Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-12-31
How 10 Levy Taxes.

II is theory OF many persons that direct
taxation Is better than indirect; that tax
on real estate Is fsirer than tax on con-
sumption. Mr.. r. NJ. FRARY, Of IS Worth
street, New York, writes TO the World as
follows:
as II not more feasible and economical
for the Government 10 raise Its required
revenue by system OF direct taxation an
by the means OF protective or revenue
tariff Would not thus each and every
citizen know the precise amount OF taxes
he was assessed for and feel better salts
fiedi"
BY no means. On the contrary, should
The Federal Government undertake to raise
all It's revenues by direct taxation this
measure would convert some OF the States
ut least into the abodes Of paupers.
The Federal Constitution provides that
"direct taxes shall be apportioned among
the several State" according TO their re-
Ypective numbers" Mr.. FGARY, therefore,
must admit that at the present time the
Federal Government levies no taxes which
can be called "direct" in the sense In
which this word Is used IN the Federal
Constitution, inasmuch as the internal taxes
are not apportioned amongst the several
States according to their respective num-
bers.
We assume, then, that Mr. FaARY means
10 advocate Federal tax upon real estate.
And we proceed to show how such tax
would operate in Virginia. This state
contains about one thirtieth OF the popula'
ton OF the United States, and therefore
under the constitutional provision quoted
above would have to pay one thiriieth oil
The expenses OF the Government. In the
absence Of all tariffs, "protective or reve.
nue." we should have to raise at least one
hundred and eighty millions OF dollars by
tax upon real estate. Virginia's proper
tion would be say six millions OF dol.
lars, or tax OF two dollars on every
one hundred dollars worth OF real
estate In the Commonwealth. This, re-
n<mber, would be in addition 10 the State
and sounty and city taxes upon real estate,
Could the people Of Virginia stand such a
tax as that, Could they pay six millions
OF dollars year IN lIrect taxes 10 the Fed
eral Government and three millions TO the
State and her counties , In this city the
combined taxes would amount TO three dol
lars and forty cents on each hundred dol
lars worth OF real estate. The man who
owns a tw0.tbousand-dollar house would
have to pay every year s6S OF taxes,
and the man who owned ten thou
sand dollars worth OF real estate
would have to pay every year S3iO OF
taxes. No community could sustain itsel!
under such system OF taxation. Real es-
fate would fall 10 price. No man would
wish to own houses which. after taxes, in.
surance, and repairs were deducted from
their renting price. would yield less than
3 per cent. per annum. Sucis taxes would
De the same as n mortgage bearing S3i an
nual interest on each thorsand dollars
worth OF property. The price OF ten
thousand.dollar house would soon drop to
five thousand under such a system OF taxa
zion. In fact, such tax would soon rem
der properly Of no value whatever. 1t
couldn't be sold al all.
/. II not evident that Mr.. FRARY is totally
in The dark as to the comparative results OF
tarin taxation ana direct taxation! And
yet there are Thousands Of persons who
really believe that II would be better fol-
the Government to raise its revenues by
direct taxation than by levying customs
duties.