Taxation

“ And the amount of the taxation may be determined by the value of the property, or its use, or its capacity, or its productiveness. It may touch business in the almost infinite forms in which it is conducted, in professions, in commerce, in manufactures, and in transportation. Unless restrained by provisions of the Federal Constitution, the power of the State as to the mode, form, and extent of taxation is unlimited, where the subjects to which it applies are within her jurisdiction. ”

“ The power of taxation, however vast in its character and searching in its extent, is necessarily limited to subjects within the jurisdiction of the State. These subjects are persons, property, and business. Whatever form taxation may assume, whether as duties, imposts, excises, or licenses, it must relate to one of these subjects. It is not possible to conceive of any other, though as applied to them, the taxation may be exercised in a great variety of ways. It may touch property in every shape, in its natural condition, in its manufactured form, and in its various transmutations. ”

“ We shall then have that mode of taxation which is the most easy, and least oppressive to the people, because it will be exercised by those who are acquainted with their condition and circumstances. This, sir, is the great object we wish to secure—that our people should be taxed by those who have a fellow-feeling for them. I think I can venture to assert that the general government will lay such taxes as are the easiest and the most productive in the collection. ”

“ The answer is, taxation. In what respect shall it be not greater than the rate assessed upon other capital? We see that Congress had in its mind an assessment, a rate of assessment, and a valuation; and, taking all these together, the taxation on these shares was not to be greater than on other moneyed capital.
'When taxes have been properly decided upon, an assessment may become an indispensable proceeding in the establishment of any individual charge, against either person or property. ”

“ Let us take as a unit every male of the revision, (i. e., the official unit of taxation) ; let us then compare with one another the assessments levied upon both exceptional classes of absolute proprietors and donees, on the one hand, and let us again compare with each other the assessments levied upon the remaining classes of the peasantry. We shall see that every male is taxed on the whole at an approximately uniform rate. This is the usual system of taxation in every primitive state, where land is in abundance and human labor is the main source of wealth. ”

“ The power of taxation, indispensable to the existence of every civilized government, is exercised upon the assumption of an equivalent rendered to the taxpayer in the protection of his person and property, in adding to the value of such property, or in the creation and maintenance of public conveniences in which he shares,-such, for instance, as roads, bridges, sidewalks, pavements, and schools for the education of his children. ”

“ Another objection to the system of taxation by the State is, that the rolling-stock, capital stock, and franchise, are personal property, and that this, with all other personal property, has a local situs at the principal place of business of the corporation, and can be taxed by no other county, city, or town, but the one where it is so situated. ”

“ We think that the system in regard to taxation, including what should be taxed, the rates, and the exemptions from taxation, was intended to be an independent one, to abolish existing impositions or exemptions, and to form a complete system of itself. ”

“ A tax is laid by the general government on all the money on hand or on deposit of every citizen of the government at a given date. Such taxation prevails in many of the states. The government has, under its taxing power, the right to lay such a tax. ”

“ Before we proceed to examine this argument, and to subject it to the test of the constitution, we must be permitted to bestow a few considerations on the nature and extent of this original right of taxation, which is acknowledged to remain with the states. It is admitted, that the power of taxing the people and their property is essential to the very existence of government, and may be legitimately exercised on the objects, to which it is applicable, to the utmost extent, to which the government may choose to carry it. ”

“ All State taxation which does not impair the agent's efficiency in the discharge of his duties to the government has been sustained when challenged, and a tax upon his property generally has not been regarded as beyond the power of a State to impose. ”

“ Direct and indirect taxation.—For convenience of study, taxes are spoken of as either direct or indirect; that is, a tax may be levied upon one whose property or earnings must be reduced by the amount of the tax, or a tax may be levied upon one whose property when sold, or whose service when rendered to another, will be worth as much more as the burden of the tax he has paid. ”

“ A tax is a payment exacted by authority from part of the community for the benefit of the whole. From whom, and in what proportion such payment shall be required, and to what uses it shall be applied, those only are to judge to whom government is intruded. In the British dominion taxes are apportioned, levied, and appropriated by the states assembled in parliament.
Of every empire all the subordinate communities are liable to taxation, because they all share the benefits of government, and therefore ought all to furnish their proportion of the expence. ”

“ But when once a government has assumed its basis, to select and tax special articles from either of the other classes, is double taxation. For example, if the system be established on the basis of Income, and his just proportion on that scale has been already drawn from every one, to step into the field of Consumption, and tax special articles in that, as broadcloth or homespun, wine or whiskey, a coach or a wagon, is doubly taxing the same article. ”

“ 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. ”

“ The administration of taxation should be economical, certain, and uniform. Whatever taxes are adopted, whether on property or income, whether at a proportional or a progressive rate, their justice and expediency depend largely on their administration. ”

“ Were all taxes placed upon land values, irrespective of improvements, the scheme of taxation would be so simple and clear, and public attention would be so directed to it, that the valuation for taxation could and would be made with the same certainty as when a real estate agent determines the price a seller can get for a lot. ”

“ By the power to lay and collect taxes, they may proceed to direct taxation on every individual, either by a capitation tax on their heads, or an assessment on their property. By this part of the section, therefore, the government has power to lay what duties they please on goods imported ”

“ But uniformity in this connection is only another name for equality, for the provision is for 'levying a tax by valuation, so that every person and corporation shall pay a tax in proportion to the value of his or her property.' The value of the property being ascertained, the same rate of taxation must be laid upon all. ”

“ If a government were to command that its taxables should be listed at one-fourth their full value, and that a tax of $1 on the $100 should be levied on the values so listed, it would in substance have enacted a law for the taxation of its property, at full value, at 25 cents on each $100, and no amount of figuring can make out of it anything less or anything more. ”

“ It has long been acknowledged as an axiomatic truth that taxation is meant only for the purposes of revenue. It will not for a moment be said, your Petitioners humbly think, that the proposed tax is meant for any such purpose. The proposed taxation is avowedly meant to drive the Indian out of the Colony after he has finished his indenture. ”

“ Sufficient revenue to pay all the expenses of the Federal Government, economically administered, including pensions, interest and principal of the public debt, can be got under our present system of taxation from custom-house taxes on fewer imported articles, bearing heaviest on articles of luxury, and bearing lightest on articles of necessity. ”

“ The disposition of wealth effected by its exercise or relinquishment at death is one form of the enjoyment of wealth and is an appropriate subject of taxation. The power to tax 'is an incident of sovereignty, and is co-extensive with that to which it is an incident. All subjects over which the sovereign power of a State extends, are objects of taxation'. ”

“ A combination among a few of the strongest States might, by a little management, throw the whole burthen of taxation upon the others, by selecting only such subjects of taxation as they themselves did not possess, or which they possessed only to a comparatively small extent. ”

“ It is a right that is recognized and openly acted upon in the world of business and of property, that has to be considered and taken into account by financiers and statesmen in the collection of revenue and the imposition of taxes. It is the general exercise of this right that makes the incidence of taxation a study for experts. Roughly its result is, the weakest pays. ”

“ If, with such high duties as to prohibit the articles, our chief source of revenue will be wiped off, and the consequence may, nay, must be, direct taxation. If low, it will only exhibit, without gratifying, a resentment, and the consumers of these articles, the yeomanry of this country, will have to pay the tax. ”

“ In such a case it is immaterial to inquire whether the tax is, in its nature or by its operation, a direct or an indirect tax; for the instrumentalities of the states-among which, as is well settled, are municipal corporations, exercising powers and holding property for the benefit of the public-are not subjects of national taxation in any form or for any purpose, while the property of private corporations and of individuals is subject to taxation by the general government for national purposes. ”

“ With no exceptional nor unusual expenditures, the oppressive burdens of taxation can be lessened by such a modification of our revenue laws as will be consistent with the public faith and the legitimate and necessary wants of the Government. ”

“ The great economical question concerning taxation is how to secure the greatest degree of protection to persons and property at the least possible expense to the persons protected. Its decision depends partly upon the expensiveness of the government agencies, and partly upon the methods of levying and collecting the taxes. ”

“ But taxation is not so much concerned with the refinements of title as it is with actual command over the property taxed-the actual benefit for which the tax is paid. If a man directed his bank to pay over income as received to a servant or friend, until further orders, no one would doubt that he could be taxed upon the amounts so paid. ”

“ It was likewise shown that the indirect and furtive private taxation, far exceeds in amount the whole sum of the public taxation of the country—rendering, of course, the burden of the public taxes so much the more onerous, and their collection more difficult. ”

“ In considering whether we are to regard an income tax as 'direct' or otherwise, it will, in my opinion, serve no useful purpose, at this late period of our political history, to seek to ascertain the meaning of the word 'direct' in the constitution by resorting to the theoretical opinions on taxation found in the writings of some economists prior to the adoption of the constitution or since. ”

“ If it should have a general power of taxation, they could select the most proper objects, and distribute the taxes in such a manner as that they should fall in a due degree on every member of the community They will be limited to fix the proportion of each state, and they must raise it in the most convenient and satisfactory manner to the public. ”

“ It is these classes of expenditures which are increasing most rapidly.
Revenue.—If local government is to possess real autonomy, it must possess independent sources of revenue. Certain classes of taxation cannot be employed by local governments. Such, for example, are the income and general excise taxes; import and export duties; taxes on bequests and inheritance. These forms of taxation are difficult to collect by local authorities; and if practice is not uniform throughout the State individuals and industries will escape taxation by shifting from one locality to another. ”

“ The ordinance in each case is sought to be sustained as a system of non-discriminatory taxation of various businesses, professions, and vocations, including the distribution of books for which contributions are asked, for the sole purpose of raising revenue. ”

“ The taxation more or less goes in many countries to feed cutthroats, loafers, gamblers, blacklegs, &c. Many of the people who have immigrated to this Territory come from countries where they have been ground down by taxation. We are more lightly taxed than are the people in any other country, so far as I know.
But what I dislike most is, that when the officer requests the taxes, some will lie from morning until night to escape paying them. If any man ought of right to be exempted from paying his taxes, let him refer his case to the County Court and have his taxes remitted. ”