Tax burden

“ We say we want capital, but if any one accumulate it, or bring it among us, we charge him for it as though we were giving him a privilege. We punish with a tax the man who covers barren fields with ripening grain; we fine him who puts up machinery, and him who drains a swamp. How heavily these taxes burden production only those realize who have attempted to follow our system of taxation through its ramifications, for, as I have before said, the heaviest part of taxation is that which falls in increased prices. ”

“ Contrary to these purposes, numerous tax regulations issued over the last several years have effectively increased tax burdens, impeded economic growth, and saddled American businesses with onerous fines, complicated forms, and frustration. Immediate action is necessary to reduce the burden existing tax regulations impose on American taxpayers and thereby to provide tax relief and useful, simplified tax guidance. ”

“ The tax law--even though we are generating a lot more revenue for the Federal Government, even though we are well over that mean number of 18.2 percent of gross national product, even though we have had jumps in revenue of 11 percent, 9 percent, 15 percent--we actually have a tax law today that is generating more revenue but is also more progressive. High-income individuals are paying more of the tax burden. Low-income people are getting more money back from the Federal Government. ”

“ But the maintenance of the tax upon these useless categories demonstrates the true character of the burden. It is not an exemption tax; it is a helot tax—a badge of serfdom, of slavery, submission to which must produce oppression on one side and on the other a deepening degradation. ”

“ After every change in taxation, competition among bargainers goes on and a new equilibrium of prices results. The citizen who pays a tax into the public treasury is not always the one whose income is reduced in the long run. In most cases the final and regular burden of the tax is distributed over a number of incomes. The passing on of the burden is called the shifting of the tax ”

“ To lighten the burden of taxation is not, in matters of finance, to diminish the taxes, but to assess them better; if lightened, you increase the volume of business by giving it freer play; the individual pays less and the State receives more. This reform, which may seem immense, rests on very simple machinery. Rabourdin regarded the tax on personal property as the most trustworthy representative of general consumption. ”

“ We also know it will create a Tax Code that is taking a lot more money out of Americans who work hard. We happen to believe, on our side of the aisle, we should let Americans keep the money they earn as much as possible, have a fair tax system, and as a result generate a benefit to working Americans by saying: Listen, if you are going to work hard, we are going to give you more money. We are also going to get more revenues, which is the way this has worked out.
Why have we gotten more revenues even though we reduced the tax burden on the American people? ”

“ This decision, in effect, works out a directly opposite result, in relieving the citizens having the greater ability, while the burdens of taxation are made to fall most heavily and oppressively upon those having the least ability. It lightens the burden upon the larger number, in some states subject to the tax, and places it most unequally and disproportionately on the smaller number in other states. ”

“ The distinction between a direct and an indirect burden by way of tax or duty was developed, and it was shown that an income tax laid generally on net incomes, not on income from exportation because of its source or in the way of discrimination, but just as it was laid on other income, and affecting only the net receipts from exportation after all expenses were paid and losses adjusted and the recipient of the income was free to use it as he chose, was only an indirect burden. ”

“ If we tax only the land, and that were the only tax, in a little while every other thing, and the value of every other thing, would adjust itself in relation to that tax, and perfect justice would be the result. That is to say, if it were stable long enough the burden would finally fall upon the right backs in every department. The trouble with taxation is that it is continually changing—not waiting for the adjustment that will naturally follow provided it is stable. ”

“ Income taxes.—A favorite device in some countries, [pg 361] and often advocated in this, is a direct tax upon incomes above a certain amount, graduated so as to give a much larger rate upon large incomes than upon more moderate ones. The most obvious reason for such a distinction against the large incomes is the evident failure of our national system of taxation to distribute the burden according to ability. ”

“ The whole Assessed Taxes, though not avowedly and exclusively a tax on the landed interest, are, practically speaking, and in reality, a burden on them almost entirely; at least they are so much heavier on the landowners than the inhabitants of towns, that the burden is nothing in comparison on urban indwellers. ”

“ The exemption of interstate business from the type of State taxation here involved is now made complete.
A business engaging in activities in two or more States should bear its part of the tax burdens of each. If valid, non-discriminatory taxes imposed in these States create 'multiple' burdens, such 'burdens' result from the political subdivisions created by our form of government. They are the price paid for governmental protection and maintenance in all States where the taxpayer does business. ”

“ Elaborate machinery, designed to bring about a perfect equilibrium between benefit and burden, may at times defeat its aim through its own elaboration. A crippling result of the decision just announced will be to restrict the choice of means within bounds unreasonably narrow. Hereafter in the taxation of business a Legislature will be confined, it seems, to an income or profit tax if it wishes to establish a graduated system proportioning burden to capacity. ”

“ And according as the tax is less directly levied, the greater will be the burden they are subjected to; for besides indemnifying all the other classes who have advanced the tax-money, a further expense must be incurred, in the additional number of persons now necessary to collect it. The natural conclusion we must draw from the theory is, that a tax, directly levied on the neat revenue of the land proprietors, is that which agrees best with reason and justice, and that which bears lightest on the contributors. ”

“ But I have an uncomfortable feeling that this prosperity isn't something on which we can base our hopes for the future. No nation in history has ever survived a tax burden that reached a third of its national income. Today, 37 cents out of every dollar earned in this country is the tax collector's share, and yet our government continues to spend 17 million dollars a day more than the government takes in. We haven't balanced our budget 28 out of the last 34 years. ”

“ This brought me to the conclusion that, “when a reduction of taxation is about to take place, it is exceedingly important that great care and judgment should be exercised in the selection of the tax to be reduced, in order that the maximum of relief may be afforded to the public with the minimum of injury to the revenue.” ”

“ If the Government in such case could consider these gradual accretions to be "Income" and could tax them and the Capital on which they accrue under the pretense that they constituted "Income," must not an absolutely final exhaustion, not merely of the resources of the public, but of the Government itself, become inevitable? Taxation then might not merely be the power to destroy, but be destruction itself. ”

“ To provide that taxation shall fall entirely on income, and not at all on capital, is beyond the power of any system of fiscal arrangements. There is no tax which is not partly paid from what would otherwise have been saved; no tax, the amount of which, if remitted, would be wholly employed in increased expenditure, and no part whatever laid by as an addition to capital. All taxes, therefore, are in some sense partly paid out of capital; and in a poor country it is impossible to impose any tax which will not impede the increase of the national wealth. ”

“ In taxation, the government should study to do away what is obnoxious in its mode of collection, for that does more injury to the subject, in many cases, than an equal sum would do levied in another manner; and when payments are to be made, the mode should be rendered as easy as possible. Every unnecessary trouble should be avoided in collecting a tax. ”

“ It is to be feared, therefore, that the fairness which belongs to the principle of an income-tax can not be made to attach to it in practice. This consideration would lead us to concur in the opinion which, until of late, has usually prevailed—that direct taxes on income should be reserved as an extraordinary resource for great national emergencies, in which the necessity of a large additional revenue overrules all objections. ”

“ We should contend for an income tax not simply for the purpose of raising revenue but for the purpose of framing a revenue system which will distribute the burdens of government between consumption and accumulated wealth, which will enable us to call upon property and wealth not in an unfair and burdensome way but in a just and equitable way to meet their proportionate expenses of the government, for certainly it will be conceded by all that the great expense of government is in the protection of property and of wealth. ”

“ The demand for money to replace the property, which the enemy have destroyed, to repair buildings, and the profits which commerce yields, together with the difficulty of forming new systems of taxation in a country, which has hitherto scarce known a tax, beyond what was necessary for the support of its own frugal governments, renders the collection of a direct tax extremely difficult. ”

“ If renouncing a surplus revenue would enable us to dispense with a tax, we ought to consider the very worst of all our taxes as precisely the one which we are keeping up for the sake of ultimately abolishing taxes not so bad as itself. In a country advancing in wealth, whose increasing revenue gives it the power of ridding itself from time to time of the most inconvenient portions of its taxation, I conceive that the increase of revenue should rather be disposed of by taking off taxes, than by liquidating debt, as long as any very objectionable imposts remain. ”

“ The taxes indeed, besides their great amount, were many of them on necessaries, a kind of tax peculiarly injurious to industry and accumulation. But when the aggregate amount of taxation is very great, it is inevitable that recourse must be had for part of it to taxes of an objectionable character. And any taxes on consumption, when heavy, even if not operating on profits, have something of the same effect, by driving persons of moderate means to live abroad, often taking their capital with them. ”

“ The increasing rate of taxation upon superfluous wealth, is a sacred principle for which every reformer should contend.
But even this is not fortified against evasion, and we need the most efficient tax of all—the progressively accumulating tax on wealth, which will gather a large rental from all the superfluous millions, compelling the holders to use them profitably. A three per cent. tax on all over ten millions would not only enrich the commonwealth, but stimulate industry in millionnaires. How long will the millionnaires be able to defeat such legislation? ”

“ The estimated revenue from these sources was $877,500, affording a small excess over the sum which would be required to pay the interest on the assumed debt. The policy of the measure was discussed in a well-digested and able argument, detailing many motives, in addition to those assigned in his original report, for preferring the system now recommended to accumulated burdens on commerce or to a direct tax on lands.
A new tax is the certain rallying point for all those who are unfriendly to the administration or to the minister by whom it is proposed. ”

“ Treat the deficit as an outlay of capital. Even if the hope of ultimate profit should altogether fail, let us recur to some other tax ... any tax but this, certain that none can operate so fatally on all the other sources of revenue. Letters are the primordia rerum of the commercial world. To tax them at all is condemned by those who are best acquainted with the operations of finance. ”

“ The amount of reduction, as well as the manner of effecting it, are questions of great and general interest, it being essential to industrial enterprise and the public prosperity, as well as the dictate of obvious justice, that the burden of taxation be made to rest as equally as possible upon all classes and all sections and interests of the country. ”

“ I believe our income tax to be entirely inadequate, in the light of the national need and the emergency situation we face. Taxes must be raised to reasonable levels without discouraging enterprise or business expansion. ”

“ It was clear that the Government must have a revenue, and that revenue could only be raised by direct or indirect taxation; and he preferred, under the circumstances of the country, indirect taxes, which the people did not feel, and were not compelled to pay unless they liked; for the poor were not compelled to buy foreign imports, but if they bought them they must pay a tax to government. ”

“ It is one of the open secrets of finance that in almost every system of taxation the indirect overcrow the direct taxes by many millions, and have a knack for levying on the small resources of insignificant persons which direct taxes have never learned. They know how to coax pennies out of poor people whose names have never been on the tax-collector’s books. ”