The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-12-27
NECESSITY or TARIFF REVISION.
The Only Proper Purpose of Taxation
Is for Government Needs.

NECESSITY or TARIFF REVISION.
The Only Proper Purpose OF Taxation
Is for Government Needs.
The necessity for a comprehensive re-
vision OF our tariff laws, in the interests
Of greater industrial and commercial
freedom. need not be urged at great length
upon the present congress, one branch OF
which has been recently chosen by the
people, with that object distinctly in view,
nor would It be appropriate here TO dis
cuss at any considerable extent, the par
ticular alterations that ought TO be made
in the free and dudable schedules, in order
to make the revision conform to the re-
quirements Of the situation because the
proper committee of the house of repre-
sentatives is engaged in the preparation
Of a measure which will probably be pre-
scented for consideration to that body be-
fore this report is made. But 1t is not
improper, under the circumstances, to
submit some suggestions upon the general
principles involved in such legislation, and
the best methods Of applying them. in
order to secure, as far as possible equal
ity in the distribution of the burdens Of
taxation and avoid, as far as possible, the
taxation OF citizen for the benefit Of
another, or Of one class for the beneht OF
another.
The only proper purpose for which taxes
can be levied and collected by the United
States is to raise revenue for the support
of the public service and the payment OF
public obligations, and IL follows, as
plain matter of justice, that no citizen
should be required TO contribute more than
his equal share toward the accomplish
ment OF these ends. While absolute equal
ity is not attainable under any system Of
taxation that can be devised, II Is possible
to correct the fragrant inequalities which
characterize our existing legislation; and In
doing so il is the imperative duty of those
who are charged with the responsibility of
making the revision to select such subjects
for taxation and prescribe such methods Of
assessment and collection as will secure
the necessary means for the support of the
government with the least possible injury
10 any part of the people, but without
gard to the groundless apprehensions or
unreasonable opposition TO timid or selfish
interests.
Duties According to Value.
The equal distribution of the burdens of
taxation depends not alone upon the rates
of duty imposed upon the different arti-
Giles. but largely upon the manner in which
the amount of duty is ascertained and
fixed by the law. The basis OF the duty
must be unit in some form, and the ques-
ton whether It shall be computed upon
I e weight, quantity, number or dimen-
sions of the article. or upon its actual
value is one which lies at the very founda-
ton of every proposition TO impose taxes,
and upon it's determination depends to
great extent the justice or injustice OF
every revenue measure. The imposition of
specific or compound rates of duty is so
inconsistent with the true principles of
Just taxation that nothing but the plainest
necessity can justify it in any case, unless
il be in a few exceptional instances where
the articles taxed at the same specific rate
are so nearly equal in value that the dan
ger of unjust discrimination Is not greater
than it would be if an official valuation
were required II is manifestly unjust to
citizen 70 the amount
of taxation on a yard of cloth worth 81
that another citizen pays on a yard Of cloth
worth s.. In such cases 1t is evident that
one has been taxed too much for the sup
port OF the government or the other has
been taxed too little and the law has not
dealt fairly with them in a matter which
affects the equality Of their rights and
duties citizens. tariff is a tax upon
consumption, and the condition Of those
purchase and use the eoarser and cheaper
grades of goods should certainly protect
them against unjust determinations, even
II IL does not entitle them to some measure
of exemption from the exactions of gov
eminent. Taxation, according TO value,
does injustice to no one unless the rates
are too high, or are unequally adjusted
upon articles OF the same general character
and utility. 1t is distinctly the American
system Of taxation and is recognized as
just and equitable by the people III all the
states in their laws for the assessments
and the collection Of local revenues upon
the ad valorem basis. 1t Is not probable
any OLQeT uleLQOu WOulu NC LblCAlNSu
in any state OF the union where the tax Is
imposed solely for the purpose of raising
revenue with no incidental or Interior OBJ
morals; and It would never have been toll
Grated in our federal legislation, except in
rare Instances, If the use of the taxing
power has been limited to the real pur-
pose for which IL was delegate.
Specific Rates.
As a means of concealing from the tax
payer the usual proportion which the
charge upon his earnings bears to the value
Of the taxed article, specific and COM
pound rates have been for many years in
geniously employed to mask and perpetu-
ate a system which subordinates the in
terests Of the government to the exac-
tons Of private individuals and corpora
lions engaged in particular industries and
trades.
But the objections urged against the ad
valorem system Of the tariff taxation are
not generally based upon the proposition
that IL lacks the element OF justice or
equality, but usually upon the grounds that
1t is difficult Of administration and that 1t
furnishes strong Inducements for the COM
mission of frauds and per1uries in order to
secure false valuations Of imported goods.
While there is some force in this conten-
ton, I am not able to see how unequal
taxation can be JUSTIFIED upon the ground
that the burdens upon the people ought
public officials may be dismissed or that
the honest citizen should be punished in
order to prevent the dishonest one from at
tempting to violate the law
But the difficulties of administration
have always been greatly exaggerated.
and so far as they really existed in for
mer times have now been much dimin-
ished by our increased facilities for ascer-
tanning market values in other countries
and by the improved organization of our
customs service. The markets of the
world have been brought so near to each
other, by the use OF steam and electricity.
that, as TO all staple articles especially,
1t Is now much more difficult TO find their
cost or value abroad than at home: and IT,
under these circumstances. it shall be
demonstrated that official intelligence and
integrity cannot be safely relied upon for
an honest collection of the revenues under
the existing system of indirect taxation,
II will become necessary to consider
whether some other method cannot be
devised to raise moneys for the support Of
the government.
SO far as the inducements to commit
frauds and perjuries constitute objections,
the slightest examination of the subject
will show that they are much greater
under the system OF compound rates.
which Is one Of the most prominent feat
ures Of our existing legislation, than they
could possibly be under q purely ad