STATE GRANGE OF ILLINOIS. 65 



KINDS OK DIUKCT TAXATION. 



Under the head of Direct Tnxalion, we have first the poll-tax, which ia 

 levied upon the theory tlial as every person, however, receives personal 

 protection, and, if need be, care and support from the public autliorities, 

 that, therefore, every person shoulti contribute, not only personal service 

 as soldier in time of war, and in workinj? the public highways, but a fixed 

 annua! sum for the public use. The expense of assessing and collecting a 

 ta.x ofthis kind, and still more I fear an unwillingness to meet the fact of 

 taxation fairly and squarely, make it an unpopular kind of taxation. 



The property tax, or tax on the valuation of real and personal property, 

 is the great source of Slate and local revenue in the United States; tiiough 

 little relied upon in Eunjpe. It ia based on the theory tliat every person 

 should support government expenses in proportion to his financial abil- 

 ity, and that the best measure of his financial ability is the amount of his 

 property. This seems to be a fair theory; but one which we have not 

 yet been able to reduce to a satisfactory practice, inasmuch as a large por- 

 tion of property escapes assessment entirely, and the remainder is gener- 

 ally unequally assessed. 



Although technically not called so in our courts, the income tax ia 

 another form of direct taxation, for which a good deal can be said. It is 

 a tax on the success of the year; and, therefore, involves the least hard- 

 ship. Prof. Walker pronounces it the only perfect standard of taxation. 

 But on account of its inquisitorial character it is alleged, and still 

 more I suspect because it is a tax less easy to shift on to others shoulders 

 than many others, it has been much abused, and finally abolished; 

 although it produced as high as $72,000,000 in 18G6 for our national rev- 

 enue (including taxes on gross receipts, etc.). 



In France, and other European countries, there is another form of 

 direct taxation laiil on the rent or rental value of houses and lands. The 

 local taxation of England and Wales is on that basis. It is assumed that 

 a man will occupy a house proportionate to his circumstances. Taxes 

 on carriages, riding horses, dogs, servants, and the like, are known in 

 England, and may also be regarded as direct taxes; though they would 

 not be so regarded under our Federal laws. 



Direct taxation on lands or the poll is practically prohibited for national 

 purposes in the United States; from the fact that the Constitution requires 

 that "no capitation or other direct tax shall be laid, unless in proportion 

 to the census." Stales are not wealthy in proportion to their population. 

 and Congress will not undertake to face the popular feeling against the 

 immediate obvious inequalities of taxation it would involve; although 

 when the taxation is obscure in its meaning they can impo.se it with 

 impunity. 



KINDS OF INDIRECT TAXATION. 



Indirect taxation comprises taxes levied on consumption mainly, which 

 are paid voluntarily or Ignorantly by the tax-payer. The man who does 



