The Authority to Tax
is the greatest power a people can give a government, yet it is a necessary measure, but often dangerous; it can be used to impoverish a people, or enrich a comparatively few individuals, or to rob one section of a vast country to build up another. It has caused more distress than droughts or floods; it has caused more insurrections, revolutions, and wars than all other acts of man intrusted with authority. There are many modes of taxation, but the most insidious one is the quiet robbery by a tariff.
This might be demonstrated by the United States pension laws. The pensioners (and I am a Mexican war pensioner) receive as a free gift from the treasury the sum of about one hundred and fifty million dollars annually. It goes to enrich the people of the States where they reside.
If there be no pensioners living in any one State, that State contributes to support the pensioners, but receives nothing in return: so, if all the pensioners were to become citizens of any one State, that State would receive in pension money one hundred and fifty million dollars yearly, or in fifteen years the enormous sum of two billion two hundred and fifty million dollars derived by taxation of the people in the other States, less the sum that one State paid and returned to it.
Now, if all the pensioners, from any cause, should migrate to Ohio, or North Carolina, would the other forty-four States be taxed for (say) the benefit of the people of the State of North Carolina in the sum of two billion two hundred and fifty million dollars during the next fifteen years? No, never.
The presumption is that the Southern States pay, under the revenue laws, one-third of the revenue collected. If so, then the South pays the pensioners about fifty million dollars annually, and receives in return only the small sum paid the few pensioners residing within the Southern States; and thus one section of the country is taxed, under the revenue tariff laws, to enrich the other, Q. E. D.