Mexico weekly ledger., 1898-10-20

On uonlxO ~. ~ II o DUuEO0 ~ 6K0tAACA~
tion that the pending amendment re-
duces the limit from "a, 600, asprovided
in the Law Of 1894, down to %, 600.
"Nor should we look with favor upon
o progressive graduated income tax
which raises the rate with Increasing
amounts OF income. Such a provision is
no part Of q just system Of taxation. It
must rather rest its excuse on a differ
emit plea altogether-namely, the cues
tionable policy Of checking the individ-
nal accumulation Of wealth and leveling
down the fortunes Of the rich by statu-
tory enaotments-a subject not now un-
der consideration. There would seem to
be, on principle. no stronger reason for
raising the rate Of the income tax as
the income increases than for raising
the rate Of the property tax as the prop
erty value increases.
"The fear Of the rich that the power
to levy an income tax, IL confirmed and
secured to congress, would be used to
confiscate their fortunes is not we'll
grounded. Among a free and educated
people like ours the u OF Justice is
strong. Besides, our daily history shows
that wealth is abundantly able to take
care of itself at the ballot box or else
where in this country.
"If the rich would Voluntarily as
sumo their share of public burdens they
would accomplish much toward coun-
teracting certain vicious tendencies Of
the day. Such a course, in the long
reach of events, would be far wiser than
seeking by legislative or judicial action
to shift those burdens upon shoulders
already weighted down.
Prices Undisturbed.
SIT is well worthy Of note that a tax
ON incomes has this striking advantage
over q tax ON commodities that are
bought and sold-namely, its rate can
be raised or lowered to meet exigencies
Of revenue without appreciably disturb.
ing prices. Change eve so little the rate
Of your tariff or excise tax and immedi-
ately there is futtefing Of prices in
the market, business is upset and specu-
latiou becomes rife, with its attendant
evils; but q change in the tax rate on
incomes could produce nc such result.
The pulse of commercial life would beat
on with normal stroke.
"Again, the low cost of collecting an
income tax in connection with our pres.
| emit excise system must commend it te
| our favorable consideration. According
to the highest official authority, the cost
OF collecting the income tax in 1866 was
less than . per cent, being lower thar
the cost Of collecting any tax then exist
ing except that on banks, which wa
paid directly at tho treasury.
Income Tax Desirable.
"There are in the United States con
ditions now existing and soon to be in
tensifed which make a properly adjust
ed income tax peculiarly desirable. w
find ourselves at present struggling IN
der o tariff law carrying q higher aver
age rate Of duties than any law ever be
fore enacted. No better proof could b
given that even the chairman Of tn
committee on ways and means [Mr
Dingley1 recognizes that his law Of 1889
has about reached the limit Of endur
anoe than the fact that he has brough
In the pending bill to raise the war rev
enue entirely from internal taxes in
stead Of increasing or extending tarif
taxes. It would certainly have been wise
and more patriotic to make foreigner
nay (?) the extra millions than to tax
them out of the pockets Of q W pee
ple. Clearly some insuperable obstacl
stood in his way.
"The fact is, our manufactures ar
fast ~outgrowing our home markets an
are beginning to feel the burden tina
has been long resting on our agricul
tural exporting industries. Natural ez
pansion must be repressed unless on
markets can be extended. Our tart.
rates put around us q wall more or LEI
high, which stands as a barrier agains
foreign trade, for in its last analysis
tax on imports il a tax on exports
Lighter tariff burdens in the Unite
States will be q commercial necessity
the not distant future. Even If til
rates remain the same, Qur revenu.
must relatively decrease, because in
portations must relatively decrease
our home manufacturers supply moi
} and more completely our home market
"But whether this tariff law be rigl
or wrong, good or bad, We can onl
hepe for gradual changes. Such va
} special interests have grown up und'
&c that moderate tariff dutsss -ill I
: doubt continue for generations. In tn
situation it is incumbent upon as to d
wise some additional means Of raisiI
revenue. No better companion tax 4
q moderate tariff could be devised tbs
q fairly adjusted income tax. The tar
: rates could remain stationary at Eeaso
able figures, thus insuring as far as pra
t ticable stability of prices, while the !
come rate could be varied to meet q q
: doiency or a surplus without material
: disturbing prices. Every variati'
9 would measure the willingness or q
willingness Of the we'll to do people
the country to bear additional burde
: Of taxation, and thus we would be
Q sured q strict scrutiny and wise econ
: my in public expenditures.
= Approved by Experience.
y San income tax Is not a mere dIea
. Of the abst1actionist and moralist.
. has BEEN tried. It was first establish
In England in 1898, but was repeal
In 1916. After q suspension Of 20 yea
during which time it received thorou
8 economic discussion, it was re-enact
In 1912, and with slight variations
form has remained to this day q
n the mainstays Of the British exchequ,
This form Of tax exists also in Britt
India, in France, in Germany, in h
sia, in Austria, in Norway. in Swed'
In Switzerland, in Italy, in Spain
fact, in almost every nation Of the c
NJ ilized world.
k $50 that whether we test it by reai
"a or by experience we find that the
come tax, properly adjusted, is the ne
NJ est approach yet made to an ideal ia,