Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1891-01-15
INDIRECT TAXATION

In your account of what l said about
taxation before the Farmers Institute
you represent me as having said that it
is nonsense to tax property. You no
doubt had in mind the kind of property
particularly spoke of, the comparative
ly trivial property of certain concerns
that accumulate great wealth not by
the owning of much property, but by
the doing of much business As others,
however, may not so understand it,
there should be some explanation made.
Ny plan is not to abolish taxes on prop
erty, but to reduce them. l would do so
by raising large part of the public
revenue by indirect taxes. This would
make taxes on property so light that an
owner of it would not have the same
motive as at present to conceal it from
taxation, and in addition would far more
equitably distribute the burdens of gov
eminent.
Our present Constitution, adopted in
1851, makes property the basis of taxa
tion. 1t provides in substance that all
the property of the State shall be taxed
uniformly and equally. If one-tenth of
the complaint which this system has ex-
cited be well founded it is enough to
condemn the system.
There are two objections to restrict
ing taxation to property alone. In the
first place the richest are the very peo-
pie who own the kind of property which
can be easily hidden. The wealth of our
millionaires is in stocks, bonds and
credits. These are mere invisible legal
claims or rights. Real estate cannot be
hidden. This fact should array our
farmers against confning taxation to
as its result, as every fair
student must admit, has been
unfair toward the farmer.
Secondly, there are many great and
powerful interests which practically es-
cape because their riches come not from
the property they own, but the business
they do. The Western Union Telegraph
Company owns a mere trife of property
compared with its enormous wealth and
power. 1t has no property in this State
for the State to tax, except its poles,
wires and instruments. Yet it is said to
be capitalized at SS0,000,000. What an
absurd thing to attempt to tax such
power on its property 1t has none to
speak of.
There is a way toEeach such institu-
tions. The commonest mistake made
in thinking about taxation is that proper
ty is the only thing there is to tax. This
is very great mistake. There are many
things which may be taxed that are not
property. Incomes may be taxed. Busi
ness may be taxed The right of for
eign corporation to do business in this
State may be taxed by this State. Many
other things might be mentioned. Now
the only way in my judgment to make
a great deal of the wealth and power of
the country contribute its share to gov
ernment is to reach it by some indirect
tax. For instance, we might tax the
telegraph company on its gross receipts,
its annual volume of business. We did
so for awhile, but the Supreme Court of
the United States decided our statute
unconstitutional Some of the States
have had the courage and good sense to
tax foreign corporations according to
their gross receipts in the whole Union.
The Republican legislatures of the last
few years have led the way to this re-
form in Ohio nobly, receiving latterly,
it is but fair to add, influential ard in
telligent aid from many Democratic
members. The most conspicuous feat
ure of the new movement is the liquor
tax which raises over two millions ev-
cry year. This is a specimen of how
productive tax may be laid otherwise
than upon property. 1t in no manner
concerns property-it is merely upon the
selling of liquor. Now l contend that
the sensible thing to do is to enact an
extensive system of indirect taxes in
Ohio so as to reach the great interests
that are favored by operation of the
present system, and relieve to certain
extent the oYerburdened and suffering
property of our commonwealth.
The construction of such a system of
indirect taxation, after the start which
legislation has made, would
progress rapidly in Ohio were there not
difficulties in the road growing out of our
think this great work
worthy of the most distinguished
statesmanship-could be facilitated if
the Constitution were amended so as to
allow the General assembly to
levy taxes of all kinds other than a poll
tax, in addition to property taxes.
| would prefer to retain the present
provision that all property taxes shall
be uniform, but there ought to be un-
unlimited power outside of and in addi-
ton to property taxes.
G. l.. WEEMs.