The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-06-05
income Tax.

III 1911, y. DOOlttte OellN-
cred speech at Chicago on the income tax,
and incidentally considered other modes of
taxation. BY request of the democratic
central committee of Cook county it was
recently published. 1t is a speech of marked
ability and great research. Because of the
authors eminent position in the country,
AID the weight andinhuence of any opinions
be may express, as well as because of the
interest and force of the speech, we would
like topublish it entire, but we can command
space IN our columns for only portions
thereof
THE FEDERAL SYSTEM OF TAXATION AND ITS
EFFECTS.
In order to know who has paid the money
we must know upon what system 1t was col
lected.
can not give better idea of the character
OF the federal system of taxation than to quote
the words of senator Sherman, now secretary
of the treasury, spoken in the senate on May
q, 1862, when the internal revenue law was
under discussion.
He said:
"Tn ere is not a single article of property,
personal or real, taxed by this bill. Lands,
alton under this bill. All personal property
of the citizens of this country is exempt
horses, cattle, notes, bonds, everything man
can possess is exempt"
Mr. Sherman's words are true. too true. The
property of the country is not taxed by the
national government; but while property has
haired in the burden of the government, the
people have paid the enormous sum of five
thousand millions of dollars in period of
fourteen years, and now are paying. annually,
taxes to the extent of nearly three hundred
millions.
If property has been untaxed, the people
have paid this vast revenue on some basis
other than the value of their property.
In order TO know who paid the money we
have out to examine the system under which
it was cole cted, the revenue on imports, and
the internal revenue, both of which have been
employed by the government.
fnnn fn~ inn Opfc u
tariff, is collected ON articles imported from
abroad The tax Is paid by the importer at
the custom house. When he gets the goods
into his possession he adds the amount OF the
tax paid by him and sells the goods to the
dealer. The dealer, in turn, sells 10 the con-
sumner, who Is the man who pays the tax. The
importer merely advances the tax, loans the
money, 50 TO speak, and charges interest on it
10 the man he sells to. The consumer who
uses the goods is the one who pays IL back.
Every merchant or shopkeeper isf in reality,
tax gatherer for the government. The tax
paid Is concealed in the in creased price of the
article, and the purchaser can not tell now
much he pays for tax and how much he pays
for the goods.
This is the operation of tax on consump-
ton. 1t is levied ON those articles which the
people use, and consume in using. 1t is not a
tax upon what "a man owns, but a tax on what
he has consumed. 1t is not tax on wealth,
but on life, for it falls upon those articles
which man must use in order to live.
WHO PAYS THE TAxEs.
of course it is something which no one can
state with anything like certainty, the pro-
portion ofthe consumption tax paid by rich
men, and the proportion paid by the rest. 1
have not been able to find an estimate on this
subject made by any reliable authority, but
DO not hesitate TO give my opinion that those
people whose earnings do not exceed three
thousand dollars per year pay 9S per csnt. of
all the taxes collected by the UhIsed states at
the present time.
The burden of taxation rests upon these PEG.
pie. Ii was purposely framed as to rest
up n the poor and the moderately well of in
the community.
Ii was designed 10 permit the large fortunes
to escape with merely trivial taxation.
The total amount of revenue
from 1862 to 99I O9I ,577 So
OF this amount 65.39S 10 was received
from the sales of the public lands.
Taere was also received for direct
..............................- l4,Sl0,lS9 80
The income tax from 1853 to 1858
produced .......... lS595I,75S 40
Estimating the income tax from
1868 to 1871, when IL was abol.
ished. ....................... 100000 90
Tot fol TOW