Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-12-26

and uses the article taxed pays a higher
price for what he buys.
In the past our duties have been levied
upon the protective theory. but we are
about entering upon the era of Il tariff
for revenue only and whatever may
have been formerly the case it certainly
will he true under that system that the
consumer pays the duty. To impose II
duty of 10 cents per pound upon tea or
coffee. or any article not produced in
this country. must add exactly that much
to its price to the consumer.
The same thing is true of internal rev.
enuc taxes. These are applied uniformly
to the production of certain articles and
they increase the cost by exactly the
amount of the duty.
CONSUMER PAYS THE TAX.
Without going into any questions Of
nice refinement, looking at this subject
in a broad and comprehensive way, 1t
must be evident that the taxes from Gus
toms and internal revenue are in the
main paid by those who finally consume
the articles taxed. 1t must also be evil
dent that while the wealthy classes CON
sumo more of these articles in proper
ton to number than the poorer classes.
. sun NHdA N'ii'tiAHNl'l H''S Nv ~ az
in proportion to their means. In other
words. these taxes upon expenditures
rest much more heavily upon the poor
than upon the rich.
While it may be difficult to determine
exactly who does pay the taxes which
support our national government, it is
not difficult to point out who does not
pay them.
Tho 1ncann1n, a. Dr J,1A, InanI -,
have kept his millions largely invested
in valuable real estate in the city of
New York. That property pays nothing
directly or indirectly to the support OF
the nation.
Years ago a picturesque figure in the
financial ccnters of New York was Rus
sell Sage, II man of most exemplary but
most abstemious habits. whose personal
expenses We're trifing. He left a fortune
Of many millions which had contributed
but an insignificant amount. if anything,
to the national income.
WEALTHY PEOPLE ESCAPE.
These examples, which might be am
plilied indefinitely If time permitted
serve to illustrate my meaning. The
whole point is this: To-day the wealth
of this country pays comparatively moth
Ing in proportion to its ability toward the
maintenance of our national government.
Under the constitution, as a practical
matter it cannot be directly taxed. The
present system Of indirect taxation does
not reach 1t. Undoubtedly sometime
might be done to correct this fault by a
revision of our customs and Internal rev.
cnue taxes. Our excuses and our duties
might be so adjusted as to bear less
h,oyilv unon the "consumption of the
moor man. hlIt they are still A tax on
exncndituro and loav. untaxed that in
came which is NOT So cxnouded. Given
,,,o Incomes of sir,no .ach should 4
who snonds his entire income. nav 100
times as much 10 the maintenance Of our
,ationol existence as T.. who sponds but
Slooo a YEAR
The only certain way i'm which IN.
rich. csneciallv tn. very rich. can be
made tn contribute dutv ,o tho national
oxpensos is bv the inposltlon of an ~.
come fax. and my first pronosltion is
that the federal Government should h,
vested with authority to 1sa this form
Of taxation. 1t may not he desirable tc
$ use II. II may be found impracticabl
Y to use it. But the government should a
$ least possess the power to compel tn,
Il wealth of this land to contributes NOR,
4 than 1t now does to the support of tn,
nation.
.
40
MY second proposition is that. whcthe
y this form of taxation is or is not desir
able in ordinary times, the United state
should possess it in time of emergency
y 1t may not be generally understood that
except for some thirty years out of tn,
Il century and "a quarter of our existence
c men have supposed that the government
u'' posS'ss '"'S po"'l VI 'aN"''on' D"'
l. made to enact an income tax measure
y and such a tax would undoubtedly hav
n been laid had not the war ended. a
le that time many of the men who frame,
n the constitution were alive. The debate
leading up to the ratification of tina
& document by the several States wer
t, fresh in the minds of all. Yet was thcr
m no dissent from the proposition that III
" government might legally impose thi
N tax.
in When the crisis Of the Civil War wa
I. upon us an income tax was levied an,
e. many millions of dollars were collecte
n for our national defense through tina
er kind Of taxation. 1t was not until 1Sg
Sc that the Supreme Court declared the In
Do come tax in violation of the constitution
al The strength of a nation to-day do
ponds largely upon its ability to rails
money. II * Ia me a monstrous prone