54 POPULAR SCIENCE MONTHLY. 



THE DISTRIBUTION OF TAXES.* 



By EDWARD ATKINSON. 



IN nearly all the discussions upon the subject of taxation which have 

 come to my notice, it is assumed that certain specific taxes fall 

 upon and are borne wholly by one class; other taxes fall upon and 

 are borne by a second class; and so on throughout the list. For in- 

 stance, in the discussion regarding a protective tariff it is held by the 

 advocates of protection that in some cases the imposition of a duty 

 reduces the price of the imported article in the foreign country from 

 which it comes. It is, therefore, held that such a tax may be put upon 

 the foreign producer and is not paid by the domestic consumer. It is 

 held that other duties on other imported articles are added to the cost 

 of importation, then as far as possible added to the price, and are thus 

 distributed in ratio to their consumption. Unless such should be the 

 result of imposing duties on foreign imports, namely, that they may 

 either be borne in the first instance by the foreign producer, or may 

 be distributed on the domestic consumer, there could be no continuous 

 import of any foreign product. Even if it could be proved that some 

 duties are paid by foreign producers, such reduction in price would limit 

 his power of purchase of our domestic goods taken in exchange. 



It is also held that excise taxes on liquors and tobacco must be 

 charged to the cost of production, must be recovered from the sales and 

 are, therefore, distributed in ratio to consumption. It is held by the 

 advocates of what is called the single tax that a tax on rent or rental 

 values will be paid out of the rents accruing to the landlord, and that 

 this tax cannot be distributed by him, but that it simply diminishes 

 his income. It is held that a tax on incomes is paid by those who enjoy 

 the income, diminishing their resources. Finally, it is held that a tax 

 on inheritances and successions is taken out of the property and that it 

 cannot be distributed. 



All these theories, presented in different forms, are and have been 

 subjects of discussion. They have been debated ever since the subject 

 of taxation became in any measure a matter of scientific inquiry. The 

 conclusions reached by different persons or schools of political economy 

 so-called, are as much at variance now as they have ever been. 



I have reached the conclusion that all taxes, wherever placed, how- 

 ever imposed, and through whatever agency collected by the govern- 



* Read before the Section of Economic and Social Science, American Association for the 

 Advancement of Science, June, 1900. 



