raised by it. In this country land taxes are commonly laid by value. This is subject to some objections. In order to insure equality, it is necessary, in a new and rapidly improving country, that there should be frequent valuations, and this requires a great official force and involves heavy expense. The apportionment of this expense among towns or other small divisions. of territory, the people of which are allowed to choose the officers, reconciles them to the burden, and, in many of the states, a new valuation is made annually." An objection, theoretically more serious, is that a tax by assessed value is often (where the land is poor and unproductive, or where it is wild and uncultivated) a tax which is paid from capital instead of from revenue. A tax to be thus paid cannot long continue, and is seldom to be purposely laid; but, in particular instances, almost any tax will be such. And in this country, where a considerable portion of the community invest in lands with a view to profit from the rise in value, unproductive and uncultivated lands cannot be exempted from taxation because of the hardships of individual cases, without exempting a large portion. of the wealth of the state now legitimately invested where it is insuring large profits to the owner.

Taxes on Houses. These, except where the houses are treated as appurtenances to lands, have been measured by rents, and sometimes by hearths and windows. A hearth tax was obnoxious, because, among other reasons, in involved inquisitorial visits of officers to inspect rooms; and both hearth and window taxes tended to limit among the poor the use of these conveniences, so important not only to comfort, but to health. Both are now abolished in England.

11 Bl. Com., 307; 1 Broom & Hadley's Com., 368, 372. See Queen v. Commissioners of Land Tax, 2 El. & Bl., 694.

2 In the light of the experience we have of the American system, it is interesting to note what is said by Adam Smith: “A land tax assessed according to a general survey and valuation, how equal soever it may be at first, must, in the course of a very moderate period of time, become unequal. To prevent its becoming so would require the continual and painful attention of government to all the variations in the state and produce of every different farm in the country," . . "an attention so unsuitable to the nature of government, that it is not likely to be of long continuance, and which, if it is continued, will probably, in the long run, occasion much more trouble and vexation than it can possibly bring relief to the contributors." Wealth of Nations, b. v, ch. 2, pt. 2.

Taxes on Income. These may be on all incomes, or on all with such exemption as will enable the tax payer, in a frugal manner, to support himself and his family. The latter is the course usually adopted, and, in some cases, incomes in excess of the exemption have been taxed a larger percentage as they increased in amount. The reasons which favor this discrimination would also justify a heavier proportionate tax on the thrifty classes in other cases; and the principle once admitted, there is no reason but its own discretion why the legislature should stop short of imposing the whole burden of government on the few who exhibit most energy, enterprise and thrift. Such a discrimination is a penalty on the possession of these qualities. But any income tax is also objectionable, because it is inquisitorial, and because it teaches the people evasion and fraud. No means at the command of the government have ever enabled it to arrive with anything like accuracy at the incomes of its citizens, and they resist its inquisitions in all practical modes, not only because they desire to avoid as far as possible the public burdens which they are certain are not to be equally imposed, but also because they are not willing that their private affairs and the measure of their prosperity should be exposed to the public. The taxes imposed on incomes by the United States during and immediately following the late war were escaped by a large proportion of those who should have paid them, and the assessors' returns were a wholly inadequate indication of the annual private revenue of the country. In the United States, also, such a tax is unequal, because those holding lands for the rise in value escape it altogether — at least until they sell, though their actual increase in wealth may be great and sure.

Taxes on Employments. A tax on the privilege of carrying on a business or employment will commonly be imposed in the form of an excise tax on the license to pursue the employment; and this may be a specific sum, or a sum whose amount is reg

1 See New Orleans v. Fourchy, 30 La An., 910.

2 Gibbon refers to torture employed under the Empire to ascertain the profits of employments. See Decline and Fall, ch. 17. Its employment upon the Jews in England is a familiar fact in history.

The states may tax income except as to any part thereof derived from nontaxable securities. Opinions of Justices, 53 N. H., 634.

ulated by the business done or income or profits earned. Sometimes small license fees are required, mainly for the purpose of regulation; but in other cases substantial taxes are demanded, because the persons upon whom they are laid would otherwise escape taxation in the main, if not entirely. Instances of hawkers, peddlers, auctioneers, etc., will readily occur to the mind. The form of a license, though not a necessary, is a convenient, form for such a tax to assume, because it then becomes a condition to entering upon the business or employment, and is collected without difficulty. But it is equally competent to impose and collect the tax by the usual methods.1

Taxes on the Carriage of Property. There are various methods of imposing these; as by licensing the business, by taxing the vehicles employed, by tonnage duties, etc. As to tonnage duties, the powers of the states are restricted, as is elsewhere shown.

Taxes on the Wages of Labor. These, in a country where wages are only sufficient to supply the absolute needs of life, would necessarily fall on the employer; but when the accumulations of labor are relied upon for a competency, and even for wealth, the burden might be more felt by the laborer. modern times such taxes have been unusual.

In

Taxes on Servants, Horses, Dogs, Carriages, etc. These are intended as taxes on luxury and ostentation, and can seldom prove burdensome. Each person assesses himself in determin

In Ould v. Richmond, 23 Grat., 464, 468, a city tax on lawyers was contested for the reason, among others, that the persons taxed held a license from the state to practice law, and the municipal tax went to nullify it. Anderson, J., says: "Whilst a lawyer's license authorizes him to practice law in any court of the commonwealth, and it is not in the power of any municipality to deprive him of that right, or to take away his license, it is a civil right and privilege to which are attached valuable immunities and pecuniary advantages, and is a fair subject of taxation by the state, or by a municipal corporation where he resides and enjoys the privilege. It is a vested civil right; yet it is as properly a subject of taxation as property to which a man has a vested right. I cannot perceive that there would not be as much reason for saying that a man's property is not taxable, because he has a vested right in it, as for saying that a lawyer's license is not taxable because he has a vested right to it." See post, ch. XVIII.

ing how many he will employ or own. The same may be said of taxes on plate and articles of display, when taxed directly.

Taxes on the Interest of Money. These are objectionable for the same reasons that apply to income taxes. They lead to the same evasions, and to some others which it is impossible to check or circumvent. They are seldom levied eo nomine.

Taxes on Dividends are more easily collected and do not usually involve inquisitorial proceedings. Dividends come from corporations whose proceedings are usually semi-public, and while the privacy of individuals is not invaded, neither are the demands of the government liable to serious evasions. This is a common method of raising revenue.

Taxes on Legacies and Inheritances. These are laid in diminution of a new capital which now comes to the hands of parties on the death of former owners; and in theory they should not be burdensome. In fact, however, except when they are upon gifts by will to others than the immediate family, or are on collateral inheritances, they are likely to be felt severely. The property held by the head of the family is usually, for all purposes of supplying comforts and enjoyments, the property of all the family; and a tax upon their succession to it on his death comes in a time of unusual necessary disbursements to increase the embarrassments and burdens which accompany the loss of their main reliance and support. Sometimes these taxes are levied on testamentary gifts and collateral successions only.

66

1 Whether the employees of a railroad company are servants" within a revenue law, see Attorney-General v. Railway Co., 2 H. & C., 792.

2 In Eyre v. Jacobs, 14 Grat., 422, a tax on collateral inheritances was objected to as opposed to the requirement that taxation of property should be uniform. But the tax was sustained as not being a tax on property, but on the privilege of succeeding to the inheritance. The tax is spoken of in the case by Lee, J., as one of great antiquity, imposed upon the Romans as early as the days of the Emperor Augustus, and often in early times by nations of Europe, as well as in modern times. See, also, Williams' Case, 3 Bland, Ch., 186, 259. A similar objection to such a tax in Tyson v. State, 28 Md., 577, was also overruled.

A succession tax is not a direct tax upon the land taken by descent, but is an impost upon the devolution of the estate, or the right to become benefi

Taxes on Sales, Bills of Exchange, Gold and Silver Bullion, etc. These when laid on the instruments by means of which business is transacted, and imposed in the form of stamp duties, have the high recommendation that the cost of collection is but a small percentage of the sum realized, and few evasions of payment are practicable. They are besides paid in small. sums, as business transactions take place from time to time, and are therefore not much felt. Indeed, on many accounts they are the least objectionable taxes that can be levied; and the repeal of the most of those which were levied by federal authority in this country is probably due to the strong interest in favor of taxation calculated to aid particular branches of trade. Notes issued with the intent that they shall circulate as currency are also sometimes taxed, with or without stamps.'

Taxes on Newspapers. These would be likely to be imposed in the form of stamp taxes. The objections are very obvious, and were thought to be conclusive in this country even when the need of revenue was the greatest.

Taxes on Legal Process. These are usually imposed with a view to adjusting, on an equitable basis, as between suitors and the public, the expenses of the administration of justice. They may be imposed as stamp fees on process, fees for permission to enter a suit, etc.?

cially entitled thereto, or to the income thereof. Scholey v. Rew, 23 Wall., 331. A legacy tax imposed by the United States is not payable by one whose domicile is, in a foreign country. United States v. Hunewell, 13 Fed. Rep., 617. A devisee of real estate is liable to the succession tax, though in the division of the estate he receives the value of the land in other property. Scholey v. Reed, 23 Wall., 331. Further, as to legacy and succession taxes, see Wright v. Blakeslee, 101 U. S., 174; Hellman v. United States, 15 Blatch., 13; United States v. Allen, 9 Ben., 154; Same v. Tappan, 10 Ben., 284; Same v. New York Life, etc., Co., 9 Ben., 413; Same v. Hart, 4 Fed. Rep., 292; Same v. Townsend, 8 Fed. Rep., 306; Same v. Hazard, 8 Fed. Rep., 380; Same v. Brice, 8 Fed. Rep., 381; Same v. Leverich, 9 Fed. Rep., 586; Clapp v. Mason, 94 U. S., 589; Mason v. Sargent, 104 U. S., 689. A tax on collateral inheritances is payable by a corporation, and an orphan asylum may be liable for it though its property is exempt from taxation. v. Commonwealth, 27 Grat., 110.

Miller

1 As to what is taxable as "circulation" under the federal revenue laws, see U. S. v. Wilson, 106 U. S., 620; In re Aldrich, 16 Fed. Rep., 369.

2 There are express constitutional provisions for such taxation in Georgia, Nebraska, Nevada and Wisconsin. That they may be laid without any such