The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-04-13

ent law is much more equitable to indus
trial corporations and is certainly easier
of Interpretation. It was shown to us
that il number Of counties suits had
been decided under the old revenue law
which upheld the contention that the cor
poration section 50 machinery act should
pay tax on its full capital stock and also
that the individual stockholders, (section
II, machinery act) should list their shares
and pay taxes on them,
An examination of our county records
would astonish YOU In 1898 the amount
of stock in Incorporated companies own
ed by citizens of New Hanover county and
listed for taxation was $195, 425
In 1891 the amount had fallen TO S10,-
200. In 1899 it had risen again to SITS
035. And this fuctuation in spite of the
fact that the number of corporations of
all kinds had wonderfully increased
Under the law as it is at present the
stakeholder of a corporation like the Del
gado Mills, for instance. would be greatly
benefited. Under the old law the stock
holders in this mill who live in Will
mington would have been required to
list their stock for taxation in Whining
ton and pay city taxes on it. The cor
poration would also have been required
if the law had been enforced, to pay
taxes on its capital stock sAs it will De
now the corporation will pay tax on the
value of it's capital stock in the county
where it is located and the stockholders
are relieved from any liability for further
taxation.
If there is anything oppressive or bur-
densome in the law it has not yet been
pointed out.
A GRADUATED TAX.
These taxes complete the list of those
levied under schedule A. of the revenue
act. The next Schedule is "A and in
cludes a graduated inheritance tax and
an income tax of / per cent on all in
comes over 81 900. The graduated in
come tax, which was first inserted in the
tax laws of the State in 1888, and was in
the 1899 law was omitted. The wisdom
of this involves the discussion of prin-
ciple of taxation which has been the sub
ject of many lengthy controversies.
doubt very much whether any one is in
terested enough in the subject to patient
~ listen to dissertation on the subject
Of graduated taxation, but as, in a pre-
vious meeting, it was made to appear
that no one but a full-fedged socialist
could advocate any such doctrine, and as
/ seem to be given the credit for discoy
ering and inserting this pernicious doe
trine, / beg you will bear with me for
few moments while | endeavor to pre-
sent the other side of the argument.
John Stuart Mills Principles of Poll
tical Economy was issued in 184S and
President Hadley of Yale College a few
months ago when writing an introduction
to a reprint of this celebrated work,
commenced his introduction with the
statement that there are very few scien-
tific books whose permanent place in lit
erature seems so we'll established as that
Of John Stuart Mills Principles of Poll
teal Economy" and he concludes the in
PRODUCTION after discussing the work of
Mill in connection with more recent
writer's with the following: "Neverthe-
less there is no book by any of these
younger men which can be said to have
displaced Mill. No modern writer on
economies has either Mills repose or
Mills sureness of touch, and for that
larger number of readers who prefer to
tread the old paths until they are sure
which of the new ones will lead them to
their destination; who want the conclu-
sions of the fathers rather than the spec
ulations of the sons-Mill's Principles
Of Political Economy" still holds its place
of authority.
Mill in Chapter II Of Book v treating
ION the General Principles of Taxation
writes as follows
'tAs a government ought to make no
distinction of persons or classes IN the
strength of their claim on II. whatever
sacrifices it requires from them should
be made to bear as nearly as possible
with the same pressure upon all; which,
it must be observed, is the mode hy
which least sacrifice is occasioned On the
whole If any one bears less than his
share of the burden, some other person
must suffer more than his share, and TIE
alienation to the one is not, OF S1S
average, so great a good to him, as the
increased pressure upon the other Is an
evil. Equality of taxation, therefore, as
a maxim of politics, means equality OF
sacrifice. 1t means apportioning the CON
tribution of each person towards the OK"
penses of government, so that he shall
feel neither more nor less inconvenience
from his share of payment than every
other person experiences from his. This
standard. like the standards of perfection,
cannot be completely realized, but the
first object in every practical discussion
should be to know what perfection is.
3
There is absolutely no basis for the
statement that progressive taxation is
only advocated by few socialists and
any one who rests under this delusion is
ignorant Of facts. Secretary Fessenden
in his report as Secretary of the Treas
ury made this statement: The adon-
ton of a scale augmenting the rate OF
taxation upon incomes as they rise in
amount, although unequal in one sense,
cannot be considered oppressive or I'M
just, inasmuch as the ability TO pay in
creases in much more than arithmetieal
proportion as the amount of income OK
ceeds the limit of reasonable necessity"
A progressive income tax was also levied
by the first Congress of the Confederate
States, no exemption being allowed until
in 1864 salaries of 1000 and less were
exempted.
In the proposed graduated income tax
the idea of confiscation could hardly be
said to have had a place. 1t is a fact
easily verified by a simple calculation
that the proposed rate Of tax increasing
by arithmetical progression while the
amount of income increased by geome-
tricaI progression, would not have
amounted to 10 per cent until the annual