588 TAXES even in the most civilized countries, precisely those classes who enjoyed the largest revenue, and presumptively were most able to contrib- ute to the support of government, were ex- empted altogether. The modern idea not only accepts this first maxim, but it goes somewhat further in a direction opposite to the practice of former times, and holds that revenue which is only sufficient for the support of the per- son and his family should be regarded as not subject to taxation at all, but the whole bur- den should be levied upon the large revenues. Full effect is seldom given to this idea, but its recognition is seen in the exemption of small incomes when an income tax is laid, and in the exemption of household furniture, tools of trade, &c., when property is taxed by value. While this first maxim is true in a general sense, there are many exceptions to be made to it, and no tax system ever professes to be framed in strict accordance with it. The land owner who voluntarily allows his lands to lie idle and produce no returns, and thus avoids contributing to the common benefit of society, has no claim to exemption ; and as his proper- ty is meanwhile protected by the government, it is only reasonable that he should make due return for this protection. A man possessed of large means may have them invested in a large establishment, fine grounds, elegant col- lections of art, &c., which a moderate income enables him to support ; while another whose whole capital is kept in productive employment may realize no greater income from his com- paratively small means, supplemented by his own labor. Obviously in such cases income could not be a proper standard of taxation as between the two. To render the maxim just in all cases, other than pecuniary returns must be had in view, and the standard of taxation must embrace something besides income. In modern times complicated systems have gener- ally been established in which taxes have been laid on expenditure as well as on income, and to these have been added taxes on the value of property, the purpose being to levy a diversi- ty of taxes which, as they work together, will be likely to result in distributing the burdens of government more equally and justly than any single tax could possibly do. The second maxim is one that should admit of no excep- tion when direct taxes are laid ; but when taxes are indirect, one of their chief advan- tages is supposed to be that they are paid by the people without their being aware at the time that they are paying taxes at all, or at least without reflection on their part that what they pay as price includes a tax. The third maxim is sometimes had in view in the im- position of taxes in kind, but it must be very rare indeed that this method of obtaining a revenue can be either convenient to the peo- ple or economical to the government. Only when extraordinary circumstances preclude a ready exchange of the products of the coun- try for money, such as for a time existed while the southern states of the Union were in insurrection against the government, could taxes in kind be preferable either to the tax payers or to the government. The exchange of property for money is always better done by individuals than by the government, and the government consults the interests of the people by making taxes payable at the sea- son of the year when the harvests have gen- erally been gathered, and when it is pre- sumed the tax payers can most conveniently meet the demand. The fourth maxim is often violated by large and needless accumulations in the public treasury, which are impolitic for the further reason that they tend to extrav- agance and corruption and invite peculation. One important measure which governments adopt has express reference to this maxim, viz., the warehousing system, under which the importer, instead of being compelled to pay the customs duties on the arrival of the goods, and to charge his customers with the consequent loss of interest until sales are made, is permitted to leave them in store, and to pay the duties when the goods are withdrawn for sale. Mr. Walker's supplementary maxim is had in view in all well regulated governments. Spirituous and fermented liquors and tobacco are usually made to pay heavy taxes, while breadstuffs are exempt, or only taxed as a part of the general property of the country by value; and at the same time perhaps license taxes will be imposed upon dealers in spirits and tobacco, and also upon the keepers of billiard tables and places of amusement. The taxes which have been laid at different times have been almost infinite in variety, depending sometimes main- ly on considerations of policy, while at others the necessities of government have compelled it to make use of every available means of ex- tracting money from the people. One of the earliest taxes was perhaps a capitation tax, but this can seldom be reasonably fair or equal, because it can take no account of the differ- ences in condition, resources, or income of the persons taxed. The land tax was also an early device, and the feudal services easily slid into a burden of this character. A land tax as a part of a system of taxes may be a just tax, and by itself may not be to unequal or unjust as would at first be supposed. Land is the most available resource for direct taxation, and in this country land is found in the hands of so large a portion of the people that the states are enabled to raise the greater part of their revenues from this source without exciting any general feeling of discontent. Land taxes may be measured by area, which, except in the case of assessments for some local purposes, must always be unequal, or they may be measured by rents or by value. A house tax is common in other countries, and was formerly measured by windows or hearths ; but as the adoption of either standard tended to diminish the num- ber of the convenience which was the measure of the tax, the rent or rental value is generally
