The independent., 1903-05-14
PROGRESSIVE INDIRECT TAxATIoN

hoohLocAP1 lNDAhECA AhhASicf
written for Henry George Edition
Of The independently
1t has been the fond dream of econ
omists to institute tax that should
be progressive in it's character, or so
graduated that the wealthy should
pay greater percentage than those
less able; especially has this thought
been uppermost in the minds of repre-
sentatives of the people In times when
they have by revolution thrown Off
the burden Of an oppressive monarchi-
cal form of government and In the
reconstruction times which followed
have looked round for just sources OF
revenue. But history shows that thus
far such efforts have resulted In fail
ure. The late Prof. Francis A. Walk
er in summing up an examination in
to the history of unsuccessful at
tempts made by various nations to
apply progressive income taxes dis
misses the subject In these words:
political Economy, sec. 602.) IT the
highest human wisdom joined with
perfect disinterestedness should frame
scheme of contribution, must be-
lieye that the progressive principle
must in some degree be admitted,
though by what means or In what de-
gree | am at loss to suggest"
Walker was right in his dim per-
ception Of justice, though he looked
for 1t in the wrong direction. 1t Is
not to be found in an income tax, but
is to be found in tax on land or a
rent for natural resources.
The late David A. Wells, noted
writer on taxation and member OF
committee appointed by Lincoln dur
ing the war period to devise methods
of raising revenue, throws some ligh.
on the subject in his History Of Recent
Economic Changes, page SO. Speaking
Of the cost of raising wheat on the
that on farms of different sizes wheat
could be raised at the following scale
OF expense:
On ranches of 1000 acres, 99R cents
per 100 pounds.
On ranches of 1000 acres, IS cents
per 100 pounds.
On ranches of 5000 acres, IS cents
per 100 pounds
On ranches of $4,000 acres, 60 cents
per 100 pounds.
On ranches Of 10000 acres, so cents
| per 100 pounds.
On ranches of $4,000 acres, 40 cents
per 100 pounds.
| Supposing these estimates to be even
approximately correct, it would show
that these large bodies of land were
worth more per acre than smaller
ones, a fact that would become ap-
| parent if the same competition existed
for large privileges in land as for
smaller; and II these progressive val
ues could be taken in taxation it
would form the price of land and be
the progressive tax looked for. The
same thing may be seen in the value
of railway franchises; they are not
to be valued per mile nor yet by their
perishable property, but by the num-
ber and wealth of the populations
which they connect. The way in
which tax on land might become an
indirect tax and, therefore, allowable
under the constitution Is only clearl J
seen by first comprehending that the
| dliu VI ouCi tdA 10 dI tuC toWhCl-
ship of the privilege in land.
! Chief Justice Fuller, In his state
ment as to the constitutionality OF
the income tax of 1894, said that from
time to time there had been intima.
tions that there might be tax which
while not a direct tax nor yet in
cluded under the words duties, i'm
/ posts or excises, would be constltu.
tional, yet he goes on to say thai
through more than 100 years Of ma.
tional life such tax had as yet re
mained undiscovered, although The
stress of particular necessity had In
vited the closest scrutiny into sources
of revenue. He further describes al
indirect tax to be one that Is pait
primarily by persons who can shift
J the burden upon others. or take
! which there is no legal compulsion {,
pay. This astute mind blinded b!
, the institution OF the private owner
ship Of land or hindered by the er
mine which he wore, feared to utte
that, which might be construed to b
revolutionary. Evidently there wa