Los Angeles daily herald., 1875-02-17

W WtdlJii anu SIedblcSo.
No country in the world equals ours
in fertility of soil, extent of territory
and in the indomitable. enterprise of
our citizens. In these three grand ele-
ments we find the measure of wealth
and prosperity we enjoy. No other
people on the face of the earth could
stand the same strain on their re-
sources. The question is, how long
can we endure it? Over four hundred
millions of money are annually paid
by the people to carry on the Federal
Government; two hundred millions
more for State and local governments,
to which we may add two hundred
millions more for cost of collecting and
disbursing and for stealage, and we
have grand total of eight hundred
millions of dollars annually paid by
the American people in the shape of
taxes! We have less than six hundred
millions of money, of all kinds, in cir
culation-two hundred millions less
than it costs us to run our general and
local governments!
Any reform which promies partial
relief should be eagerly considered and,
if practicable, adopted.
1T WOULD BE A BOLD INNOVATION
On "time-honered custom to strike
out at one fell swoop not only land but
personal property, monies and credits
as subjects of taxation! And yet l
think there are many weighty reasons
for abolishing our whole revenue sys-
tenn and establishing one based on the
only true theory OF taxation that
of tribute on consumption. Produc-
ton should be totally absolved from
all public burdens, because it consti-
tutes the wealth of the State, and
should be encouraged rather than dis
couraged by the imposition of onerous
exactions. 1t feeds and clothes us; it
furnishes all the material of commerce
and trade. Without it, railroads would
be without anything to carry; the
would sail with empty bottoms. In
short, without production, we would
be nomads and civilization only a
dream.
Production implies much; for there
can be no production without labor.
Therefore | say, free labor from the
fetters that bind it's limbs and clog its
progress in the race for wealth, power
and position!
Under the present method, produce
ton or labor bears, directly or indi-
rectly, all or substantially all the pub
lie burdens. A new system is proposed
which does not lay it's hand on the
wealth of the State. 1t does not touch
with its iron grasp the soil nor the
productions of the soil. 1t does not
put its fingers at the throat of labor and
demand still greater tension of its
sinews and muscles. On the contrary
it leaves labor free to follow its own
ambition aud work out its own destiny.
1t seeks tribute only of consumption.
1t imposes taxation on that which is
consumed and not. produced by the
consumer.
You see the change would be radical,
and it instantly inspires opposition
from the fact that large landed pro-
prietors, wealthy bankers and brokers,
railroads and bondholders would be
left with nothing to pay on their enor-
nous wealth. Let us see about that.
ALL MUST ADMIT
lhao lhA oh CohSuuip peioi-oh VIC dc-
struction of wealth (for consumption
is only destruction of wealth h)-would
be the most equitable way of raising
revenue, provided always it could be
SO adjusted as to compel each one to
pay tax in proportion to his real wealth
in lands, monies and credits We must
hn al ~ HrI I
have already said, and think truly,
that capital pays but a moiety of its
just proportion of State aud local
taxes. The merchant and the manu-
facturer adds his taxes to the cost Of
his wares, and his customers pay them.
The banker adds it to the value of his
money and adds it TO the interest. The
large landed proprietor pays taxes on
his lands-generall less than he ought
to pay-but what he pays he adds to
the cost of his lands, and when he sells
to the farmer for cultivation he makes
him pay them.
Will tax only on consumption
remedy the evil aud equalize the public
burden?
/ think it will come nearer il than
by any other yet suggested. What
then will the producer pay? Suppose
/ am now assessed at $4,000, including
my farm, improvements and personal
effects, including productions. On that
pay $120 tax. My purchases for the
year amount to $1,000. On the agri-
cultural implements, goods and gro
ceries | buy, the manufactures and
merchant add about three per cent. for
taxes, and on the $1,000 | pay about
$50 tax; total, $3.50.
UNDER THE NEW METHOD
How much would be required to pay?
1t is proposed to tax only consump-
ton, and to bring the tax as closely as
practicable to the consumer the tax
should be levied on the retail dealer,
who shall be charged say one per cent.
on what he actually sells. Then how
would I stand? AS | have already
figured, | now pay annually $3.50 tax
on my property and purchases. Under
the proposed plan | would pay as fol-
lows: On farm, personal property,
productions, ETC., nothing. ! raise my
meat, vegetables, hay and grain for
my stock, and therefore | pay no tax
on them. | buy of merchandise, in
cluding agricultural implements, ST.
600 worth. The retail dealer is taxed
one per cent. on his sales and he adds
that to the price of his goods. pay
then $1O and that is all / pay as taxes
against $3.50 under the present system.
A pretty good showing to be placed to
the credit of muscle!
Now how would the rich man fare?
He pays no taxes on his lands, mon
les or credits. But for every foot of lum-
ber he puts into his costly residence,
he pays one per cent. For every
thousand dollars worth of fine furni-
ture he buys, he pays one per cent.
For every champagne cork he draws,