VIII. TAXATION OF FORESTS 



The subject of forest taxation is primarily one of public policy; 

 the attitude of government toward the forest business. But since 

 the basis of equitable taxation of forests must be supplied by forest 

 valuation a brief treatment of this subject is necessary. 



a. Taxation is for public good, to collect money for public 

 expenses. There are three fundamental principles apparent in all 

 taxation except punitive forms which have no place here : 



1. All people are asked to share in proportion as they are able 

 to pay. 



2. Taxation should be no more irksome or offensive than is 

 necessary, indirect taxation, revenue, tariff, etc. 



3. Taxation should not interfere or injure useful or necessary 

 business. While rarely expressed in just this way, the many modi- 

 fications of the methods of taxation to suit different kinds of busi- 

 ness were based on this principle fully as much as on the difficulty 

 of finding a satisfactory basis., -r" 



Even in the United States we have taxes of various kinds : or- 

 dinary property tax for house, farm, valuables, etc. ; income tax, 

 national, and also for railways by states, poll tax or head tax, "road 

 tax" to be worked out or paid for, tariff duties, internal revenues, 

 licenses to do business, special taxes, like present war tax, and other 

 forms. 



Taxes are gathered by United States authorities for the na- 

 tional government and by local authorities for town, county and 

 state. 



b. In ordinary taxation of real estate in the United States we 

 have to distinguish between assessment and rate. 



i. The assessment sets a value on the property. It usually 

 takes the ordinary sale or market value, it may take the entire value 

 or only a certain, more or less uncertain fraction. This latter con- 

 dition is not always fixed by law and even where it is, it is com- 

 monly modified in practice and gives the assessor a chance to favor 

 certain persons or properties. It is clear that this local agent, an 

 ordinary elective officer, without special training, experience or other 

 qualities, can modify the amount of taxes paid on any particular 

 property and in this way he becomes the most important part in the 

 entire tax system. 



