The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-05-04
PERHAPS AN INCOME TAX.


The drift of things seems to be to-
wards the establishment of an income
tax, and if present conditions and ten
denotes continue that almost certainly
will be the outcome. 1t is evident that
the expenses of the government cannot
be. at least will not be. materially di-
minished for many years to come. They
are more likely to be increased. There
is no prospect of any material diminu-
tion until the pension list begins to be
reduced by deaths. which will not be
for some years, and by the time that oc-
ours it is probable that other items of
expenditure will have increased enough
to keep the aggregate up to the old
mark. 1t is pretty safe to predict that
this will never again be less than a
billion-dollar government.
Assuming that the government will
require as much revenue hereafter as it
has heretofore, if not more, where is it
to come FRONT There are but three
sources, viz, customs duties, internal
duties and an income tax. As the DEM
ocratic party is pledged to reform the
tariff by wholly repeating OF greatly re-
ducIng the duties on foreign imports
there will be material reduction of
revenue from that source. There is no
probability of an increase of the tax on
whisky, and they will not dare to re-
store the duty on sugar. If these con-
ditions are correctly stated there is
nothing left but an income tax. This
has been openly advocated by not few
Democratic papers, and is popular with
the rank and file of the party, especially
in the South, where it would affect COM
paratively few persons.
The arguments in favor of an income
tax are that it would fall upon that
class of people who are best able to con-
tribute to the support of the govern
ment; that it would not act upon prices
like a tax upon commodities; that it
would not affect the normal distribution
and employment of capital. or interfere
with the free action of labor, and that
the revenue from 1t would increase as
the wealth of the people increased. All
these arguments presuppOse that such
tax can be equitably assessed and easily
collected. But right here arise serious
difficulties. 1t is extremely difficult to
make q just assessment of incomes for
taxation and to collect what is rightly
due. An income tax is essentially in
Quisitorial in character, and offers
,kok Go
evasion. Resting. as it does. mainly
upon voluntary returns and assess
ment, it places honest men al. dis
advantage and offers dishonest ones a
premium for the preparation of fraud.
1t has been called tax upon honesty,
and bounty on perjury and fraud.
None of these objections goes quite to
the heart of the question. They all
admit the essential justice of an income
tax, provided it is equally assessed.
fairly graduated as to exemptions, hon.
estly returned and faithfully collected.
True, it is inquisitorial, but all taxes are
more or less so. and we fear it must be
added that there is more or less dishon-
esty in making returns of property for
assessment under all systems of taxa
ton.
Probably the strongest argument
against an income tax is that it would
discourage all saving and end by driv-
ing from the country those with large
fortunes unless by fraud they could es-
cape the tax. 1t has been called COM
munistic tax. because it seeks to equal
ize fortunes by discrediting saving. In
certain Sense, under popular suffrage
all taxes are communistic. for the reason
that those who pay no taxes at all. or
very little, are continually imposing
taxes on those who pay much more than
themselves. Ia an income tax, then,
materially different from other taxes in
this regard7
The subject is likely to assume prac-
tical Importance in the near future. and
should be carefully considered in all it's
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