Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-01-04
WHAT ARE JUST TAXES.
Question Tried by the Estap's"e"
Canons of Taxation.

To the Editor OF the Dispatch:
Mr.. J. +. Jackson's letter in the DIS
match Of December 18th, on our lax
Laws" is timely, but 1 differ with MN IN
practically every proposition he advances
except when he says that our tax laws
are iniqbltous. lie says that taNation'
though a necessary evil, need not neces-
sarilv be unjust" Now, will MT JACK,
CON kindly explain how a necessary eVli
can be made Just? Can thing be an
evil and lust al the same Tune lSA"'lo.
rightly and justly applied Is not an eVlL l
but q blessing. Government piess-ia
and IN entirely natural growth, requires
revenue for its support has the oioHS
of the nineteenth century brought US no
nearer tine truth than the assertion that
70 support this good thing we call gov
eminent we must apply necessary
evil"? e,,,,oo,
Adam Smith, the father of political
economy. laid down four canons OF TAXA
ton. and in the century that has elapse9
| since his Wealth OF Nations appeared
| no economist has arisen TO dispute those
/ canons. The best tax by Wnich puDhC
revenues can be raised is that when VIII
/ conform most closely to the following con-
! ditiOns. or canons. ..-..
! sible upon prOducticn-sO as least 10 check
! the increase Of the general fund from
which taxes must be paid and the com
munty maintained.
Q Taxes must be easily and cheaply
collected. and fall as directly as may De
upon the ultimate payers-so as 10 take
from the people as little as possible IN ad-
ditIon to what they yield the government.
3. Taxes must be ceTtain-sO as TO give
the least opportunity for tyranny or cor
ruptlon on the part Of officials, and the
least temptation TO law-oreaking ana eva
sion on the part Of taxpayers.
4. Taxes must bear equally-so as TO
give no citizen an advantage or put any
al a disadvantage, as compared with
others.
Let us now consider what form OF taxa
ton best accords with these conditions,
or canons. Whatever II be, IL will evil
IDENTIFY be the best method of raising pub
lie revenues.
/. Effect of taxes on productions:
All taxes must come from the produce
of labor applied 20 land, as there Is no
other source Of wealth than the union OF
human exertion with the materials and
forces of nature. Taxation that lessons
the reward of the producer necessarily
lessons the incentive to production; taxa
ton conditioned upon the act OF produc-
don or the use of any OF the three fac
tors OF production Qand. labor, and capi-
tab. necessarily discourages production.
Thus. taxation that diminishes the earn
nes Of labor or the earnings OF capital
tends TO make the labOrer less industrious
and intelligent, and the capitalist less dis
| uosed TO save wealth and use II as capital
Taxes that fall on the processes OF pro-
! duction interpose an artificial obstacle 10
! the creation of wealth Taxes that TAI
! on labor as IL Is exerted, on wealth as Il
| is used as capital, on land as II Is culu
yated. manlfestly discourage Production
| FAR more than an equal amount OF take
| levied on all laborers, whether they WORK
| 1r play: on all wealth, whether used pro
! ductively or unproductively, or upon al
,and. whether cultivated or held Idle.
NODE OF TAXATION.
The mode of taxation is as important
is the amount. As a small burden badly
placed may distress a horse that coulC
| carry with ease a much larger burder
uroperlv placed, so q people may be I'M
noverished. and their power Of produciqs
yaalth destroyed by taxation that Il
| levied in another way, could be porn'
with ease. Mohammed All put tax OF
date-trees. and the Egyptian feilahs Gu
! down their date-trees; tax OF twice INT
amount was imposed upon the land, date
trees grew again. and the fellahs ceased
their complaints In fact, production Is
| checked by almost all the taxes imposed
/ by modern governments. All taxes o.
manufactures, all taxes on commerce. al
/ taxes on capital, all taxes on improve
| ments. are obstacles 10 production; they
/ are. to all intents and purposes hnes upoi
reduction II man rob hen-roos
] Ia IA he
/ him every year.
NONOPOLIES SHOULD PAY.
Practically the only taxes by which reve
| nue. may be raised without interfering
with production are taxes on monopolies
because the so-called profits of monopolle
! are merely taxes levied on production 70
The benefit Of those who have the specla
monopoly privilege; and 70 tax monopo
| les Is simply to divert into the public trea
surv what producers are obliged 10 pa,
! N any event. for the so-callcd prohts o
monopolies are neither the earnings OF IN
roonopolists nor the interest on their cap
! ital but A toll. or tribute, that Is levie
| ~, the nublic by virtue Of the special priv
| uere nv which the monopoly Is vested J
! nrivate hands. This profit belongs 70 IN
ubljc. because II is created by the puol'
But the profits Of all other monopoiie
! arc trivial as coluINitN WIN INV WI 20 n
10 nv means of economic rent-that Is
! he rental value of land exclusive OF i'm
nToyements NThis value Of land express
ss a monopoly pure and simple and
..., o,,cd for taxation. While the tota
.aive ~ railroad or telegraph line, 0
. ees-plant or water-works, includes mo
nooolv value. II, also, includes the exer
lion Of labor and the expenditure OF car
81. bnt the rental value OF land, or eco
! .e,.,ta r.ot expresses simply the adVau
age Of appropriation. Taxes levied upo
49,. rental value Of land, all Improvement
being exempt could not IN any way chez
o,oSnction. The rental value Of land doe
,,,, e,.,,-ess the reward of production a
1 does the value Of crops, cattle, buildns'
or any personal property and improve
ments il is merely the exchange value
monopoly II is never tne piyuu0 q,
creation OF the individual who owns ,u
and but is the product OF the commuhl
ty; and the community can take II all 10