The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1883-08-16
Total
.S9.2OO.oOO.OOO

Reckoning the average expenses of
each person under the present system
of taxation, by which taxes are in
cluded in their expenses, at 100000
for the first class, $4,000 for the Sec
ond class, $4,000 for the third class,
5000 for the fourth class, and
$3.50 for the last, it will be found on
calculation that the present annual
savings of the los, 100 persons having
incomes exceeding $10,UQ9~amount to
100000. while the annual savings
of the 18,O0Q,90U persons having in
comes of-fess than $1,000 amount to
nlly$520,O0O,OO0.
Nov consider what would be the
condition of these classes respectively
under more equitable system of tax
alton, by which they should pay
toward the support of the government,
in accordance with their income, and
not in accordance with their expenses.
The total amount of taxation in this
, country is over $700,00O,OO0 per an
num,of which $4O0,OOO,OO0 are avowed-
ly indirect, because all that are levied
by the general government; and a
very large part of the $500, 100000
levied by the state and local govern
ments is really indirect, because it is
imposed in such way that it can be
added to the prices OF goods sold to
and consumed by the people gen.
orally. Let us, however, assume that
two-thirds of the local taxes are really
direct and are not distributed upon
the consumption of the people at
large. There would still remain
$5O0,OOOOO0 of indirect taxation, with
the profit to be charged upon this
amount by wholesale and retail deal
ers, amounting to another $100,0O0,OC0
making $60O,OOO,0OO in all.
To this again must be added the in
crease of price of general merchan-
disc caused by that part Of our sys-
tenn of taxation called tariff" which
results in raising the cost of domestic
manufactures to the consumer in
nearly the same proportion as the in
crease oil cost in foreign mannfac-
lures subjected to the tariff. This
varies from year to year, and is vari-
ously estimated by those who have
examined the subject, but it appears
s75o,OOO,OOO. Still, as Mr.. Springer
has thought best to put it as low as
$50O,OO0,000. i will accept that
figure. This is, of course, another
item of direct taxation; only it is not
imposed for the benefit of the govern
ment, but for the benefit of domestic
producers. Thus we see that there is
a total direct taxation of $200,OO0OO0
per annum, and an indirect taxation
of over 81, 100000 per annum, be-
ing in all far more than half of all
savings of the American people.
The abolition of indirect taxation
would at once cut down the present
tax burdens of the people from ST.
35O,OOOOO0 to $70O,000,OO0 per annum,
being a saving Of nearly half the
whole amount. In this advantage
rich and poor would share. Direct
taxation, whether upon fixed property
or incomes, would amount to pretty
much the same thing, except that all
property tax would be more fairly
collected than an income tax. Let US,
however, suppose that an income tax
were collected from all alike, rich or
poor, without any allowance for liv-
ing expenses, and look at the enor-
nous difference which such system
would make in favor of the poorer
classes.
Dividing the whole community into
four classes, which, for convenience,
we will call the rich, having incomes
of over $10,OC0a year, the middling,
having incomes averaging $1,000 a
year, and the poor, having incomes
averaging $3.50 year, we shall find
that under a system of direct taxation,
the annual tax would be about per
cent of each mans income; whereas,
under a system of direct taxation,
which levies about IL per cent on the
cost of living, the Vanderbilt class
pay IL per cent on their incomes, the
millionaire class 5 per cent, the fairly
rich 1879 per cent, the middle class
1515 per cent, and the poor 16 per
cent.
This would be bad enough, but when
we compare the rates of taxes upon
the actual savings of each class, after
allowing necessary living expenses,
the disproportion becomes far more
startling. The present system of tax
alton levies, out of actual savings of
each class as follows.
INDIRECT TAXES ON SAVINGS OF PERSONS
Having incomes of 81, 10000 Under per cent.
100000
g q !" 10000 Over 40 ''
" 900 60
:. .' under $50
(includinp cotton and WOOL