And yet Mr. Carey's name, more than that of any other citizen of the United States, is identified with a system of raising revenue which is based exclusively on indirect taxation.
Mr. Henry George, in one of his essays, also thus forcibly makes clear a leading characteristic of the indirect taxes levied by the Federal Government: "Propose," he says, "to abolish, or even reduce, one of these taxes, and Washington will be filled with lobbyists begging and working for its extension. What does this mean? It means that these taxes yield revenue to private parties as well as to the Government."
Carlyle was not far out of the way in characterizing legislators who advocate indirect taxation as having a purpose, "that those who are not hungry should suppress those who are. The pigs are to die—i. e., be subject to taxation—no conceivable help for that; but we, by God's blessing, will at least keep down their squealing!"
The question of the relative merits of the two systems of taxation under consideration, has long been since the days of Jeremy Bentham a subject of discussion, with a trend of popular sentiment unmistakably in favor of indirect, or it should rather be said in opposition to direct taxation.[1]
What satisfactory explanation can be given for a conclusion so clearly adverse to public interest? John Stuart Mill has attempted it as follows: "The feeling is not grounded on the merits of the case, and is of a puerile kind. An Englishman dislikes not so much the payment as the act of payment. He dislikes seeing the face of the tax collector and being subjected to his peremptory demand. Perhaps, too, the money which he is required to pay directly out of his pocket is the only taxation which he is quite sure that he pays at all. That a tax of two shillings per pound on tea, or of three shillings per bottle on wine, raises the price of each pound of tea and bottle of wine which he consumes by that and more than that amount can not
- ↑ "We find, as the result of our examination and contrast, that direct taxation is, in every essential feature, vastly superior to our present method; that the former accords with justice, economy, and all the other requirements of a sound policy; while indirect taxation violates every principle on which legislation should be based. It must be owned, however, that notwithstanding the weighty objections to the one and the economy and perfect fairness of the other, there are few of our citizens who are desirous of making the proposed change. Direct taxation is a phrase that grates on the nerves of all. Men start at its sound as though it was a portent of evil; something which had impressed them with deadly fear. They seem to regard it as deeply imbued with the spirit of tyranny, to say the least, if not as the most forbidding impersonation of that monster. So unpopular is this method of taxation, that an aspirant for public station or honors would as soon think of committing high treason as propose or advocate it; and if his ambition were bounded by the present, he would be right, for he could not more effectually destroy his popularity."—Treatise on Political Economy, by George Opdyke.
