The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-02-13
The Tax System.

Adam Smith, IN Inc WeGttH 0C NdttohS,
ernbodies In ige maxims, OF principles THE
qualities desirable, economically speaking,
in system of taxation. The first OF these
is that "the subjects Of every State ought
"to contribute to the support OF the gov
/" ernment as nearly as possible in proper
{. tion to their respective abilities; that is,
!" in proportion to the revenue which they
respectively enjoy under the protection Of
't the State" It is with the object OF secur-
ing this necessary equality Of taxation that
all-property in South Carolina is required,
by the State law, to be taxed at its market
value. The man who has no accumulated
property, real or personal. contributes moth
ing to. the expenses of the State govern
ment No pol-tax is allowed except lot
educational purposes, and OF that tax only
beggarly PARTS collected. The State gov
ernment is in the hands Of the voting major
ity; the voting majority are the laborlnS or
non property holding classes; they who
make the laws, regulate expenditures and
impose taxes, haze themselves no property
to tax. At this time therefore, although
the tax-system is correct in principle, an
undue weight falls upon the possessors OF
accumulated property. AS it is essential 70
the credit and financial integrity OF the State
that sufficient revenue be regularly raised
to meet the interest on the public debt, we
dare not hope, at present, for any consider
lie reduction in the gross sum to be raised
by taxation for purposes other than the now
enormous administrative expenses OF the gov
eroment. 1t is unquestionable, however, that
the holder OF real estate Is harder pressed
than the merchant whose net income is
much larger, in proportion to the tax-paying
capital, than that of the owner Of real estate.
To relieve both classes, it is now proposed
to put in operation scheme of direct taxa
ton which Shall reduce, in part, the tax
upon real and personal property,
A bill has been introduced in the Senate
authorizing an enrolme ut tax. This bill
imposes. special tax upon all acts OF pri-
vate nature, such as acts incorporating FOR
renewing, or extending, the charters of
banks, railroad, manufacturing, insurance,
improvement and navigation companies, and
their like. The bill also imposes tax upon
the formation Of new counties, and upon
acts in relation to private claims, churches,
library associations, gratuities and agricul-
tural societies. Tho amount Of the tax is
graduated according to the caNtal to be
employed, or to the amount claimed.
Until the bill has been considered by the
proper committee we do not propose to dis
cuss it 10 detniL There are, it seems to US,
some Objectionable features in the bill, and
more may be developed. 1t seems clear,
however, that the passage and due enforce
ment of such bill would yield large rev.
enue which would allow of reduction in
the present onerous tax upon real and per-
sonat property. They who ask for special
privilege can afford to pay for it. There
is no inequality in this. They know the
price Of the privilege they ask, aAd, If the
bill be passed, the enrolment tax will Us
naturally enter into the calculations OF o
new company as the prospective clerk hire
and gas bills. Unless there is money In the
scheme the act will not be asked for-h there
is money in the project let the State enjoy a
modicum OF benefit. A similar bill is, we
are informed, in operation in Pennsylvania,
where it works. admirably, and we see no
reason why we should not take advantage
Of the experience Of other States In this
abominable matter Of taxes. In politics,
Pennsylvania and New England have given
us some knowledge which we had rather be
without It will be some compensation If
their 'cuteness aid US to distribute taxation
aud make it more easy to be borne.