CHAPTER IX.
Taxation.
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The national government is supported by taxation in various ways, and it requires a great amount of money to carry on the business of our country even in times of peace—over $2,000,000,000. This money is raised through a system of taxation of two kinds—direct and indirect.
A direct tax is a tax on real property or a poll tax.
An indirect tax is a tax on one individual, but is indirectly paid by another. (Taxes assessed on merchandise are indirect, as the consumer pays them.)
Most of the money is raised by import duties and excise taxes.
Import duties are taxes on imported goods.
Excise tax is a tax levied on goods manufactured in this country.