Outlines of Public Finance | by Merlin Harold Hunter

Interest in fiscal problems has grown rapidly. Twenty-five years ago the subject matter of Public Finance aroused comparatively little discussion. While public expenditures were continually on the increase, wealth and population were increasing more rapidly, so that no greater per capita burden was felt by the citizen. To-day the situation is different. The demands upon the public purse have become so large, because of extended and increased governmental activities, that the burden of taxes has begun to be felt, and in many cases it has begun to cut deeply. A few decades ago, therefore, the principles of Public Finance primarily commanded the interest of public officials, while at present the citizen upon whom the tax burdens fall is also interested. He is beginning to ask what is being done with the funds he has paid in taxes, whether he is paying more than his share, whether the funds are properly handled, and what can be done to secure a better fiscal system.

Title	Outlines of Public Finance
Author	Merlin Harold Hunter
Publisher	Harper & Brothers
Year	1921
Copyright	Copyright, 1921, by Harper & Brothers
Amazon	Outlines of public finance

To Evangeline Groves Hunter My Constant Aid And Inspiration

Preface: Interest in fiscal problems has grown rapidly. Twenty-five years ago the subject matter of Public Finance aroused comparatively little discussion. While public expenditures were continually on the inc...

Chapter I. Introduction: I. Public Finance Has Distinguishing Characteristics. - Man is by nature a social being, and consequently seeks the association of his fellow creatures. As this association develops and becomes more c...

2. The Word "Finance" Has No Definite Meaning: In the English language, at least, no definite meaning is attached to the word finance. A descriptive adjective is often needed to clarify the intended meaning and to avoid ambiguity. Such expres...

3. Public Finance Is a Division of Economics: There has been some discussion as to whether the study of Public Finance properly belongs in the field of Economics. Some writers treat fiscal problems in their works on general economics, while other...

4. Public Finance Is Related to Other Sciences: The subject matter of Public Finance is of such a nature that its study cannot be separated from that of other sciences. Students of the subject must take frequent excursions into the related fields o...

5. Different Methods of Study May Be Used: Public Finance is properly grouped among the social sciences, and, as just indicated, it is closely related to a number of these. Its field is definite enough, however, to admit of independent scienti...

6. The Systematic Study of Fiscal Problems Began in Italy: Public Finance is, at present, usually given a subordinate place in the study of economics. In the order of development, however, the study of Public Finance is much older than that of the general pri...

7. French and German Scholars Followed Italian Writers in the Study of Fiscal Problems: By the latter part of the sixteenth century political organizations had so changed that more attention to fiscal problems became imperative. The disintegration of the feudal regime caused concern to t...

8. English and American Scholars Have Studied Fiscal Problems: The first real interest in fiscal problems shown by English writers was displayed by the translation of Bodin's work into English, at the beginning of the seventeenth century. Some chance reference to...

9. Modern Fiscal Systems Have Well-defined Characteristics: The rapid growth of democracies and constitutionalism has been indicated in the preceding topic. With this growth some well-defined characteristics of fiscal policy have also developed. These have bee...

10. The Interest in Public Finance Is Increasing: Another characteristic of the new era, as marked as those which have just been considered, is the present widespread interest which fiscal considerations have succeeded in arousing. This can be accoun...

11. Public Finance May Be Studied Under Different Heads: The subject of public revenues has always been given a prominent place in fiscal discussions. Early English writers gave little attention to any other part of the science. Germany is the only countr...

12. Supplementary Reading Should Be Followed: It is not intended to give, in the following pages, an exhaustive treatment of all the subjects which will be brought into review. It is hoped that the student may become so interested as to desire ...

Chapter II. Characteristics Of Public Expenditures: 13. Revenue Has Received More Study than Expenditures Only recently do we find fiscal students turning serious attention to the problems of public expenditure. Comparatively little literature can b...

14. Early Writers Did Not Entirely Neglect Public Expenditures: Widespread interest in public expenditure belongs to modern times, yet we do not find its importance entirely ignored, even at the beginning of the study of fiscal problems. Carafa, the statesman of N...

15. Early Systems of Expenditure Were Simple: The methods of expenditure which developed in the early state can scarcely be called systematic, because the expenditures were made in a more or less haphazard fashion. The state, in its early stages ...

16. The Nature of Public Expenditure Differs from Private Expenditure: The expenditure of a state is similar to that of an individual in that both have to do with the giving up of money. The principles which underlie these expenditures, however, are somewhat different. E...

17. The Nature of Expenditures Has Changed with Changes in Forms of Government: It has been noted that in the feudal regime the expenditures of the state were the expenditures of the ruler. This was largely true in all governments before constitutionalism began to grow. An import...

18. The Universal Tendency of Public Expenditures Has Been to Increase: At the close of the eighteenth century it was generally believed that the previous rise in expenditures would cease, and a gradual lowering was even expected and hoped for. That period marked the over...

19. Increase in Public Expenditures Is Not Confined to Any Political Unit: Some conclusions from the study of statistical data will show that the increase in public expenditures has indeed been general - that the increase has not been confined to autocracy or democracy, or t...

20. Expenditures in the United States Show an Upward Trend: A study of expenditures of the United States and its political units will show that everywhere there has been an increase. After a period of war, or some other emergency expenditure, there may be peri...

21. Increasing Expenditures Cannot Be Considered Apart from Other Factors: If the enormous increases in public expenditure in all our governmental bodies had to be borne, with no change in the ability of individuals to Per Capita Expenditure op Cities, 1917 ...

22. Many Causes Are Responsible for the Growth of Public Expenditures: Many factors have contributed to the rapid and continual growth in public expenditures. States are not only undertaking new activities, but are entering into former activities more extensively, or are...

23. Public Expenditures Supply the Less Material Wants: Wants of individuals may be classed as material and immaterial. Of these classes the individual is usually first and most concerned with supplying himself with the material things. Often he does not r...

24. All Public Expenditures Cannot Be Justified: While few would deny the value and necessity of public expenditure, yet the desirability of some uses of public funds may be open to question. To lay down a rule by which the justice of every expendit...

25. Public Expenditures Have Important Economic Effects: No phase of Public Finance, perhaps, has received so much fallacious reasoning as the economic effects of public expenditures. Many early statesmen and writers favored a large expenditure because it p...

26. An Accurate Comparative Study of Expenditures Is Difficult: The comparison of expenditures, which has been made in this chapter, is doubtless not entirely accurate. A number of difficulties arise which make accuracy impossible. One of these difficulties is tha...

27. Attempts to Find a Proper Proportion of Expenditure to National Income Have Failed: Many writers have attempted to ascertain what proportion of the national income should be spent by the state. Some have attempted a percentage relationship, and suggestions have ranged from 5 to 25 pe...

Chapter III. Classification Of Public Expenditures: 28. Many Bases Have Been Used in Attempting to Classify Expenditures The early classifications of expenditures in Italy and France have been noted. These were based upon the objects for which the m...

29. Some Attempts at Classification Have Been Unsatisfactory: At any particular time, especially if the budget system be in use, ordinary and extraordinary expenditures can be rather closely distinguished. The names, in reality, explain themselves. Ordinary expe...

30. The United States Census Bureau Classifies Expenditures: While the census classification is largely for mechanical purposes, American students should be interested in the method of listing and handling the funds. There are two primary classifications, th...

31. Expenditures May Be Divided into Four Classes, According to Benefit Conferred: None of the classifications which have just been noted indicate to any degree the underlying motive in making expenditures. There has been nothing to indicate whether many or a few citizens have been ...

32. Important State Services Are Found in Each Class of Expenditure: It will be interesting to note some activities which fall under each of the above classes, and then consider the more important ones somewhat in detail. A large number fall under expenditure for the c...

33. Reference to Statistics Shows Relative Importance of Principal Expenditures: There is no better way to gain at a glance an idea of the importance of the various classes of expenditures than to refer to statistical tabulations such as those found in Chapter II. Characteristics ...

34. Expenditure for Protection Is an Important Item: A glance at the statistics just given and at those in the preceding chapter will show that the expenses incurred for protection to person and property are large. In the Federal government a large part...

35. States and Cities Make Expenditures for Protection: The giving of internal protection is largely taken care of by the individual states, cities, or other political units. The Federal government, at times, is called upon to give assistance in supplying ...

36. Expenditures for the General Government Are for the Common Benefit: While expenditure for the general government is, as a whole, not one of the largest, it is, nevertheless, important. It occurs in all political divisions and occupies a position of about the same rela...

37. Consular and Diplomatic Services Have Been Expensive: The services given by consuls and diplomats represent a governmental activity which has been more expensive in many countries than the economic returns will warrant. Countries which maintain lavish ...

38. Expenditures for Education Have Been Large: The expenditure for education has been an important item in all countries, and in the different political divisions of the United States. At present the actual expenditures of the Federal government f...

39. Highways Are an Important Cause of Public Expenditure: The expenditure for highways is one of growing importance. The development of motor transportation has caused an increased demand for good roads. This item occupies a more important place in city an...

40. The Regulation of Private Industry Is an Item of Increasing Importance: The reaction from the laissez-faire policy is becoming more and more marked. This increased government interference means an increasing expense. It is found in the different political units, but is pe...

41. Many Miscellaneous Expenditures Are Made for the Common Benefit: Many expenditures are made for the common benefit by the different political divisions which will not fall under the previous classifications. While most of them are rather small, the aggregate would ...

42. The Cost of Providing for Dependents, Defectives, and Delinquents Is Large: Expenditures for individuals, although treated as if they were for the common benefit, are not as numerous as the ones for the common benefit. The most important item in this class is the cost of cari...

43. Governments Often Give Pensions and Bounties to Individuals: Some form of the pension system is found in nearly every country. The granting of pensions is generally undertaken on the grounds that a service has been given which has not been properly rewarded, or...

44. Some Expenditures Are for Individual as Well as Common Benefit: The most general governmental service which takes account of both individual and common benefit is the maintaining of the judicial system. The system is maintained primarily for the common good, yet t...

45. Some Expenditures Are Primarily for the Individual: The costs of those industries which government units run on a commercial basis cannot be put in any of the previous classes. No net expenditure is expected to result, since the produce of the industry...

46. Expenditures Tend to Become More for the Common Benefit: The number of functions which governments undertake for the common good increases as civilization advances. In some cases transition from giving a service on the commercial basis to that of the common...

Chapter IV. The Development Of Public Revenue: 47. Most Demands of the Modern State Are Monetary In supplying the various materials and services which have been considered in the preceding pages, the state has no superhuman power. The funds req...

48. Gratuitous Services to the State Are Unsatisfactory: The unsatisfactory character of gratuitous services is one reason why they are so little used at present. In the United States services are sometimes given on boards of directors, or as visitors to pu...

49. Public Revenues Received Many Early Classifications: Almost as soon as states began to rely upon revenues to carry on activities, those interested in fiscal problems became concerned about the importance and justice of the various sources of revenues. B...

50. The Question of Public Lands Has Been Important: The public domain formerly held the most important place in the source of revenues. Much discussion arose as to the wisdom of this, and the result has been that modern states have almost entirely disp...

51. The United States Has Disposed of Her Public Lands: More than three fourths of the continental area of the United States has at some time been the property of the Federal government. Ownership was acquired in various ways. The original thirteen states ...

52. Agitation for the Public Retention of Forests and Mines Has Been Increasing: The justification of public ownership of such domains as forest and mineral lands stands upon an entirely different basis from public ownership of agricultural lands. Management of forestry and mining...

53. States May Successfully Conduct Some Forms of Industry: Much discussion has arisen over the relative efficiency of the management of industries conducted by individuals compared with the management of those conducted by the state. Some countries have exten...

54. The Post Office Is a Good Example of Government Enterprise: Some enterprises seem to fall naturally to government management - in fact, so naturally that the situation that they are really government enterprises is often lost sight of. The postal systems of va...

55. States Enter Many Fields of Activity: The ownership and management of the postal system is perhaps the oldest and most general of government enterprises, yet modern state activities reach into many other fields. Many causes have contribut...

56. Public Ownership Has Had Most Rapid Extension in Municipalities: The larger governmental units of the United States, as has been indicated, have been slow in developing public industries. The opposite tendency has been shown in the municipalities, especially in the...

57. Revenue Has a Place of Relatively Small Importance in Modern Public Enterprise: It has been indicated that the post office may be conducted with a number of ends in view. The same may be said of public industries in general. The revenue aspect first held an important place, such ...

58. The United States Census Bureau Classifies Revenues: The classification of revenues which is used by the census bureau is similar to its classification of expenditures, in that it is largely for mechanical purposes. The reports must be based upon offici...

59. Statistics Show the Rapid Growth in Revenues Secured by Governments: The lack of uniformity in fiscal systems of the various governmental bodies makes it difficult to get accurate comparative statistical data. The census reports on the revenues of the Federa...

60. The Majority of Modern Revenue Is Secured by Compulsion: Revenue systems have gone through a long process of development, and it is only in recent years that they have assumed their present form. The early state scarcely functioned so as to commend itself f...

Chapter V. Taxation: 61. Many Ideas of Taxation Are Inaccurate To the layman a tax is any compulsory payment made to a political division, or, very often, to other institutions. Students of fiscal problems, however, ca...

62. Some Terms Used in Connection with Taxes Are Important: It is important that the student of fiscal problems know the meaning of a number of terms used in connection with taxes. Some of the more important are base, rate, ad valorem, specific, customs duti...

63. The Economic Effect of Taxes Has Received Much Consideration: When the compulsory payment of funds to the state became a fixed and important part of fiscal systems, students became concerned about the economic effects of such procedure. An idea commonly held amo...

64. Adam Smith Gave Four Maxims in Regard to Taxes: Adam Smith devotes considerable space in his Wealth of Nations1 to a treatment of taxation. His four maxims, or canons, as they are commonly called, have become more famous, perhaps, than any other ...

65. Many Attempts Have Been Made to Classify Taxes: The different tax classifications are almost as numerous as the individuals who have made classifications. The most significant failures at satisfactory classification have occurred, perhaps, where th...

66. Taxes May Be Justified but Not Measured by the Benefits Conferred by the State: With the advance of civilization and the development of governments, the functions of the state increased. To carry on these new activities, added sources of revenue had to be sought, not only to meet...

67. Faculty Is Usually a Satisfactory Measure for Taxes: The difficulties encountered in attempting to use the benefit theory soon led to numerous other proposals. Some were simply modifications of this theory, while others sought justice in entirely differ...

68. Many Problems Arise in Measuring Ability: The decision that taxes should be measured by ability to pay by no means gives a solution to all tax problems. One of the most puzzling questions is how ability can best be measured. In early stages o...

69. The Social Aspects of Taxes Deserve Consideration: Many reforms have been advocated with taxation as the machinery through which they were to be accomplished. In these programs of reform taxes have been considered as having a social or ethical functio...

70. States Do Not Always Attempt to Follow Principles of Justice in Levying Taxes: It must not be forgotten that the primary concern of the state is to get revenue; hence considerations of justice often give way to those of expediency. Taxes are found in the fiscal system which cann...

Chapter VI. Fees, Special Assessments, And Other Revenues: 71. Several Factors May Be Considered in Classifying Revenues It has been noted that taxes are the compulsory levies which are made without special reference to the assignment of individual benefit...

72. Fees Have an Important Place in Revenue Systems: As the activities of the state expanded, and the means by which it had been self-supporting were either given up or disappeared, a greater amount of reliance for support continually had to be put upon...

73. The Characteristics of Fees Vary: The revenue received from the payment of fees does not always occupy the same place in fiscal systems. It may be set aside for some specific purpose, or simply be placed in the common fund to help mee...

74. Fees Have Held an Important Place in the Fiscal Systems of European Countries: The importance of the use of fees immediately following the feudal regime has been indicated. It must not be inferred, however, that this was the first time they formed a part of fiscal systems. Early...

75. Fees Have Been Used Extensively in the United States: The American colonies, as might be expected from the practices of the Mother country, made a wide use of fees. Most of the Colonial officials were remunerated for their services by the fees which they...

76. Fees Have Important Social and Political Aspects: The importance of the indirect social and political effects of the fee system must not be overlooked. It is especially marked where the salary of the official is the fees collected. Under such conditi...

77. Special Assessments Resemble Taxes and Fees: A third form of revenue that forms an important part of fiscal systems, especially those of municipalities, is what is known as the special assessment. It is a payment required from owners of proper...

78. The Special Assessment Has Been Used More Extensively in the United States than in Europe: The first example of a levy of the nature of a special assessment may be found in Europe, yet the real development of the system can be traced through the American colonies and states. As early as the...

79. The Justice of Special Assessments Has Not Been Destroyed by Difficulties Encountered in Their Use: Some difficulties have arisen in the use of the special assessment. A number of these difficulties constitute the chief objections that Europeans have to the principle. One which quickly suggests itse...

80. Prices Are Paid for Commercial Services Supplied by the Government: Numerous examples occur where the state supplies services of a commercial nature which might be supplied by individuals. These are not the same in all countries, nor at all times in the same country. ...

81. States Have Sources of Revenue of Minor Importance: Taxes, fees, special assessments, and prices charged for commercial products compose by far the larger part of revenues. A few sources of minor importance exist, however, which should be noted. Some h...

Chapter VII. Revenue Systems Of Important Countries: 82. Modern Revenue Systems Have Developed Since Feudalism Many early states, such as Greece and Rome, furnish examples of well-developed fiscal systems. With the growth of feudalism, however, their...

83. Early Taxes in England Took a Variety of Forms: Some of the first taxes in England took the form of commutations. One of the earliest was known as the ship-geld. When the country was threatened with invasion, the coast towns were expected to furnis...

84. Later English Taxes Are More Permanent: Many of the direct taxes which are indicated above were gradually given up, while the most important one - a direct tax on land - became a permanent source of revenue. No very definite policy was foll...

85. Indirect Taxes Play an Important Role in the Fiscal System of France: The feudal period in France, as in England, contained a number of exactions for the government. These were generally upon land, and were more of the nature of rents than of taxes. As feudalism disinte...

86. The Prussian Tax System Has Had a Systematic Development: Most tax reforms have been spasmodic and have come as the result of necessity rather than of deliberation. Often changes have been made to lighten the burden on particular classes of persons who, for ...

87. Fiscal Development in American Colonies Was Not Uniform: The conditions under which the fiscal systems of the American colonies developed possess a number of distinctive features. Land was never held under a feudal regime, but could always be bought and sol...

88. The Central Government Encountered Difficulties in Financing the Revolution: The difficulties encountered by the central government in securing funds to carry on the Revolutionary War warranted some express provisions in the Federal Constitution in regard to revenues. The unde...

89. The Federal Constitution Contains Important Fiscal Provisions: Fiscal problems, as might be expected, received no little attention in the Constitutional Convention. The measures in the Constitution to safeguard the revenues of the Federal government are as follow...

90. Numerous Taxes Make Up the Revenues of the States: The fiscal systems of the states are separate and distinct from that of the Federal government. The Federal government is one of delegated powers, while the powers of the states are residual. Much div...

91. Definite Tendencies Are Indicated by Fiscal Systems: In this review of the development of tax systems of different countries certain definite tendencies may be noticed. The most important, perhaps, is that, as the central governments become older, and t...

Chapter VIII. The Shifting And Incidence Of Taxes: 92. The Justice of a Tax May Depend on Its Shifting and Incidence A proper understanding of the terms shifting and incidence is necessary before their discussion can profitably be undertaken. Fisca...

93. A Study of Shifting and Incidence Is Fundamentally a Study of Price: It would be utterly impossible to trace the burden of every tax until the incidence were definitely determined. In fact, it would be impossible to trace definitely, through all its ramifications of di...

94. General Poll and Income Taxes Cannot Be Shifted: The conditions just considered, which make the shifting of taxes possible, are scarcely applicable to some taxes, while they are easily applied in the case of others. General poll and income taxes fur...

95. Land Taxes Are Often Called Burdenless Taxes: It is a generally accepted principle that a tax on land values is capitalized, and that sufficient allowance is made in the purchase price that the burden of the tax continues to remain on the individ...

96. Taxes on Buildings May Be Shifted: Since the supply of buildings is not constant, but may be materially changed over a period of time, a tax placed upon them is somewhat different, as regards shifting, from a tax placed upon land. Beca...

97. The Capitalization Theory Has Been Ably Criticized.: The theory that taxes on land and other non-reproducible goods continue to remain a burden upon the owner of the property at the time of the tax levy, has not gone unchallenged. A brief consideration ...

98. All Taxes on Monopolies Will Not Be Shifted to the Consumer: The opinion is prevalent among the uninformed that a monopolist has absolute control in fixing price - that he can fix it at any place he chooses. A tax placed upon a monopoly or upon a monopoly-produ...

99. Taxes on Competitively Produced Goods Have Varying Effects: No general conclusion can be given as to the extent to which taxes are shifted when they are placed upon goods which are produced under competitive conditions. Ordinarily the tax will be shifted to so...

100. Shifting of Taxes Is Influenced by the Elasticity of Supply and Demand: Important conditions which influence and modify the principles of tax shifting which have just been considered, are the elasticity of supply and demand. A supply may be said to be elastic when a small...

Chapter IX. Customs Duties: 101. Modern Customs Duties Apply Chiefly to Imports It has been indicated in a previous chapter that a customary part of early fiscal systems was to levy duties upon goods when they crossed a polit...

102. Various Motives May Prompt the Levy of Customs Duties: The two most important motives which prompt governmental authorities to levy customs duties are to secure revenue, and to protect home industries from foreign competition. These duties are known, resp...

103. The Incidence of Customs Duties Is Important: The principle of shifting and incidence has no more important application to any part of a revenue system than to customs duties. To the uninformed it has appeared that the importer has simply added t...

104. Problems Arise from the Use of Customs Duties: The use of customs duties has developed a number of perplexing difficulties. One of the first to develop was that of smuggling. When a country has a large frontier line, with many possible approaches,...

105. Definite Principles Should Be Followed in Levying Customs Duties: If Adam Smith's second canon of taxation - that the tax which each individual is bound to pay ought to be certain, and not arbitrary - is applicable to any form of revenue, it should apply to the levy...

106. Early United States Tariffs Combined Fiscal and Protective Aspects: Two attempts were made to secure a national tariff before the adoption of the constitution in 1789, which gave Congress practically the exclusive power to levy such duties. These attempts were made ne...

107. The War of 1812 Increased the Sentiment for Protection: The War of 1812, because of the dangers imposed upon shipping, and because of the various regulations which were placed upon trade, greatly disturbed the foreign commerce of the United States. Revenue...

108. The High Tariffs Were Followed by Reduced Rates: The hopes which the protectionist branch held for the tariff of 1832 proved to be ill founded. While a part of the South appeared satisfied, yet the people of South Carolina were too much incensed to ...

109. The Panic of 1857 and the Civil War Changed the Course of Tariff Rates: The tariff of 1857 had been a law but a few months when a panic swept the country with its business failures and consequent treasury deficits. The protectionists realized this as a psychological time ...

110. Revenue Is Given First Consideration in English Tariffs: The tariff schedule of England is an outstanding example of a system in which entire consideration is given to the fiscal aspects. This result was achieved, however, only after a long process of evolu...

111. Other Countries Have Used Tariffs for Industrial and Fiscal Purposes: The use of some form of customs duties is almost universal. In scarcely any country, however, is such undivided attention paid to the fiscal results as in England. In France the list of articles taxed...

Chapter X. Excise, Capitation, And Business Taxes: 112. The Federal and State Governments Impose Many Taxes The customs duties have received more consideration than any other form of revenue which has been used by either the Federal or state govern...

113. Excise Duties Are Taxes upon Consumption: Present excise taxes have, to a large extent, replaced what were once called direct taxes upon consumption. By the expression direct consumption taxes'' was meant that the tax was placed upon the con...

114. The Use of Excise Taxes Presents Various Problems: In framing and administering a system of excise taxes, a number of difficulties present themselves. Not least among these is the problem of making the taxes conform to the principles of justice in tax...

115. Excise Taxes May Have Industrial and Social Effects: The use of excise taxes, aside from any fiscal considerations, may have intentional or unintentional effects upon industrial and social activities. Obviously, these effects cannot be accurately me...

116. Different Methods Are Used in Levying Excise Taxes: The original levy of the excise tax may be made in different ways, even though the burden is expected to rest upon the final consumer of the product. These ways may be divided into two general classes...

117. Excise Taxes Will Continue to Form a Part of Fiscal Systems: The adoption of any new plan for raising revenue has usually met with numerous objections, and the introduction of the excise tax did not escape. Its introduction in England was severely criticized, w...

118. The United States Has Effective Machinery for Administering Excises: The machinery for handling the collection of the internal revenue for a country as large as the United States must necessarily be extensive. Since the additional duties of assessing and collecting the...

119. The United States Did Not Use Excises Extensively Before the Civil War: The constitutional grant to the Federal government of the power to levy internal revenue duties was the cause for much objection. All sorts of evil consequences were pictured, such as the entire confi...

120. Some Civil War Excises Have Been Permanently Retained: No attempt was made to secure any adequate revenue from taxes during the first months of the Civil War. It was the policy of the Secretary of the Treasury to rely principally upon borrowed funds to me...

121. Excise Taxes Have Important Places in Foreign Fiscal Systems: It is intended to do no more than simply indicate some of the uses of excise taxes in countries other than the United States. As might be expected, because of their indirect nature they very early hel...

122. Government Industries May Have the Effect of Excise Taxes: It was pointed out in an earlier chapter that a state may take over and conduct an industry, and that in doing this it may be impelled by any one of several motivating forces. If the thing which leads...

123. Capitation Taxes Are No Longer Important in Fiscal Systems: Capitation or poll taxes have never occupied a place of importance in Federal revenue systems, yet they have played a role of more or less importance in some of the states and minor political division...

124. Business Taxes Have Been Extensively Developed in France and Prussia: In these days of excessive public expenditure and consequent demands for revenue, fiscal authorities of all political units are anxious to discover untapped sources of funds, and, if such are discover...

125. Business and License Taxes May Be Extended by American Fiscal Authorities: The methods to be used by the different political divisions of the United States in securing increased revenues, has been an important phase of recent fiscal discussion, and no little attention has be...

Chapter XI Property Taxes: 126. Taxes on Property Have Developed from Early Times It has been pointed out that taxes first came into use to meet extraordinary needs for funds. When their use became somewhat general some defi...

127. Democratic Ideals Have Influenced the Tax System: It is difficult to describe the minutia of the workings of the general property tax by the use of broad generalizations. Each of the forty-eight states is governed by an individual constitution, and d...

128. The Southern and Western States Present Centralized Tax Systems: Less importance is attached to the duties of local officials in the parts of the country that failed to develop strong local governments. The plantation type of development in the South did not encour...

129. Some Features of the Early Property Tax Do Not Now Exist: In the course of its development many changes have occurred in the nature of the general property tax. At its inception it was distinctly a personal tax levied to secure revenue for local purposes. In...

130. Marked Variations Occur in the Assessment of Real Property: The instructions which most assessors receive require that real estate be assessed at a fair cash value - that is, what it would bring at sale with a willing purchaser and willing seller. That some me...

131. Much Personal Property Is Not Assessed: The inequalities in real estate assessments fade into insignificance when the results of the attempts to reach personal property values are brought in review. If assessors have been unable to give a s...

132. Difficulties Arise in Exempting Property from Taxation: The caption, general property tax, is somewhat misleading, for specific kinds of property are generally relieved from the application of the law. In some of the earlier states one of the privileges...

133. Evils of Double Taxation Arise with the Use of Personal Property Taxes: The expression double taxation appears almost self-explanatory, yet it may have a number of applications. In general, it refers to the levy and collection of two taxes, the burden of which falls up...

134. The Proper Handling of Indebtedness Is Difficult: Much difficulty has arisen in handling indebtedness. Where indebtedness exists it is obviously unjust to tax both the debtor on his indebtedness and the creditor on the evidence of this indebtedness. ...

135. The Personal Property Tax Discriminates Among Classes: Many state constitutions assert that all property must be assessed at a uniform rate, yet such a conspicuous violation of this principle occurs nowhere to the extent that it does in the working of the...

136. The Personal Property Tax Degrades the Morals of Citizens: The personal property tax has been characterized as one which falls upon the ignorant and the honest. Since such a small amount of the tax is assessed, the statement implies that a large majority of t...

137. The General Property Tax Is Intrenched in the United States: When all these glaring defects of a system are presented, one immediately inquires, Why is it toler-ated? A number of explanations might be given. The country has been new and prosperous, and the re...

Chapter XII. Property Tax Reform: 138. Constitutional Provisions Present Difficulties Many changes and suggestions have been made to attempt to remedy some of the evils that were pointed out in the preceding chapter. One of the fir...

139. Attempts Have Been Made to Correct Inequalities of Real Estate Assessments: One of Adam Smith's canons of taxation is that taxes shall be certain and not arbitrary. We have gone far, as has been previously noted, in constitutional attempts to enforce this ideal. In practice, ...

140. Many Devices Are Used in Personal Property Assessments: Because of the difficulties that have attended the assessment of personal property, many methods of securing better results have been suggested, and some have been tried. Such suggestions as the class...

141. Classification of Property for Taxation Has Been Attempted: The restrictions imposed by constitutions have been particularly troublesome where attempts have been made to treat classes of property differently in order to equalize more nearly the tax burden. The...

142. Limitations Have Been Placed upon Tax Rates and Borrowing Power: The rapid increase in public expenditures, especially on the part of cities, has been viewed with alarm by the taxpaying citizenship. Charges of graft, recklessness, inefficiency, and general lack of ...

143. The Separation of Sources of Revenue Has Been Advocated: The complexities and evils of modern tax systems have led many to desire and to seek for better things. One cause for the difficulties has been the attempt of different political divisions to secure f...

144. The Present Tendency Is to Centralize Fiscal Authority: The preceding topic has indicated that there is some demand for what is known as local option, or home rule, in taxation - that is, to allow each tax district to be an automaton in determining its fis...

145. The State Tax Commission Presents the Best Example of Centralization: The growth of problems which called for the attention of central authorities, and the general trend toward this form of administration, have demanded a competent central organization to render the req...

146. Taxation of Property Remains Unsatisfactory: So far the changes made in assessing and taxing property have been void of satisfactory results. If all the devices suggested above were generally adopted, some of the defects of the present property ...

Chapter XIII. Income Taxes: 147. The Use of Income Taxes Represents a Developed Fiscal System The development of criteria of justice in taxation, with the general acceptance of faculty or ability to pay as the most satisfacto...

148. Difficulties Arise in Defining Income: Some definite understanding as to what the term income includes becomes necessary, since income taxes are assuming such an important place in fiscal systems. Webster defines an income as that gain or...

149. The Concept of Income Is Sometimes Modified to Conform to Justice in Taxation: In their attempt to reach ability to pay taxes fiscal authorities often make differentiations in incomes which would not otherwise be made. A discussion of the uniformity of taxation clause, which is ...

150. Variations Occur in Methods of Levying Income Taxes: Many authorities have recognized the theoretical justice of the income tax, yet have been skeptical of its use because of practical difficulties which arise. John Stuart Mill considered it, in princip...

151. Fiscal Authorities Meet Difficulties in Ascertaining and Classifying Incomes: Incomes have much to recommend them as sources of taxation. If any single tax were practicable, one upon incomes would doubtless most nearly meet the requirements of justice. Incomes represent a flow ...

152. The Income Tax Has Been Successfully Used in England: The income tax has held an important place in the fiscal system of England for more than three quarters of a century. Even before it became a permanent feature it was used more or less systematically....

153. Prussia Has Used Income Taxes Successfully: The Prussian income tax had its beginnings in the use of poll and class taxes as far back as 1811. Gradual changes in subsequent fiscal laws have resulted in a use of the income tax as extensi...

154. Many Other Foreign Countries Use the Income Tax: One would not be justified in a book of this nature in even briefly outlining the use of the income tax as it is found in more than fifty countries outside the United States. In some of the countries ...

155. Federal Income Taxes in the United States Have Had No Systematic Development: No emergency of sufficient moment arose for more than half a century after the establishment of our national government to force fiscal authorities to utilize every possible source of revenue. No atte...

156. Federal Income Taxes Were Attempted in 1894: After the abandonment of the income tax in 1872 revenues were so large from other sources that practically no consideration was given to this form of taxation. It was not until 1894 that an occasion s...

157. The Present Federal Income Tax Was Made Possible Through a Constitutional Amendment: After the adverse decision of 1895, sentiment in favor of the income tax as a source of Federal revenue seemed to gain ground. 1 Pollock vs. Farmers' Loan and Trust Co., 157 U. S. 429. This opini...

158. The Income Tax Was Modified by the Revenue Act of 1916: It was too much to hope that the new tax law would meet with unmitigated success. A heavy burden was placed upon the internal revenue department of the treasury in interpreting ambiguous phraseology, ...

159. Defects Occur in Federal Income Taxation: It is too much to expect that a system so new, and one which has been expanded to such an extent within a short period of time, would possess a perfection which leaves nothing to be desired. While the...

160. Income Taxes Have Been Used by Several States: The use of income taxes as a part of the fiscal system of states is looked upon by many as an innovation. There has never been a time, however, when one or more of the states has not had the income ta...

Chapter XIV Inheritance Taxes: 161. The Inheritance Tax Is Not of Recent Origin A somewhat detailed study of the theory, advantages, and defects of the inheritance tax is warranted, because so much importance has been attached t...

162. The Inheritance Tax Was Much Discussed by Early Economists: In their discussion of ways and means for obtaining revenue, the early writers on fiscal subjects generally gave space to a consideration of inheritance taxes. Adam Smith opposed the tax because it di...

163. The Inheritance Tax Is Widely Advocated at Present: It is not necessary, however, to turn to an earlier age to find a defense of the inheritance tax. Much of the earlier opposition has broken down, and ardent supporters may be found among all classes -...

164. Some Justify the Inheritance Tax as a Regulator of Fortunes: There is no part of any fiscal system which has had so many and diverse arguments advanced in its favor as a tax upon the transfer of property at death. These range all the way from arguments of a pur...

165. The Benefit Theory Has Been Applied to Taxing Inheritances: Some advocates of the inheritance tax claim that it is only because of the action of the state that, in the first place, there is an accumulation of wealth, and in the second place, that a transmissio...

166. The Inheritance Tax Conforms to Modern Fiscal Concepts: A consideration of justice in taxation reveals that, through a process of evolution, the most commonly accepted principle for the levy of taxes is ability to pay, with perhaps some consideration for t...

167. Many Objections to the Inheritance Tax Are Weak: Blakemore and Bancroft, in their book on inheritance taxes, say: Firmly entrenched in a long and honorable history, with the endorsement of the leading economists of ancient and modern times, and a...

168. The Courts Have Strengthened the Position of the Inheritance Tax: Hundreds of cases involving different aspects of the inheritance tax have come before state and Federal courts, and with but few exceptions the decisions have given this form of revenue a firmer place...

169. Problems Arise in Formulating Inheritance Tax Laws: The principle of the inheritance tax may be considered just, and the conclusion may be drawn that it unquestionably deserves a place in fiscal systems. This, however, does not preclude the appearance ...

170. Conflicting Jurisdictions Create Serious Problems: The existence of a number of political units, whose interests are not separate and distinct, and the attempt of each to adopt a form of taxation designed for its own needs, with little consideration f...

171. The Federal Government Has Not Regularly Used Inheritance Taxes: The inheritance tax has found a place in the fiscal system of the Federal government at several different times. Generally this has been in times of emergency, when the primary object was to secure mo...

172. Inheritance Taxes Are Important in the Fiscal Systems of Some States: Ever since Pennsylvania adopted the principle of the inheritance tax in 1826, it has been embodied in the fiscal system of one or more of the American states. Its importance has greatly increased, how...

173. The Inheritance Tax Is Used Extensively Abroad: A study of the use of the inheritance tax in foreign countries reveals how dilatory America has been in seizing upon the principle. The tax has been extensively used in Switzerland, Spain, Sweden, Hol...

Chapter XV. Taxation Of Corporations: 174. Different Causes Have Placed Special Taxes on Corporations The introduction of the corporate form of industry was heralded with delight, and corporations were looked upon and treated as a clas...

175. Special Corporation Taxes Take the Form of Franchise Taxes: Corporations usually have not been relieved from the assessments of local taxing districts, but the demand for heavier burdens against them has resulted in the imposition of additional taxes, usually ...

176. Taxation of the Franchise to Be Presents Serious Problems: The taxation of corporations presents difficulties in addition to those which arise in the taxation of individuals. One of the first situations which presents itself is that an artificial individual h...

177. Taxes upon Capital Have Been Most General: In attempting to impose an extra tax upon corporations, one of the first schemes hit upon was to place a levy of some nature upon the capital stock. This continues to be in use more than any other sin...

178. Public Utilities Frequently Have Been Subject to Special Taxes: The attempt to reach all classes of corporations by the same methods of taxation soon caused dissatisfaction. It was found that assessments could not all be made in the same manner, that much inequali...

179. A Tax on Gross Earnings Presents Difficulties: Extensive use has been made of earnings as a tax base in an attempt to get away from the difficulty of placing a taxable value upon public utility corporations. To make this concrete, the state of New...

180. Taxes on Net Earnings Have Not Been Satisfactory: The difficulties of a gross earnings tax have led some to advocate and others to refuse to give up net earnings as the proper base for taxes. Net earnings can be used, either as the direct base for th...

181. Taxes upon Value Are Becoming More Popular: Many objections have been made to what has been known as the ad valorem basis for taxing corporations. These objections have arisen, largely, because of a misunderstanding of the term, and because of ...

182. Taxes on Public Utilities Are No Longer Needed for Regulation: The important function of securing justice between the public and the corporation, which belonged to the early taxes upon public utilities, no longer remains. The public service commissions are expect...

183. New York Furnishes the Best Example of Special Franchise Taxation: The system for taxing public utilities in New York may again be called upon to furnish the best illustration of an attempt to tax the special franchise of a corporation. This is found in what is known...

184. Some Corporations Have Been Taxed in Special Classes: Other kinds of corporations besides public utilities have been put in special classes for the purpose of taxation. Some of the most general of these classes are banks, insurance companies, and, freque...

185. Taxation of Foreign Corporations Has Proved Troublesome: A foreign corporation is one whose charter is granted in some other state than the one in which the business of the corporation is located. Corporations, moreover, do not come under the privileges a...

186. The Federal Government Taxes Corporations: For a number of years corporations were regarded as a source of revenue solely for state purposes. More recently, however, the Federal government has begun to use the corporate form of organization as...

187. Taxes Have Been Placed upon the Transfer of Corporate Securities: In recent years some states have placed a tax upon the transfer of corporate shares of stock. In reality this is not a tax upon corporations, but upon the exchange or sale of shares of stock which has...

Chapter XVI. The Single Tax: 188. The Proposal for a Single Tax Is Not a New One The expression Single Tax is familiar to everyone who has the least interest in fiscal reform. Because of the extensive propaganda which has ...

189. Henry George Was Responsible for the Modern Single Tax Proposal: The active propaganda for the modern single tax has been in progress for less than half a century, yet nearly every principle around which the theory is formulated was propounded years before, in vari...

190. The Single Tax Program Has a Broad Social as Well as Fiscal Significance: The usual inference from the mention of taxes is that something of a fiscal significance is intended. The fiscal aspects of the single tax are overshadowed to some extent by the contemplated social re...

191. The Principle of Natural Rights Is Not Generally Indorsed: That land is a gift of nature is accepted as a matter of course; but the principle of natural rights, as propounded by Henry George, has not been indorsed to any great extent. It is for philosophers t...

192. Social Values and Unearned Increments Are Not Confined to Land: It is quite true that man is not responsible for many of the differences in land values. Nature is responsible for differences of fertility and location, and society has been responsible, no doubt, fo...

193. The Social Claims for the Single Tax Have Not Been Proved: The contention that the adoption of the single tax would bring about a social millennium is optimistic in the extreme. The basis for the optimism, however, is difficult to discover. One claim for its ...

194. The Use of the Single Tax Would Reveal Undesirable Features and Difficulties: The adoption of the single tax proposal in toto would mean the abolition of all other forms of taxes, whether they be primarily sumptuary or for revenue purposes. It would mean the abolition of custom...

195. The Burden of the Single Tax Would Be Most Severely Felt by Rural Districts: Much discussion has been carried on as to what effect the adoption of a tax on land values to secure the amount of revenue which is now needed would have in changing the tax burden, particularly as be...

196. Various Tactics Have Been Employed in Propagating the Single Tax: Many direct attempts have been made to secure the adoption of the single tax program, while many of the attempts have been indirect and concealed. The use of political campaigns, legislative action, a...

197. The Single Tax Campaign in Oregon Did Not Show Substantial Results: When Joseph Fels established his fund for single tax propaganda, it was his purpose to have the single tax in actual operation somewhere in the United States within five years, and to this end the com...

198. The Advocates of the Single Tax Have Been Active in Other States: While one of the most important battles for the single tax was staged in Oregon, much activity has been found in other states. Campaigns of more or less intensity have been carried on in some of the o...

199. The Single Tax Has Found Adherents Outside the United States: The single tax movement has not been confined to the United States. In fact, when adherents of the proposal wish to cite examples of its successful operation, they invariably choose them from the citi...

200. The Single Tax Agitation Has Emphasized Defects in Our Fiscal System: Most economists and fiscal authorities condemn the theoretical and practical principles of the single tax, yet none will deny that the agitation has served to emphasize some of the defects of our fisc...

Chapter XVII. Public Indebtedness: 201. Indebtedness Is Characteristic of Modern Fiscal Systems In the early existence of governments, borrowing was looked upon as an extraordinary means of securing revenue. This method was to be ...

202. All Aspects of Public and Private Debts Are Not the Same: While public borrowing in general partakes of the nature of private indebtedness, yet in some respects differences may occur. In both cases some form of credit must be established, and a source of loa...

203. The Economic and Political Effects of Public Indebtedness Are Important: Much has been said and written concerning the economic and political feasibility of public borrowing. Opinions have varied from the utmost condemnation to the heartiest approval. The earlier writers w...

204. All Countries Have Not Taken the Same Attitude Toward Extinguishing the Public Debt: The question naturally arises as to what disposition shall be made of a public debt after it has been contracted. The answer which ordinarily occurs to American students is that the debt will be cance...

205. Public Debts May Take a Number of Forms: Not all public debts are of the same nature, and may differ materially in a number of ways. One of the first distinctions to be drawn was between funded and unfunded debts. As the terms indicate, a fu...

206. Many Problems Arise in Floating a Bond Issue: Many problems confront the fiscal authorities when they decide to float an issue of public securities. The rate of interest is an important consideration, as well as the method of securing subscriptio...

207. Administering a Public Debt Presents Complex Problems: We have already noticed that public credit may take the form of perpetual bonds, a principal and interest charge, or some form of annuity payment. In administering these various forms, especially the ...

208. A Study of Indebtedness in the United States Presents Interesting Conclusions: Statistics of indebtedness of the Federal government and some of the minor political divisions, inaccurate as they may be, present some interesting comparisons. The following table gives the comparati...

209. The Indebtedness of Many Countries Has Reached Vast Proportions: The indebtedness of the principal nations of the world has become so large as to be almost incomprehensible. The Great War was responsible to a large extent, of course, for this situation. The followi...

Chapter XVIII. The Administration Of Public Funds: 210. The Importance of Proper Fiscal Administration Has Been Underestimated Previous chapters have indicated that, during the first stages of the development of fiscal systems, the question of ...

211. The Administration of Public Funds Should Harmonize with Other Institutions: When the amount of funds which fiscal officials handled was small, the method in which they were administered was of little concern to others than the officials. As the amount of funds began to increa...

212. The Expenditure of Federal Funds Is Carefully Scrutinized: In the establishment of the Treasury Department there was a diversity of opinion as to what form it should take. Many felt that it would be unwise to in-trust the handling of the nation's finances to ...

213. Revenues and Expenditures Should Be Closely Correlated: The fact that some close relation should exist between a government's expenditures and revenues seems too obvious to mention. Yet fiscal officials have often lost sight of this first principle of soun...

214. England Has Done Much to Systematize Her Fiscal Operations: Great Britain has worked out a more detailed system for handling her fiscal operations than, perhaps, any other country, and her system has been adopted almost in its entirety by India and Egypt. Beca...

215. Many European States Use a Form of Budget: England must be given the credit for having the most systematic fiscal scheme, yet many of the systems of the continental states have made an approach toward an orderly arrangement of their fiscal mac...

216. The Fiscal Machinery of Canada Resembles That of England: The influence of the Mother country, as might be expected, is clearly discernible in the fiscal system of Canada. Estimates are prepared by the Ministers of the departments and presented to the Minist...

217. Budget Development in the United States Has Been Toward an Unsystematic System: The above outlines of different budgetary systems has been given to indicate the tendency toward a systematic procedure in arriving at expenditures and revenues. The same tendency exists in many other...

218. The Present Plan of Estimating Revenues and Expenditures Is Unsatisfactory: It is instructive to know the condition which has resulted from the fiscal development which we have just traced. The Secretary of the Treasury has become little more than an outlet through which repo...

219. Much Agitation for Budget Reform Has Developed: The evils which have resulted from the lack of centralized fiscal control and corresponding lack of responsibility have caused much demand for some change. These demands began to take definite form un...

220. The Budget System of Fiscal Administration Is Found in Many American States: The recommendations which were made by President Taft's Commission on 1 President Harding, in a speech delivered before the Academy of Political Science, at the Hotel Astor, May 23, 1921. ...

221. The Administration of Municipal Finances Is Receiving Much Attention: As much importance has been attached to the proper administration of municipal finances in recent years as to that of any political division. A number of circumstances may be found to account for this...

222. The Outlook for Proper Fiscal Administration Is Encouraging: With the adoption of a Federal budget system and the extension of the plan among the states, the public will have a better opportunity, at least, to know what use is being made of its funds, and upon ...

Chapter XIX. Financing An Emergency: 223. Expenditures for War Furnish the Best Example of Emergency Financiering The question of how to meet emergencies which may overtake a nation or any of its minor political units has always ...

224. The Problem Is to Secure Revenue or Materials: After the breakdown of the war chest as a method of financing emergencies such as war, other methods of securing funds had to be found. Various schemes were hit upon, the efficacy and advisability of ...

225. Borrowing Possesses Some Evident Advantages: Opinions vary greatly as to the proper method of war finance. Some contend that the entire burden should be met from taxes, while others go to the opposite extreme and conclude that the proper method ...

226. Borrowing Is Likely to Increase the Costs of War: The outstanding objection to the use of fiat money as a means for meeting an emergency is that the inflation of the currency causes a higher price level, which not only enhances the cost of the war - ...

227. Borrowing Does Not Shift the Burden of War to the Future: One of the most popular of the arguments which have been used to justify extensive borrowing to finance a war is that future generations are recipients of the benefits, and hence should share the burd...

228. The Extensive Use of Taxes Has Much to Commend It: Opposed to those who advocate the extensive use of loans for financing a war are the advocates of the extensive use of taxation. Since the burden must be met from taxes eventually, whatever the method...

229. Borrowing Usually Has a Legitimate Place in Emergency Financiering: The case for the extensive use of taxes in financing a war is strong, yet various circumstances usually exist which make it impracticable to attempt to raise all the needed revenues from this source. ...

230. The Proper Combination of Loans and Taxes Forms the Best War Finance Policy: The foregoing discussion points to the conclusion that, while an extensive or exclusive reliance upon taxes is theoretically advisable, yet the practical aspects of the case nearly always make some us...

231. Earlier Wars of the United States Were Financed Largely Through Borrowing: Between the Revolutionary War and the Great War, only two conflicts have appeared in American history which have placed any real burden upon the people. These were the War of 1812 and the Civil War. ...

232. The United States Made Extensive Use of Taxes in Financing the Great War: In a discussion of methods used to finance war, those used by the various countries to provide funds for the recent world conflict command the interest of students of fiscal problems. A brief review o...

233. Administrative Problems Developed from the Tax Laws: Such a wide expansion of existing taxes and the adoption of so many new forms of revenue precipitated, as might be expected, a number of problems with which the administrative officials had to cope. I...

234. The United States Borrowed Extensively During the Great War: In spite of the strenuous efforts to secure revenue from taxes, it was found necessary to secure the larger part of the needed funds by borrowing. The different loans were well organized and were carr...

235. Fiscal Problems Did Not End with the War: If the fiscal problems and difficulties caused by a war would end with the war, the task of the fiscal official would be materially lessened. The problems, however, do not cease, but, on the othe...

236. England Financed the War Through a Combination of Loans and Taxes: The war came upon England as a bolt from the clear sky, and she consequently had no time to put her fiscal house in order to meet the unwelcome guest. The first problem which presented itself, and whi...

237. The Revenue of France Was Secured Largely by Borrowing: The opening of the war found France in a very different economic condition than that which prevailed in England. The finances were none too sound, and the current revenue was not meeting current expen...

238. The Central Powers Used Loans Most Extensively: Germany, unlike the allied nations, entered the war with closely laid fiscal plans, which had been formulated and developed through long years of preparation. The method for securing funds was based u...

239. The Methods Used by the Different Countries Present Interesting Comparisons: The fiscal systems of no two countries were exactly alike, yet no purpose would be served in outlining that used in any except the more important belligerents. The interest in these countries attaches...

Chapter XX. The Cost Of War: 240. The Cost of War Presents a Variety of Aspects The Great War exhibited the most significant example of a fiscal emergency that has ever confronted the nations of the world, and it is to be ...

241. The United States Was Not Free from War Costs During Its Early History: Few citizens, before the advent of the Great War, have stopped to consider that the direct or indirect expenditures for war have placed a larger burden, in the form of Federal expenditures, upon the p...

242. The Civil War Augmented Our War Burden: It has been seen that, through our years of peaceful development, the outlay for the instruments of war gradually increased. When the Civil War was precipitated upon the nation, however, the costs lea...

243. The Cost of the Great War Eclipsed Any Previous War Expenditures: A number of insurmountable difficulties are at once encountered when an attempt is made to arrive at the costs of a war so recent and of such magnitude as the Great War. A large number of the war expe...

244. The Expansion of Money and Credit Greatly Affected the War Cost: During the Great War, owing to the advanced systems of banking found in most countries, the issue of fiat money was used much less extensively than during our Civil War. Much the same results were eff...

245. The Indirect Costs of the War Must Not Be Overlooked: Thus far, in considering the effects of the Great War, attention has been directed almost entirely to the money outlays. While these were difficult to measure, yet some approximation could be reached....

Chapter XXI. Conclusion: 246. The Fiscal Burden Will Continue to Be Large In the preceding chapters an attempt has been made to give an outline of the growth of public expenditures, of the development of revenue systems ...

247. Different Political Units Will Use the Same Bases for Taxes: The Constitution of the United States is rather insistent upon a separation of sources of revenue for the Federal government and for the states. Thus customs duties were reserved entirely for the use ...

248. The Social Point of View Has Gained in Prominence: Tax systems may and must be looked at from many angles - from the revenue standpoint, the ease of administration, the effect upon the individual or industry upon which the burden is placed, and from t...

249. The Employment of Fiscal Experts Is Encouraging: The formulation of fiscal legislation, not many years ago, was characterized by the selfishness and caprice of politicians. The men who secured berths on committees, empowered with the business of s...

250. The Study of Fiscal Subjects Is Increasing: That a greater interest is being taken in the expenditures and revenues of the various political units is evidenced by the increased study of these problems which is being carried on, both by those di...

251. A More Enlightened Public Is Needed: One of the outstanding needs in the further perfection of fiscal systems, and one which can only come with the gradual dissemination of knowledge as to the nature of expenditures and revenues, is an e...

252. Tax Laws Need Simplification: It has been the intention in the preceding pages to mention and discuss only some of the more important considerations that confront fiscal students and officials. Many others have doubtless occurred ...

253. Attempts Have Been Made to Outline a Model System of Taxation: The difficulties which have been considered in the foregoing pages have weighed heavily upon the minds of fiscal students and officials who have been interested in a greater degree of justice and simp...

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