The weekly tribune. [volume] (Great Falls, Mont.) 1891-1894, 1891-11-14
REVENUE AND TAXATION.
The Address on this Subject by Hon. r
f. Collins of Great
Falls.
Delivered at the Annual Reunion of
the Members of the COnstitu-
tiOnal Convention at
Helena.

Following is the full text of the adj
dress on Revenue and Taxation" de.
livered by Hon. Il. f. Collins of this cit,
at the second annual reunion of the
members of the constitutional conven-
ton held at Helena last Saturday:
One of the important questions con
fronting the Legislature today is that of
taxation. You will all agree with me
that in our deliberations, both in COM
mittee and in convention. we found it
not only a very important but a very
perplexing question. Since the earliest
times statesmen of all lands have had to
contend with the same difficulty that
has troubled us. and, apparently. we are
no nearer "a solution Of the problem than
were our forefathers.
A certain revenue is necessary to lie
fray he expenses of the state. How
shall it be raised with the least friction?
The question of taxation has, too, be-
come important in the view of the social
reformers and political philosophers, who
see In the modification of the present
methods OF taxation a panacea for the
Ills which now atilict the social organism
ana the means of ameliorating the con-
dltlon OF suffering humanity by lessen
ing its burdens. 1t is not my purpose TO
weary you with a discussion of the legal
questions involved in taxation, nor TO
quote you an array of statistics: but
rather to suggest certain lines If thought
which may be elaborated by our law
makers and bear fruit in the shape of
legislative action.
In Its most comprehensive sense a tax
is a burden. or charge imposed by the
sovereign power of the state upon the
persons and property within the juris-
dlctlon of that power. for the purpose of
raising a revenue for defraying the en-
penses OF government. 1t differs from a
tribute or forced contribution in that it
IS self-imposed through representatives
OF the people upon whom the burden is
TO fall. In theory the burden is imposed
upon all persons and property alike. and
is compensated for by the equal protec-
ton granted to all.
If we follow the history of taxation we
shall find that our modern methods con
tain but little that is new. The Hebrews
under the theocracy, had a capitation
tax, a special poor tax and numerous
tthes. In the Athenian republic no
direct taxes were laid either on real or
personal property, the revenue of the
state being derived from a tax on i'm
ports and various licenses. In Rome, in
the palmy days of the republic, there
was no direct taxation, but under the
empire taxes were numerous and heavy.
In Venice, a state that was the most
progressive and cultured of its age, a
land tax, based on rental value, was the
principal source of revenue. But in all
these systems little or no regard was
mid 70 tho a,rn1,,o. " Al -
and in general the noble was exempt at
the expense of the peasant. 1t was not
until the time OF Adam Smith that the
true principles of taxation were enun-
ciated. In his Wealth of Nations. the
great economist laid down the maxims
upon which the modern system OF tax
alton is theoretically based. OF these
maxims the only one pertinent to the
present discussion is the first. Smith
announced as the fundamental principle
of all taxation that the subjects of every
state ought to contribute towards the
support OF the government. as nearly as
possible in proportion to their respective
abilities; that is, in proportion to the
revenue which they respectively enjoy
under the protection Of the state.
Since equality in the imposition of the
burden Is the very essence of the right
to tax, it follows that taxes should be SO
levied as to cause an equality of sacrifice.
That is to say each person taxed should
feel the Inconvenience arising from the
payment Of his share no more than any
other person from the payment of his.
True, THE is an ideal condition that can
probably never be realized. Yet, that it
might be more closely approached than
at present is undeniable.
Does our system of taxation conform
to these principles? Undoubtedly it
does. The theory upon which the pro-
visions OF our constitution are based is
that the revenue of the state shall be
derived from a uniform rate of assess
ment and taxation founded on a just
valuation. Our constitution, moreover,
goes beyond any similar document in
providing that every possible class of
property susceptible Of private owner
ship shall be assessed and taxed, public