FOREST TAXATION IN THE UNITED STATES 9 
tax—acts as a discouragement to forest growing and may in some 
cases affect adversely the utilization of mature forests. As already 
pointed out, it was this presumption, commonly entertained, which 
chiefly induced Congress to provide for the present investigation. 
THE IDEAL TAX SYSTEM 
The ideal tax system is that which accomplishes, in a workable and 
not too expensive fashion, an equitable distribution of the cost of 
government among all persons having an interest in the government. 
To be ideal the tax system must first of all be workable. A tax system 
which is incapable of effective administration, which is uncertain as to 
the amount of the taxpayer’s liability, or which encourages evasion 
and fraud must be rejected, whatever other virtues it may claim. 
Secondly, the operation of the system must not be too expensive in 
comparison with the revenue received. Thirdly, the system must 
accomplish an equitable distribution of the cost of government. An 
equitable distribution is obtained when the current general conscience 
of the community approves of such distribution as being fair and just, 
after careful consideration of the relative abilities of the taxpayers, 
the benefits which they receive from government, and all other per- 
tinent factors. Lastly, the contributions to the cost of government 
must be made by all persons who have an interest in the government— 
in general, by all citizens and by those foreigners who receive protec- 
tion to person or property from the government in question. 
Special favors in the way of reduction or remission of taxes are 
repugnant to the ideal tax system as defined above; they may be 
justified, if ever, only by a resulting benefit to all the people of the 
jurisdiction granting the special favor. Special favors, in general, 
have a far-reaching effect in directing industry into uneconomic 
channels. Any industry which cannot bear its fair share of the costs 
of government has a heavy burden of proof to show that it is not a 
parasite upon the other industries of the community. Itis not enough 
to show that the industry seeking special consideration is meritorious; 
has great public value. The same may be said of all legitimate indus- 
tries, and it is not a sound principle of taxation that the relative con- 
tributions of different interests shall be graded inversely according to 
an estimate of their respective services to the public. Any tax con- 
cession granted to one interest necessitates an increased tax burden 
upon all other interests. For example, it may be urged with truth 
that the forests are of enormous public usefulness. But cannot the 
same be said of the farms, the factories, the stores? Shall all other 
necessary industries be penalized in order that forestry may be pro- 
moted? This point might perhaps warrant further elaboration were 
it not for the fact that in any case little aid toward the solution of 
the forest-tax problem is to be looked for from this direction. It is 
significant that, of the many States which have sought to promote 
forestry by special tax favors, none has accomplished any result of 
importance. 
FOREST TAXATION IN THE IDEAL TAX SYSTEM 
The ideal method of taxing forests is that which will require a just 
contribution from forest owners, while being of such form as will not 
place a special obstacle (beyond what any just tax must impose) in 
