Mexico weekly ledger., 1898-10-20

q world Of lying has been done. / have
no doubt whatever that Mr.. Fleming
can rest hin fame as q prophet, il he III
ambitious in that direction, upon hiR
prediction that ''as the masses beccms|
better educated to their rights, and al
they discover the disguised forms under
which the inequalities Of taxation arc
foisted upon them and p~erpetuated to
their disadvantage, they will demand q
change" They will demand it dead
sure pop, and, what is more. they will
get 1t.
Following up that philosophic preface
and coming directly to the income ta,s
Mr.. Fleming said
"There is no perfect system, but If a
hundred representative thinkers Of to-
day on governmental and economic sub.
jects were asked what kind Of q tar
most nearly approaches perfection it Is
no rash statement TO affirm that the con-
sensus Of opinion would be overwhelm-
ingly in favor Of a properly adjusted in
come tai. Especially would this con-
sensus be strong IL we should eliminate
those who agree with MI. George in his
poyel theory Of q single tax ON land,
which, after all, is not intended %
much as q means Of raising revenue as
q means for O more eve distribution OF
wealth.
Two Glasses OF Taxation.
ssLet us examine the subject briefly:
All taxes may for general purposes be
| divided into two c-lasses-taxes based on
possession Of property and taxes basel
| on consumption Of commodities. Tho
former tax falls Immediately OF tho
possessor or owner. The latter usually
falls on the consumer IN the form OF
| the additional price Of the commodity.
| An increase Of the tax On . piece Of
land tends to lower its market value,
because the net gains from it will be
less. An increase Of the tax ON q box OF
| cigars tends to raise its market value,
because the final purchaser seeks no
money gains from it. but q qualification
inseparable from the use or consumption
Of the cigars. In this regard there il no
difference between an import duty, such
as we have in our tariff system, and an
excise duty, such as we have in our In
terna1 revenue system. 81
"But in another respect there is q
vast difference between these dutiea
The full amount Of the internal tax
taken ont Of the pockets Of the oonsunt-
ers goes into the government treasury,
but the tariff tax yields to the govern
ment treasury only such sums al are
paid upon articles actually imported,
while the domestic manufacturers Ur
producers Of the same class Of articles
put into their own pockets the Increased
prices they are enabled to charge COIL
sumers by reason Of that tariff tax. An
excise tax goes wholly to the govern
ment. An import tax goes partly to the
government and partly to protected
classes.
"It is manifest that any system Of
taxation based wholly on consumption,
embracing, as it may, both import du.
ties and excise duties, is lacking in the
elements of justice and equality. Under
such a system wealth necessarily escapes
its due proportion Of the burden OF sup
porting the government from which IL
receives protection and on which it de-
ponds for opportunity to increase i'll
gains. On this particular point the Hon
John Sherman, in o speech before ths
senate in 1871, in opposition to the re
peal Of the income tax, made the fol
lowing explicit deliverance:
"'If you leave your system OF taxa
ton to rest solely upon consumption
without any tax upon property or in
come, You do make an unequal and I'm
just system
Tax on Property.
"It should be observed further that /.
tax on property as such, while general
ly equitable, may sometimes involv
serious inequalities. Assessed valuation
does not always vary in %accordanc
with net profits. Besides, under q sys
tenn of mere property taxation, man,
persons of large earning capacity, bn
, who make no accommodations, woul
escape altogether. Why should doctor
lawyer, railroad president, lecturer
opera singer OF congressman having a
income Of 30, 900 per annum, whtc
: represents q capitalization OF 500, 90
: at 8 per cent, pay NJ tax on his gains
while the property owner must pa
taxes on his property, which taxes ,nui
: generally come out Of the gains OF tn
, property? But our purpose at present
. not 90 much to contrast the income ia
: with the property tax as with the to
ON consumption, that being the onl
kind of q tax now levied in the Unite
States.
: "Adam Smith, the father OF moder
political economy, enunciated the COZ
!, rect principle when he wrote:
"'The subjects Of every state ougt
, to contribute toward the support Of ii
: government as nearly as possible in pr
o portion to their respective abilities
: that is, in proportion to the revenr
!. which they respectively enjoy under ii
y protection Of the state
= "When q citizen pays taxes aocor,
: ing to his income, from whatever sour
: IL may be derived, he Is giving suppo
. 10 his government and receiving prote
: ton from It in o manner more near
= approaching perfection than under az
other plan yet devised. II his gains &
!. GREASE, his tax increases, and we'll
y may, because he is better able to pay ]
% Il his gains decrease, 30 does his to:
!. and fortunately for him because he
j. less able to pay it.
h No Unfair Discrimination.
d "The income tax should be laid up
g. tents, profits and wages-in fact, up'
e. all gains. without regard to the sour
d from whence they come, it within &
l. constitutional limits Of the taxing 20,
re- er. Neither the landlord, nor the me-
st chant, nor the professional man, n
the laboying man has any right to a
N the government to bestow tts benef
upon him at the exclusive cost Of OF
al ers. Some minimum amount to GOV
th reasonable average necessities should
u exempted, but the excess OF gains abo
y that minimum ought to contribute
to share. A large exemption ia Justly op
ct 10 the charge Of class legislation. TT
Oh American manhood does not AJAX for
Advertised Letters.
'n. List of letters remaining In the P
ul Office at Mexico, Mo-, for the We
d. ending Oct. 20, 1898, which IL !
of called for In thirty days will be sen