Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1891-11-04
THE TAX SOLUTION.

ize Profits and Opportunities.
The tax solution undoubtedly takes
the precedence of all others for the set
tlement of some Of the enormous abuses
against which the common people are
organizing themselves throughout the
length and breadth of the land. This
is proven by the readiness with which
it has won the Endorsements of those,
including some of the best intellects of
the country. who have taken the time
to give the method careful study.
1nasmuch, however, as this (termed
variously as the cumulative, graduated
and progressive taxing method) is q
compare lively recent development of
the search for economic corrections, it
has considerable share of its educa-
tional crusade yet to perform ere it
shall have won its way through the
voices aud pens of its disciples into the
minds and convictions of the masses in
toto. Possessed in my own mind of the
utmost confidence in the superiority of
this measure for the prevention of
certain economic ills, l desire to add a
few more ideas to the recent literature
upon the subject in the hope of still
further expediting the progress with
which it is at present finding favor.
To begin with, 1 call attention to
some features of taxation considered
apart from its use as solution or cor
rection IL the field of industrial affairs.
Long as people shall have need for the
authorities and duties of government.
so long will they be under the necessi-
ty to raise revenue for the payment of
the expenses attendant upon the same
We cannot have public or common
preservation of the records, public or
der, public highways or public busi-
cannot pay for them as public or COM
mon affairs without doing so from
public or private or common fund
As there is no likelihood of there be-
ing found any measure so superior to
that of taxation as to cause it to be en-
tirely or even largely substituted for
taxation. it is not probable that gov
| ernments will be maintained independ-
ent of taxation. But the payment of a
tax is not, in its real and proper sense,
essentially burden. 1t is no more so
than the payment of a sum for days
labor, the plowing of field, the min
ing of ton of coal or the making of a
suit Of clothes. There are some serv-
ices which can be performed far more.
economically and satisfactorily as pub
lie affairs than they can be as private
affairs; consequently it is a great ad-
vantage to have them performed in a
public manner and the expense pro-
vided for from public fund Looked
at in this, its proper, light, taxation
hn od cd 70 hn ~,
| stead of burden.
But to justify taxation upon the
ground of its being superior mode of
providing for superior mode of service
| is not to conclude that taxes may be
levied without any particular regard to
method, for that would be to commit a
grave error Why is this? Because tax
alton always exercises an influence in
| regulating the development or course
of industries, and regulates them right
ly or wrongly according as it is rightly
or wrongly applied Levied in one
fashion it produces healthy and safe
| development of industries; levied in an
| other fashion it produces an abnormal
and dangerous development of indus
tries. This being so, two questions in
stead OF one always properly come up
for consideration when we set about
devising a system of taxation to be
| levied for the public expense:
1. How much revenue do we need?
9. What effect will this tax have up
on the industries of the people?
The first question is a mathematical
one to be settled by reference to esti-
mates based upon the annual expendi-
lures; the second is an economic ques-
ton to be settled by reference to needs
demanded in our industrial system.
1t is with the consideration of mat
ters involved in the second question
that wish briefly to deal in the arti-
cles to follow, including an attempt to
explain wherein the tax solution would
fiil some most important wants
The claim made that taxation repu-
lates the course of relative progress of
industries, is borne out both by the
reason OF the thing and by practical
experience. The reason for it we find
to be as follows: Industries prosper or
| decline IL proportion to the profitable
ness or want of it in them, and the cost
| of taxation is like that of the cost for
| labor, Insurance, supplies, shelter or
anything else of similar character: it
goes into the items of expense and be-
comes a factor in determining what
| shall or shall not be left for profits.
Coming out of the profits, as it does.
then, or out of the principal, in lieu of
there being no profits, it is bound to
exercise a powerful influence in deter
mining the manner of their develop
ment as to each other.
What do we find for this claim in the
line of practical experience? / cite a
couple OF instances first to sh-. not
only that taxation Il S'-anossd 20 " 10 60 -
regulator OF in~u ~.ustries but that it has
peeh eh'. Dyed as such and found to
work admirably. The tariff tax is one
case in point. In the early existence
OF our government, when we were
without manufactures of any conse-
quence and foreign capitalists were de-
termined to do all possible to have us
remain without them, a tariff tax was
lad by our congress upon foreign
goods In order to encourage the build
ing OF manufactures within our do
main The tax served to restrain the
foreigners to sufficient degree to
enable American manufacturers to get
a foothold, and demonstrates very
forcibly that taxation is not only reg
uiator OF the course and progress of in
dustries, but a most potent one.
Another case in point is that of the
provision in the national banking act
for ten per cent tax upon state bank
issues The object of the provision,
which was to drive state bank issues
out of circulation, was effectually ac-
complished and furnishes another in
stance of the most practical sort in
substantiation of the theory that tax
alton regulates
1 refer next to a couple of instances
of regulation now in force, and of such