Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1892-03-04
THE PROFESSIONAL CLUB.
Hon. j. l.. Martin Discusses ''Taxation''
An Unusually Full and Interesting
Meeting.

evening, the members and their guest
, being attracted, doubtless by the universa
5 interest felt in the subject of the evening
! which was Taxation" and by the fac
that it was to be treated by Hon. j. l.
, Martin, who, within the past year. has Ina,
occasion to make a careful study of thi,
+ subject in connection with the proper re
3 vision of the corporation tax law.
: Taxation. the eSsayst said in beginning
is coincident with sovereignty. 1t has ex
listed in some form or other ever sine,
mankind began to live i'm any form of or.
gained society. In the earliest days il
was not 10y legislation. but by mandate. In
those primitive times taxes were not levied
or their payment compelled, for publ,
uses, like highways, schools. libraries. the
eNchequer, or to support legislative bodies.
but in some form or other the system ex-
isted In the old feudal times the lord or
baron compelled tribute from his serfs or
retainers in labor in military service. or
i'll produce. In some form or other taxa
ton was in vogue. The system of tithps
is as old as the Bible history.
Without attempting to trace the histor-
zeal development of the system of taxation
which prevails today in civilized countries.
Mr.. Martin proceeded at once to take M
the system as it is found in our own coun-
try and state. What is the underlying
principle, or basis of taxation? 1t is equal
lty OF sacrifice in return for protection of
one personal rights and property. Adam
Smith and James Mill, writing in the 18th
! century, advocated systems or PRINCIPLES
which were apparently contrary or antag-
onistic, but it was difficult to see why the
| fundamental principle was not substantially
the same There is first the idea of equality
OF sacrifice. and of protection Then fol
! lows the general theory that the more one
/ mas TO protect the more he should pay Tor
| protection. But when it comes to the
/ thought OF protection, and the basis of tax
atlon aS founded on this thought, the ques-
ton arises why not tax whatever needs
protection, as children. Old men. who can
not care for themselves. women, house
hold effects, the professional mans library
the workman's tools? We do not tax
these things because of the respect which
every true man pays in his heart TO those
who are weaker than himself-because of
the inherent, Unborn feeling that this is not
"A mans way of doing things We do not
tax church property, school property. and
other public property, because it is prop
erty held and maintained for the general
public good good which is enioyed. or
may be enjoyed. by every member of the
body polite
The question of taxation, or of eNemp-
ton from taxation, on account of debts
owing was next taken up. Many hold that
taxation being for protection the man who
holds the property, and who derives the
benefit from it, should pay the taxes on it,
regardless of the fact that he is owing
debt on account of ii. Under the general
principle Of common law my horse or nv
COW Is mine because the law protects il.
II there were no such protection there
would be no ownership. If | have ten
cows | derive the benefit from them all.
but owe somebody for one-half their pur-
chase, and because of this pay taxes on
only hVe. There is disputed question
here as to whether exemption is i'm accord
ance with the true principle of taxation.
but it has come to be the general policy TO /
grant exemption on account of debts owed.
II all property was put into the grand
list at its value, regardless of ownership |
or debts, the rate of taxation would be |
greatly reduced, and the burden of every |
man, the debtor included, would be pro- /
portionately lightened.
All power to tax is vested in legislatures. |
This power cannot be delegated to any in |
dividual or corporation. The only way in |
which 1t is or can be delegated is so far as |
TO enable towns, villages and local cOmmu- |
mites to levy taxes to pay local public ex-
penses.
Though this is the theory, taxation and |
representation do not necessarily 90 hand |
in hand. Women who may not vote must
be taxed upon their property The prop
erty OF minors is taxed, but they cannot
vote until they reach the legal age While
in the whole body polite. under our Re
publican form of government it is the gen
eral principle that there shall be no taxa
tlOn without representation, the actual
principle is that taxation and protection 90
hand IN hand. Taxation must be for pub
lie uses. \ man may not be compelled to
pay tribute for any other purpose. Under
what is known in law as the power of emf
nent domain, the body polite may take
anything that man has for public uses,
II private company were to construct wa
ter works to supply village or city with wa
ter ii could not take land wherever found
desirable or convenient to locate reservoir.
but II il was the village or city which was
constructing the water-works as a public
enterprise the land could be so taken. But
payment must be made of its actual value
Or for damage sustained.
Another principle in taxation, now well
established, is that legislatures may not in
may not levy tax upon the earnings re-
,eived, for instance, by railroad, for traf-
he originating outside the state, but the
value of the franchise of a railroad NAV be !
established from the amount of its earnings I
rom this and other traffic, and a tax be
evied on this franchise In other words.
he state may get at the value of railroad
franchise by the amount of its business |
rom all sources. AT the time the Yer 5
mont corporation tax law was enacted this |
principle was not well understood, or had \
lot been fully established by the courts
md that law levied a tax on the gross earn :
ngs of the railroads, those from interstate d
included. That was illegal, and l.
he error has now been corrected so as to
onform to the rulings of the courts
In the same way a peddler coming into
ermOnt with his wares from another II
tate may not be taxed unless all peddlers y
re taxed, those living in the state as well. $
Under the general principle of taxation d
nd protection the question has been II
aised i'll some states whether, if you license
he sale of intoxicating liquors, and levy
AK in payment for such license, you must
ot then protect the dealers in the sale of :,
UGH liquors. a,
The essayist discussed at some length is
ne old principle or method of direct r
tate tax TO pay state expenses, as against :
he new and existing system of a tax on
which was intended to fully
over the state expenses, although these
expenses had so increased that a state tax
] addition TO the corporation tax had be- Il
Dme necessary. In its underlying princi- r