed in |
twelve months. Of this class l must char |
acterize one feature of the new revenue |
bill of the present Legislature, which i'm |
poses tax upon the debtor portion of the |
who, of all classes, are the least |
able to bear the burthen. Better, infinitely |
better, would it have been to have imposed |
a tax upon cotton buyers and other classes |
who are now exempt, than to have sought |
out the most unfortunate and improvident |
portion of the people as an object of their |
As a general thing, the taxes |
upon privileges are too high, and operate to |
some extent as prohibition, but with the |
unfortunate debtor it will be otherwise-it |
will not prevent him from mourning debt, |
but will add to his liabilities. The reve-
nue. to be derived from. such source will be !
and the State will have many bad |
debts to look after; unless the plaintiff in
every case is made responsible for the State
tax before commencing suit.
The time is so near at hand for the Legis-
lature to terminate its seventy-five days
session as prescribed by the constitution,
that it is to be hoped but very little tinker
ing will be done to the revenue laws, but
that they viii perfect some system of assess
ment, by which the valuation of property
will be more uniform. At present a few
counties in the State, are paying the princi-
pal part of the taxes. In some counties
property is rated nearly to its value, while
in others it is not at half value. But more
anon Il necessary. KENO.