The Providence news. (Providence [R.I.]) 1891-1906, 1894-01-01
! Discussion Of the General Quss-
tion Of Such Taxation.
ARGUMENTS BOTH PRO AND CON.
a Interesting Resume of the Leading
Points Advanced by the believers In
and Opponents OF an Income Tax by
Mr. W. Job Reynolds of This City.


ment, cumming up the arguments pro and
con may claim the attention of all who
are interested in national affairs.
1t may be very evident to those who are
accustomed to consider the blessings
which accrue to the citizens OF q
great republic, that this vast
machinery which directs, controls
and modifes so many forces
must require for its proper maintenance
some financial system which shall succeed
in qualifying it for its work by full
treasury. 1t is not desirable that our
government should be oxtrcvagantly ad-
ministered, but senseless parsimony will
have a deleterious effect upon national
life, at the same time compromising our
honor and dignity. The growing needs
OF this country will make an increased ex-
penditure absolutely necessary. Our
country is yet young:
"1he rudiments of Empire here are plastic
yet and warm.
The Chaos of mighty world is rounding into
form"
A government which is to be admins
tered by and for more than sixty millions
Of human beings, demands an answer TO
che question, what sort OF taxation will be
most consonant with the public good.
The emperor of Germany and DIR. Miguel,
the Prussian minister OF finance, are
struggling with this same problem OF
equitable taxation, which has become a
very important consideration in Germany,
owing to the increased demands which an
enlarged army will make upon the Ger
man treasury.
No system OF taxation ever yet proposed
by government has given universal and
permanent satisfaction. In the very ma
ture OF the case the word " taxation y has
never been welcome word to the great
masses of humanity. IL Is owing to the
fact that the taxgatherer OF Italy de-
mands more than 50 per cent. OF the earn
ings OF the sons OF toll that our country
has become the Mecca to which the
Italians turn, hopefully anticipating i'm
munity from that which they regard as
IN umitigated evil.
The Democratic administration Is SOL
emnly pledged to the reduction of the
tarin. A fair estimate, assuredly within
bounds, makes the loss of revenue which
will ensue reach the enormous sum OF
from 30 to 70 millions. To meet this an
income tax has been suggested, and pre-
1iminary statement, lacking, however,
ofncial confirmation, puts before us
compromise: viz, a tax on legacies, on
rentals from property, on the incomes OF
nonresident, and on the earnings of
sarge corporations, above given figure.
Any tax which does not rest lightly on
tho necessaries OF life, moderately on the
comforts of life and most strongly on the
1uxuries of life will fail OF success A tax
on the Injuries can be avoided by aban-
donment OF their use, but not so tax on
The necessaries Of life. Such tax will be
productive and at the same time oppres-
Gfve, and history records many unsatis-
1ectory results from excessive and bur-
donsome taxation. 1t is snid that one of
The chief causes of the French revolution
was the tax on salt.
Concerning the income tax, the follow
ing arguments in favor OF 1t are offered:
l.. A large proportion of the federal
<0iobursements Is consumed by the PEN
uion department The financial program
for the next year calls for s16O, ,0OO, 900 for
pensions, and the statement has been
made on the basis of previous expendi-
ture that this department will need $780,
100000 to meet all claims liable TO be made
against II. The North gained immensely
BY tho civil war, and it is
certainly admissible that those who
built up large fortunes by the war and by
war measures shall be heavily taxed for
che maintenance of this expensive de-
partmcnt. 1t Is estimated that there are
8,O00 people in this country who hold
property worth S3l, 500, 100000. IL this
class should be taxed i'm proportion to
their ability to pay, and also the protec-
tion which they receive from the
government, the treasury might be
Allied and at the same time the
millions who feel the burden OF excessive
taxation would be rid OF the great cause
for complaint. Under our present faulty
oystem IL Is an easy matter for the man
whose Investment in bonds yields him
annually five or ten thousand dollars to
escape taxation, whereas the poor mans
cottage is considered q legitimate basis
for taxation.
2. For thirty years the government has
been organized and its financial policy di-
nected towards the promotion and build
ing up Of the material interests of the
northern and eastern sections of our coun-
try. As consequence these parts have
been benefited by the tariff, whereas the
southern and western portions have
been unduly burdened. The time
for equalization has come, and the instru-
mout destined 10 accomplish this desirable
result n the Income Tax. Says the
Atlanta Constitution: "This whole peo-
pie will rejoice when we inaugurate just
eystem Of taxation, under which every
citizen will pay his proportionate share"
3. An income tax was assessed during
Che civil war, and II could now be levied
with msrvcllously increased benefit so far
- swelling the treasury Is concerned
because Of the rapid increase in wealth since
The war. In 1890 the wealth OF the United
States was estimated at s61, ,s5e 0oo, 900. We
od6ed % 100000 every week 10 our wealth
from 1870 TO 1890. While our population
increased % per cent. our wealth increased
nearly n per cent. 40 that today the
wealth Of the United States exceeds that
q Great Britain by nearly $4,000 900.
The data furnished by the treasury de-
Dnrtment shows that during the ten years
~ Income tax WAS in existence the re-
oDlD1s IN round numbers were s3i7. 900 900.
- ~ the receipts aggregated ga, 100000.
unvfng bri<ny considered the reasons
o11uoo1 n favor Of this measure, Il re-