The Morning herald., 1877-12-01
TAXATION.

Au0 ouOInOub 1uCIcdSo VI t0Aco III a.
the departments Of government within til
last decade has excited alarm among th
people. Already the draft upon the earn
fngs absorbs one-fourth or more Of tbei
net gains. While real estate and othe
forms Of accumulated profits pay an equa
share, profits, rents, and interests ar
shrinking, while the e1actious for the pu'
poses of government have been steadily in
cssasing until the people have becom
restless. At such time il is well to in
quire into themsthods Of these oppressiors 8
and to see whether there be not come lesi
innate mode of relief. Government is q
sscial organization, and implies function
ores and expenditures that must be main.
tanned, certainly by contributions of all.
for all are interested. The single object OF
taxation is to obtain given amount Of
money. Yet the modes by which that
object may be secured are various, and it
is regarded as the mos. difficult and deli
cate task Government is called upon to
perform. Taxes are imposed in all con-
stitutional governments, not at the caprice
of rulers but by the representatives of the
people. If the property of the citizen
must be taken to meet the exigencies Of
Government, it becomes highly important
that those from whom it is taken should
feel that it is equitably done. Nothing
in all the functions of government is more
to be desired than that its mode of raising
- revenue should be so wisely and econom-
ically arranged, SO manifestly just and
equal, that no oppression shall arise from
sense of oppression. The government
claim is prior one. and it is peremptory.
The laborer must contribute part of his
wages, the merchant and manufacturer o.
their profits, the capitalist of his interest,"
or rent. The great question in regard 10
taxation is, On what principles shall it be
founded? Adam Smith, in his " Wealth |
Of Nations" lays it down as maxim |
:" that the subjects Of every state ought to
contribute to the support of the govern.
nent as nearly as possible in proportion to
their respective abilities that is, ir pro-
portion to the revenue they enjoy under
the protection of the state" If this theory
be true every inhabitant-old or young,
male or fsmale-is bound to contribute a
just proportion. In this country there are
two general systems of taxation-one by
the Federal Government and the other BY
State authority, the latter embracing all
the forms Of municipal government. Az
a rule taexs are Of two kinds, direct and
indirect. A direct tax is demanded of the
people or persons who it is intended shall
pay it; indirect taxes are dema7 ded from
persons in the expectation that they will
indemnify themselves at the expense of
others. State Governments, as rule, relv
upon direct taxes. The Federal Govern.
msnt has mixed system imposing taxes
In every form, direc. and indirect, except
ing poll.tax,-the most reliable tax, how
ever, being indirect. Of all the mode. of
raising revenue that by tariff duties is ad-
mitted to be the most effective and the
most readily enforced, but there are many
forms Of lsvying these taxes, s,-some by ad-
valorem duties, Others by specific taxes.
II all should contribute equally in pro-
portion to their abilities" it is obviou,
that such taxation cannot have an equal
bearing, because under the system men are
a1ed In propsrtion to what they consume, {
not in proportion to their wealth. Men &
are thss taxed according to the mouths ,
they have to feed and the bodies they have /
70 ciothe. Again, the manner is not plain t
70 the psrson who pays an indirect tax.
II person buys carriage does he realize
that he is paying large Government tax
sy 70 doing! Does he know how much
hs know how much be is paying On the
cost Of the lining, trimmings, paints, var. !.
nish, etc., of which it is made? 1t is the ,
'ame Of all commodities that pass through :
Ehs Custom House. People seldom realize t
when or hsv much they are taxed and it /
3 for this reason that this unseen and Il
'nfelt " mode Of taxation is so unpopular \
but there are other decsptions in this mode c
'f taxation. In many cases they are laid t
Tor the express and avowed purpose of in. {
creasing the price Of similar articles pro. g
1uced at home, thus increasing the tax on
he people while producing no correspond