Los Angeles daily herald., 1875-02-17

sumo. This system also reaches an
other class who now 90 scott free
those who have no lands and neither
toll nor spin, but who are always
found with fine clothes, snowy jew
elry, soft hands and faultless style.
For every cocktail, for every Havana,
they must contribute their mite to
the State. For every garment and
for every luxury they enjoy they
must pay tribute to the sovereign.
THE NEW PLAN
Would also impose a license system
by which every corporation formed OIL
to be formed should pay.a fixed sum
for the privilege of existence-a sort
of accouchment fee-and afterwards a
fixed rate on the amount of business
done, exempting only corporations
formed for manufacturing purposes.
A similar provision should also apply
to banks, hotels, eating and boarding
houses, tobacconists and saloons;
lawyers, doctors, surveyors and engi-
neers, land agents and sharks gener-
ally.
The principle here advocated is not
entirely new. The Theory is applied
by the Federal Governmentin in the inn
position of duties in foreign impor-
tations. It is simply and purely a
tax on consumption. While discrim-
nations are. properly made in favor of
those articles which most larely enter
into general consumption, and the
larger duties imposed on fine goods
and luxuries, the principle is radical.
The importer always adds to the cost
of his goods the duties he pays, and
the consumer ultimately pays them.
BY this system the Federal Govern
ment annually collects four hundred
millions of dollars and who pays? The
bulk of it is paid by the rich who sport
fine garments of foreign manufacture,
and buy for the qualification of their
tastes, the products of the artists of
the Old World.
Can there be any sound reason why
a similar system should be adopted by
the States.
I have based my calculations on
tax of one per cent Our State and
local tax is now something over two
per cent. Can sufficient amount of
revenue be raised OH that basis? |
think it can. / am more familiar
with the business of the Grange store
than with any other and will there
fore take it as basis of calculation.
The business of that concern for the
first year will exceed 100000. A tax
OF one per cent. on that business
would be $1,000. In the city of Los
Angeles, | judge, there are at least
txxro nh a. ~ Il
of that amount each. You would re-
aize from that source $25, ,000 Twen-
ty-iive that do an average of $4,000
each; tax, So, 800, and fifty more that
do an average of $4,000; tax, $1,000.
Total, $42,500 Then the tax on the
three banks would be about $25, 200,
based on business of 50, 100000 Add
to this hotels, whisky and eating sa-
looms, tobacconists lawyers and other
professions and occupations, and you
would surely increase the total tax in
the city alone to more than 100000
annually.
FROM THESE FIGURES
| think | may safely say that ut one
per cent. we could raise all the reve-
nues needed for State and local pur-
poses. It must also be borne in
mind that the machinery we have so
long been accustomed to, would give
place to much less complex and ex-
pensive one, and a large percentage
of the revenue which now goes as cost
of collection, would go into the treas
ury. But suppose it should prove
necessary to double the rate, then i
would pay but $40 tax while the rich
man would pay from 5000 to $500 an
nually, where he pays, in fact, but
little under our present revenue laws,
towards the expenses of the State and
municipal Government.
1t is unnecessary now to consider
the details of the plan-how the rev.
enue should be collected, what ma
chinery should be employed and how
you would pro rata between the State
and county governments. 1t will be
time enough to consider these qeus-
tions' when the general plan shall
have been adopted. | have had but
little time to arrange the subject and
discuss it IS fully as [ desired.
hope, however, that enough has been
said to stimulate thought and develop
II determination to improve, if not to-
tally abolish Il system so objectiona-
BILE as the present one.
Should the people require version
of the fundamental law, they should
insist on the abolition of every. USE
less officer, reduce fees and salaries to
q fair rate commensurate with the
services required; cut off that most
fruitful source of fraud, corruption
and theft-specal legislation-and
adopt more equitable plan of taxa
tion, and the State would at once en-
ter upon q career of prosperity and
grandeur unequalled on the face of
the earth.