A large part of the money necessary for war purposes, and for permanent improvements in time of peace, is raised by borrowing. Governments, whether national, state, or local, borrow money by the sale of BONDS, the purchase price with interest being returned to the purchaser after a stated period of years. The national government borrowed more than 22 billion dollars during the war by the sale of "liberty bonds," and an additional large sum by the sale of "war savings stamps". These loans made by the people are ultimately paid off with funds raised by taxation. The people to- day advance money to the government, which the people of to-morrow pay back by taxation. This is justifiable because the war was fought for the benefit of future generations as well as of the people to-day. For the same reason, the cost of permanent improvements, such as roads and public buildings, is distributed over a period of years.
Investigate and report on:
The full meaning of Article I, section 8, clause i, and section 7, clause I, of the Constitution.
The loss to the nation of revenue as a result of the prohibition of the liquor traffic.
Compensating financial gains to the nation through prohibition of the liquor traffic.
Why an income tax is a good form of taxation. Why it should be "progressive".
The justice of an inheritance tax. Of a tax on excess profits.
Articles upon which you pay an import duty.
Why government is justified in using force to compel the payment of taxes.