CHANGES NEEDED.

5

This idea is also based on the tribute theory, and canbe reduced to an absurdity; for only a comparativelysmall sum, say not over a hundred thousand dollarsannually, is necessary to support life in comfort even fora very extravagant man, whilst the ordinary banker couldspare little out of five thousand. The man who has amillion a year, therefore, if he were to pay according tohis ability, should be taxed nine hundred thousand, andthe modest banker should go almost free.

Taxes are collected because when men gather togetherit is found best to divide certain necessary work for thesake of economy and efficiency. It seems, therefore, thatthose who get the most benefit from this work shouldpay proportionally.

Adam Smith was the first to attempt to formulate thetruths upon which a tax system should accordingly bebased. His canons may be described as those of equality,certainty, convenience, and economy. They leave out,however, the element of directness, with the good effectswhich admittedly ensue from every man knowing forwhat he pays his money. They do not sufficiently con-sider the additions to the amount of taxes put on bythose who advance the tax and really act as collectors.The greater the number of hands through which the taxpasses on its way from the real payer to the Government,the greater the number of profits and expenses whichwill be taken out of the sum paid before the Governmentgets it.