Evening journal., 1913-02-10


for a man to increase his income in
order to pay a tax. he would increase
it anyhow tax or no tax.
while not open 10 the same OBJ
lection as the taxes have before dis
cussed, and while it's tendency is in
the general direction of democracy,
nevertheless. the income tax is not
based on any fundamental idea of
justice
1T may be true that most large
incomes result from the fact that tho
government helps some and handi-
caps others, but II by no means fol-
lows that all incomes of the same.
size indicate equal advantages obtain
ed through the government The fact
OF the matter is. that the inequality
here is very great
Compare, for example, the income
Of a great singer like Garuso. which
comes to him entirely as the result
OF his being able TO please the public.
with that OF the president OF a street
railroad company who has acquired a
large block of stock In return for
his services IN securing "A favorable
franchise
In the one case the government
has not helped in the slightest degree
and In the other case the size Of the
/ income may be due entirely to the
terms OF the franchise, and therefore
60 government favoritism.
1T is true, ! have taken extreme
cases but between these there are all
degrees, and the income tax makes no
distinction.
''In other words the income tax
does not distinguish between earned
and unearned incomes.
The income tax is proposal to
/ deliberately do a slight injustice to
the rich to partly offset the great in
/ justice which the government now
does TO the poor
There are certain practical difficult
ties which would show themselves II Il
were attempted to enforce an income
/ tax. Many men could reinvest the
/ greater part of their incomes in their
! business In such a way that the in
come would not appear to be any
/ greater than that used for househould
/ expenses, and those who could do this
would dodge the tax and thus gain an
advantage over those who could not.
I'm general, the successful specula-
tor who is able to outwit his victims
! (those whose losses go 70 make up his
profts) would certainly use this same
cunning 10 deceive the tax collector,
and so Il is doubtful II this tax could
be collected with any approach to
equity
Lastly, why should we advocate a
tax not based on fundamental idea
of justice until we see II there be not
some kind OF taxation which is absO-
lutely just?
Taxation Of Property.
"The idea OF taxing property, that is
of requiring a man TO contribute to the
support Of the government in proper
ton to the property he owns, grew
from an honest. though clumsy effort
to make those who are most able, con-
tribute most to the support of the gov
ernment.
Great numbers Of perfectly honest
people have this idea now and actu-
ally believe that the taxation OF prop
erty without classification does really
place the burden OF supporting the
government upon those most able tC
bear it. The idea, however Is insist
ed on by many who are by no meant
honest, and who know the real truth
at least so far as II affects theii
schemes These interested person.
use every means in their power to be-
fog and obscure the truth. They are
loud In their cries for equalization
and for reforms in methods Of collec.
tion, but are very careful to avoid tho
subject Of classification.
Before taking up the all-importani
subject OF classification of property
for taxation, / would like to point out
that the idea Of taxating a man be-
cause he is rich, Is not good public
policy.
ANY community taxing a man heav-
lily on his wealth would not only tend
10 drive prosperous men into commu-
mites which tax them less heavily, but
would place difficulties in the way OF
its own members becoming prosper
GUS
up TO this point have only pointed
out the Disadvantages and injustice OF
the systems Of taxation with which
have dealt, and I would not be sur
prised If the reader should ask wheth-
er there is any system which is moi
open to some serious objection.
l"There is such a system and that i
comVlends itself at once to those com
mon sense perceptions OF equity
known as business principles, ! pro
pose to show but to do this, there
must be i'm the readers mind a cleal
understanding of the classification o
property for taxation and of the all
5 Important reasons for such classiiica
3 ton.
Classification OF Property for Taxa
tiOn.
D unfortunately our laws and Gus
{ toms recognize as property two thing
= Numerically opposite in their econ
omic character. These are
r Il. Actual wealth. that is, thing
: produced by labor from the material
h freely offered by nature. and
L "2 Privilege. that is, legal powe
+ Chase on military force) TO take with
out recompense the earnings Of in
s dustry.
e Examples OF the first class ar
\ houses, stores, cattle, clothing, foot
is factories. machinery and vehicles G
e transportation. All of these thing
= minister directly 20 human needs an
ie the more Of them any community ha
Ie the more prosperous II is.
The ownership of these things
D. by common consent as we'll as by La
10 vested primarily in those who hav
l. produced them. This principle
5. recognized by our builders lien law
IS A carpenter until he is paid is pa'
N owner Of the house he helps
'e build.
Ie The ownership Of any OF thes