The Colfax chronicle. [volume] (Colfax, Grant Parish, La.) 1877-1981, 1890-07-12
THE CANYONS or TAXATION.


l
All taxes must evidently come from
the produce of land and labor, since
there is no other source of wealth than
the union of human exertion with the
material and forces of nature. But the
manner in which equal amounts of tax
alton may be imposed may very diner
emily affect the production Of wealth.
Taxation which lessons the reward of
the producer necessarily lessons the in
centive to production; taxation which is
conditioned upon the act of production,
or the use Of any Of the three factors of
production, necessarily discourages pro-
duction. Thus, taxation which dimin-
ishes the earnings of the laborer or the
returns Of the capitalist tends to render
the one less Industrious and intelligent,
the other less disposed to save and in
vest Taxation which falls upon the
processes of production interposes an
artificial obstacle to the creation Of
wealth. Taxation which falls upon
labor as 1t is exerted, wealth as it is
used as capital, land as it is cultivated,
will manifestly tend to discourage pro-
duction much more powerfully than
taxation to the same amount levied
upon laborers, whether they work or
play, upon wealth whether used pro-
ductively or unproductively, or upon
land whether cultivated or left waste.
The mode of taxation is, in fact, quite
as important as the amount. As a small
burden badly placed may distress .
horse that could carry with ease much
larger one properly adjusted, SO people
may be impoverished and their power OF
producing wealth destroyed by taxation,
which, If levied in another way, could
be borne with ease. A tax on date trees,
imposed by Mohammed Ali, caused the
Egyptian fellahs to cut down their trees;
but tax of twice the amount imposed
on the land produced no such result.
The tax of 10 per cent. on all sales, i'm
posed by the Duke of Alva in the Neither
lands, would, had been maintained,
have all but stopped exchange while
yielding but little revenue.
But we need not go abroad for illus
trations. The production OF wealth in |
the United States is largely lessened by |
taxation, which bears upon its pro-
cesses. Ship building, in which we ex-
celled, has been all but destroyed, 70 |
far as the foreign trade is concerned. |
and many branches of production and |
exchange seriously crippled, by taxes
which divert industry from more to less
productive forms.
This checking of production is in
greater or less degree characteristic of
most of the taxes by which the revenues
OF modern government are raised. All
taxes upon manufactures, all taxes upon
commerce, all taxes upon capital, all
taxes upon improvements are Of this
kind. Their tendency is the same as
that of Mohammed Ais tax on date
trees, though their effect may not be SO
clearly seen.
All such taxes have q tendency 70
reduce the production of wealth, and
should, therefore, never be resorted to
when it is possible to raise money by
taxes which do not check production.
This becomes possible as society de-
Felops and wealth accumulates. Taxes
which fall upon ostentation would sim
ply turn into the public treasury what
otherwise would be wasted in vain show
or the sake Of show; and taxes upon
wills and devises of the rich would
probably have little effect in checking
he desire for accumulation which, after
has fairly got hold of man, becomes
J blind passion But the great class of
axes from Which revenue may be de-
ived without interference with produc-
ion are taxes upon monopolies-for the ,,
'rofit OF monopoly is in itself . tax t.
evied upon production, and to tax it Is
imply to divert into the public Golfers
That production must in any event pay. '
But all other nionopolies are trivial in
xtent as compared with the monopoly :
land. And the value of land ex- =
ressing monopoly, pure and simple,
in every respect fitted for taxation. g
Taxes levied upon the value Of land !
annot check production in the slightest =
egree until they exceed rent, or the i,
Alue OF land taken annually, for, un- t
Ike taxes upon commodities, or ex- t.
nange, or capital, or any of the tools or
rocesses of production, they do not ),
ear upon production. The value of e
md does not express the reward of n
reduction, as does the value Of crops,
cattle, of buildings, or any Of the q
lings which are styled personal prop :,
'ty and improvements. 1t expresses
le exchange value of monopoly. It is 81
st in any case the creation of the in II
vidual who owns the land; it is created q
T the growth Of the community. Hence - :,
70 community can take 1t all without
any way lessening the incentive to "a
,provement or in the slightest degree re
seeming the production of wealth. o.
axes may be imposed upon the value a
land until all rent is taken by the 81
ate, without reducing the wages Of tv
Dor or the reward of capital one iots; L
thout increasing the price of single ~