The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-04-13

cent acceptance n permanent part
of the fiscal system OF Great Britain
and liz adoption In France. Germany
and other countries in Europe and
: elsewhere.
For Justice. as Plato long age set
forth. Is the soul of the republic. And
Democratic republic cannot long en-.
dure IL the masses of the. people feel
that Its rich men are not contribVt-
ing their fair share to the mainte-
nance Of the government. Such a
condition to-day exists among our
selves Go among the mechanics in
our great cities or among the farm
ers1 in the country. and you will hear
the same discontinued protest. The
national tariff imposes n dispropor-
tionatcty heavy tax on the cxpcndi-
turcs Of the poor; the state and local
systems Of taxation fail to reach the
personal property Of tho RICH; shah
they not then ic supplemented by an
! income tax rs an adjunct to our tax
system which shall require every one
to pay I'm proportion to his ability
| with the exemption OF a reasonable
minimum for the requisite means OF
! subsistence? / have no doubt that
| with his great sympathy with the in
/ arttculate masses OF the people and
| his devotion to their interests Jeffer-
son would have answered this ques-
| ton in the affirmative. Furthermore,
/ there is no blinking the fact that the
I emergence and development OF the IN
| come tax has conceded with the
! spread OF Jeffersonian Democracy
! throughout the world. For this rea-
son I have no doubt that the income
! tax Is inevitable In the original home
of Democracy. The constitutional and
political obstacles which have retard-
! ed the progress of this fiscal reforr,
| amongst ourselves VIII somehow be
/ removed. Our written Constitution
was made for the welfare OF the peo-
| pie. And while IL may delay, 1t can
not prevent the fulfillment of the
| Democratic demand for social and fis-
cal justice.
The large portion of the revenues
| derived from an income tax In the
United States would be secured by
tapping incomes flowing from cor
porations. first, the profits of the
corporation: secondly, the stockhold-
ers' dividends: thirdly, the bondhold-
| ers Interest, and. fourthly, the saa-
ries of officials and employees so
also the salaries of government Off
| Gals could be taxed by requiring the
government to pay over the tax to
the tax commissioners. And In the
same way the government could be
required to pay the tax on incomes
derived from Federal securities. |
need not here go into further details.
1t is enough to say that probably
three-fourths of the entire receipts OF
an income tax In the United States
could he collected by this stoppage-at-
source method. This method cam
not indeed, be applied to incomes de-
rived from individual business or
partnerships. But the British gov
eminent has learned how to get at
the facts in those cases without sub
Jecting individuals to inquisitorial ex-
iamination or without stimulating them
to practice dishonesty. AS to pro-
fessional incomes a large part of them
are derived from corporations. insti-
tutions and government service, ana
are therefore susceptible OF taxation
, by the stoppage- method.
, The rest of them could be dealt with
by following English practice, as In
the case OF business Incomes. Fin
ally. 1t must be borne in mind that
an income tax works better the long
: er II Is in operation.
State and Federal Taxes.
. We may be sure that in dealing
!, with this subject OF taxation Jeffer-
J son would have safeguarded the fiscal
= interests OF the States. Those inter
. ests are to-day IN jeopardy. The
| States grant charters to corporations.
: and the States tax these corporations.
The States provide for the evolution
z OF decedents property, and the States
q levy inheritance taxes. But these le-
Il Ultimate and Invaluable sources OF
d State revenues are menaeed by the
q national government. In 1909 Con
a grees enacted a corporation tax--a
Is tax on the corporate doing of bust.
It ness by State chartered corporations
and the Supreme Court has unani-
= mously declared the law to be consti-
tutional. In the same year there
n was imminent danger OF the enact
70 ment of a national inheritance tax
IS And one may venture to predict thai
n If a national income tax is long de,
n layed national Inheritance tax vii
lie be esta blished. How, then, are oul
~ States to live II Congress invades tn.
sources of supply. OF which hitherto
= the States have enjoyed monopoly
IS And be it remembered that at tn.
l. present time the national finances arr
i in good shape. while many of ou,
s. Ststes-eyen a State SO rich rs New
y York--have the greatest difficulty
o. in Meeting their 4hudgetary require
l. ments.
= The States. indeed. meet with diff
$. hculties enough in dealing with cor
a poration and inheritance taxes evel
le when Congress keeps out of that field
Is IOf the taN- payers nave IL pIpFokIn
~ habit Of escaping these taxes by NOV
y Ing into another States jurisdiction
: >yvitk~utM any other change in. thei
. property or business. TO meet tina
=, difficulty. and to avid the double tax
~ alton which will necessarily result
- from the operation Of both State an
- national corporation. Inheritance an
= income taxes il RAJ suggeste
If 4 all three taxes should be al
le ministered by ult ..4---v...,. govern
10 ment and that the revenues Shout
l. be eauitably apportioned between tn
l. nation and the several States--th
Of States. perhaps. further apportlonin
Sc share of their quota TO localities
d, In our threc-fold system of taxation
y local. State and national--the fsca
l. rights of localities and States shout
TX be carefully guarded against the en-
croachments of their more powerful
y partner. There ID danger that local.
= ties and States will 20 bankrupt |
., all the richest sources OF revenue ar
~ shared or monopolized by the fedora
=. government
N JeTer~on's Americanism.
"A I am sure that this liz good JET
~ fersonian doctrine. And / return t
Jefferson. What ia of immense an
n. abiding inspiration in the man wa
f. his faith in the masses of the people
J. his regard for them, his belief In thci
D wisdom and sense Of right. Az Par
II ton justly says. He had more in hir
20 of that which makes the glory an
o.. ! hone America than apy ofher ly