Letters on Taxation
Letter 4
Edwin Burgess
[1859]
In the Constitution of Wisconsin, sec. 8, art. 1, it says "The
Rule of Taxation shall be Uniform" upon such property as the
Legislature shall prescribe.
Now I am totally at a loss to see the "Uniformity" of
Taxation under our present law. If it is meant to exempt a certain
value of every one's property, why exempt horses under two years old,
mules and asses under eighteen months old, and sheep and hogs under
six months old? For according to this rule, one farmer may own a
thousand dollars of such property, or any amount, but if his neighbour
has a like amount, no matter how little older, he must pay double what
he would pay were all taxed according to the value of their property.
This, instead of being uniform, is burdensome and oppressive to one,
while favouring the exemption of the other.
Do not suppose for a moment that I wish to make any point against
farmers, or any other class whatever, for I would not tax any personal
property, or product of industry in any form, but the land alone
according to its market value, irrespective of all improvements.
But it would really be difficult to show how the mechanic is
correspondingly favoured in exemptions; for he may have six month's
fuel and provisions, if he should be fortunate enough to own as much,
but if he should be owed as much, though it were his all, and he could
not collect it before making his returns, then he must return it to be
taxed, except he owes as much, because those who owed him were either
unable or unwilling to pay him; in either case he must pay more taxes,
and thus exempt others, or perjure himself to avoid the imposition.
According to art.9, sec. 3 of the assessment law of Wisconsin,
household and kitchen furniture, beds and bedding, or other personal
property not exceeding two hundred dollars in value, is exempt from
taxes. Now a widower being the head of a family, of course would have
two hundred dollars of such property exempt; and a widow being the
head of a family would be entitled to a like exemption; and I suppose
a bachelor or maiden would be entitled to a like exemption each. But
if they should commit matrimony, would they be entitled to a like
exemption, or only two hundred dollars for each family; and if not,
where is the uniformity of the tax? The same question will apply to
the six months' provisions and fuel exempted by art.10, sec.3.
In art.14, sec.3, it says each person shall be entitled to exemption
on other personal property, excepting moneys and credits, and articles
enumerated in sec.8, to any amount not exceeding one hundred dollars;
so that a person may have exempt from taxes a hundred dollar watch
chain, but not a five dollar watch , or a melodeon, or a piano. Had
our legislature no taste for music or mechanics? You may select for
exemption a double horse wagon for work, but not a single one for
pleasure. Is there one mechanic in a hundred who owns one hundred
dollars beyond the furniture and other property that he could collect,
to put into such property as is exempted? And if he cannot collect,
then his credits must be taxed to diminish the taxes of those who are
rich enough to own the exempted property. But why the articles
enumerated should be exempt, and others taxed; I think it would a
puzzle a Wisconsin legislator to tell; or how taxation can be uniform
with special exemption.
Again, how credit can be construed to mean property, except by the
fist of the law, I am at a loss to determine. What is credit but
expectation of property, which is in the possession of another ( if
existing at all ), and is already taxed in the possession of the
buyer? But when you tax credits it leads to double taxation, first for
the property bought, and second for the credit or expectation also.
For example, suppose one person buys a house and lot of another , for
one thousand dollars cash, then the cash is taxed to the seller, and
the property to the buyer; but if the buyer buys the house and lot on
credit, and loans his money for interest, then the house and lot is
taxed to the buyer and the money to the borrower, and the credit to
the seller for the property and the loaner of the money; and the same
property may be sold over and over again on credit; and the same money
be loaned, over and over again, and remain unpaid; and the credit be
taxed for each sale or loan every time.
But it will be said that our somewhat recent law for exempting an
amount of personal property from tax equal to the debts of the debtor,
avoids the double taxation. In many cases this is true, but not in
all, for if you owe for real estate and have no personal property to
be exempt for what you owe, then the real estate will be taxed, and
the credits also. And even if you owe for provisions, which you have
consumed, and have nothing with which to pay, still the credit will be
taxed, though no property exists to represent it. And if the house
should be burnt, and the land washed away, still the credits will be
taxed while the wealth is unmade which must cancel the credit.
And I contend that exempting an amount of property from taxes equal
to what we owe is worse than taxing all property to those in
possession, for then it would be the interest of the debtor to pay up,
to save the taxes; which would benefit the creditor pecuniarly, and
the debtor, morally, at least. And it also avoids the double taxation,
and taxing for what has ceased to exist as property, and makes it out
interest to trade for ready pay instead of credit, and gives no
premium on perjury, debt, and swindling, and is less costly,
extra-judicial, and inquisitorial; still, it is very inferior to ad
valorem land tax, which, while avoiding all the evils peculiar to
taxing personal property and credits, makes land monopoly
unprofitable, and keeps the land at the lowest price, and labour at
the highest, while taxing personal property and credits both make land
high and labour low.
Doubtless, this law for taxing money and credits was made to tax the
loaner, and exempt the borrower. But while it does not put it within
the means of the borrowers to get cheap or free land, it not only
falls of its object, but absolutely increases the evil which it was
intended to diminish. For, the tax for credit as well as money
diminishes the land tax and thus raises the price of land and produce,
rent, interest, and usury; and so will our poll tax, our taxes on
personal property, and duties on imports. Thus are we fighting effects
and feeding causes continually, but I trust we shall soon try to see
if we cannot better prevent the evils of which we so justly complain
by removing their causes entirely.
THE TEMPERANCE LAND REFORMER
Air- "Fine Old English Gentleman."
Oh, that a man into his mouth should put a deadly foe,
To steal away his health and wealth, and work disease and woe;
To drown his reason, love and worth, and desolate his home,
And leave his family in want, unheeded and alone;
Like a poor lost slave of appetite, a whisky- sucking drone.
Then cast away the maddening draught, which thou can'st not control;
So that thou may'st not perish by the desolating bowl,
But live a useful, honest life, sustain thy moral health:
Be sure thy own, not other's toil, supplies thy store of wealth:
Like a thorough Son of Temperance who scorns to drink by stealth.
But whilst thou fightest the effect, strive to remove the cause,
That made thee sacrifice thy health, and violate its laws;
Say, was it not exhausting toil of body or of brain,
Or indolence, that made thee drink to rouse thy sinking frame:
Caused by the robbers of the land, who riot in thy shame?
Then let the land and man be free, so that excessive toil
The workers need no longer do, for drones to reap the spoil;
That all by honest industry may earn their daily bread,
So they may know that they have been by their own labour fed;
And thus a temperate, honest life by every one be led.
INTRODUCTION
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