Lower coast gazette., 1909-09-18
SATURDAY, SEPTEMBER 18, 1909.
The Incidence of Taxation.

HULL ODoNS
securing government revenues by tariff taxes
and 90 so far as to say it were better II we hao
universal free trade and direct taxation on the
people for all the expenses of the' government
whether state or national. The freedom OF the
American colonies secured by their success IN
the revolutionary war, necessarily developed IN
each Of the states a spirit of state pride and one
of the profoundest questions that came up De-
fore the people was as to how money should be
secured to pay the expenses OF the naVloha'
government, it having undertaken to carry on
all of the foreign relations of the states OF the
federal union, to transport the mails, to pay the
expenses of the army and navy, to properly
fortify the coast. Some of the most refractory
states about entering into this agreement ana
a~ccepting the federal constitution were IN the
north and conspicuous among them was 'he
state of New York, that was generally the last
in asserting to any proposition up tor JOINT con-
sideration. It was agreed to secure the bulk OF
the funds needed for the support OF the natlonal
government by the sale OF the public lanos'
which were conceded to the federal government
by the various states, by such revenues as
might be derived from a properly constructed
tariff on imports, the constitution inhlbitlng a
duty on exports, and it was further agreed that
anv additional funds needed should be collected
from the states in proportion to their popula-
ton. Later on, when funds were needed this
latter method was adopted and some funds COL
lected, but it was never found very practicable.
Tie public lands of the country have been sold,
or granted as bounties to soldiers and to rail-
way companies, and the revenues from that
direction were soon exhausted and the main de-
pendence of the country was upon a tarlH on
imports As is generally known, many coun-
tries levy a duty on exports as we'll as imports
and require this double revenue in order to sup
= 66asHsthemselves. The fathers of this republic
aS4SfeeId that there should be no export duties
and agreed that there should be import duties,
and in order to secure the necessary revenue
our imports were studied and tariff taxes laid
thereon as was determined by congress.
All government is one of force, expressed in
the current laws, whether it be the government
of the family, of the state, or of the nation,
and government necessarily interiors with the
physical and intellectual rights of the people,
who are bound to make concessions along these
lines for the common good. It was a brilliant
political move that led the fathers of our gov
eminent to prohibit export taxes and to author
ize import taxes, as from the point Of view then
taken, any man could take part not, as ne
pleased, in paying import taxes. The farmer
who practically lived on his own lands and or
his own resources and bought very few goods
felt that he paid taxes to no one, the tax falling
IN imports and he could avoid them with hi
homespun clothing and his home grown food
Up to 1850 this method Of carrying on tn
national government was one of the creates
successes known to modern civilization. Witt
the advent of the civil war increased taxation
became necessary and the unpleasant and diff
cult constitutional method of direct taxation 0
the people in proportion to their population wa
decided to be inexpedient and a lot of war take
were evolved, including then an indome tax
since decided unconstitutional, an excise tax 0
whiskey and beer, stamp tax on various docl
ments and percentage taxes on business tran!
actions in proportion to their magnitude an
from these so,called internal revenue taxes, in
mense amounts Of money were realized and tt
finances Of the federal government were du
strengthened. The judgment Of the nation W;
thus declared in favor of tariff taxation on in
ports and against direct taxation of the Poop
Of thu. states, excepting as reached circuitous
through the so-called excise taxes. These latt
taXefs Have been practically abandoned by tt
government, excepting as applied to malt al
spurious liquors. The great amount of reven
secured from these products was too temptil
to be sacrificed by any scruples as to the pr
priety of collecting war taxes in time of peat
The increasing expenses of the general COVER
ment consumed all the revenues and we fl
ourselves now with an elaborate tariff syste
exploited in every direction for the purpose
securing adequate revenues and they are til
secured for the purpose and incidentally p
tecting American manufactures, which lat
policy seems intrinsically a sound one and
~practiced by every civilized state, England
copied, but which was ~practiced by England
long as it was to her interest to do so. All
about free trade England and the desiraDility
M lY<.Eht ill.,, =, ~ o.ovo