Highways and Highway Transportation

by George R. Chatburn

Public Financing.

—Every civic government has its methods for the collection of revenue to pay its necessary expenses. One of the easiest things theoretically to do, then, is to collect by a tax on the property of the district—state, county, township—sufficient money to meet expenses, including the building and maintenance of roads, from the property holders in proportion to their wealth and turn it over to the proper officers for expenditure. When roads were yet simple things, before they had become elaborate and complicated structures, that might have been done. Practically, however, even then the working of the roads was a farce; men sat around, told stories, retailed the neighborhood gossip and smoked their pipes or whittled sticks, while the horses hitched to the scraper or plow stood limp with one hip lower than the other, eyes half shut lazily swishing at the flies with their long tails. Soon the necessary hours were passed, their poll or road tax had been “worked out.” The roadway was left in an almost impassable condition to be gradually worn smooth during the intervening six months until it came time again to work the roads. To most of those old timers the working of the road was a necessary evil and done only because the law required it. When occasionally a road supervisor insisted on a full day’s work for a day’s credit he was a skinflint and at the next election lost his job.

The tremendous amount of money necessary to construct present types of roads must, in the long run, be obtained from the citizens through some medium of taxation. A tax is a compulsory contribution levied upon persons, property, business, occupations, privileges, or enjoyment of the people for the support of government or governmental functions. When levied upon persons it is usually called a poll or head tax; when upon property, a property tax; when upon business it may be a capital tax, sales tax or an income tax; when upon occupations, an occupation tax; when upon privileges, a license; and when upon enjoyment, a pleasure tax. A good many of them may be lumped together under the name of revenue taxes. Some are collected personally by a specified officer of the government, while others are collected indirectly by the sale of stamps which are attached to the article or transaction taxed.

Taxes may also be classified as direct, indirect and special, all of which are of great importance to the highway.

Direct Taxes.

—Direct taxes are levied directly upon property or persons. State laws usually prescribe that general property taxes shall be levied uniformly over the assessed values of the district concerned. A poll tax is levied on all persons of a particular age or class, as all able-bodied males between the ages of twenty-one and fifty years. An income tax is levied according to some prescribed rule on the annual incomes of persons and corporations. An income tax is really a tax on business, either present or past.

In either case, whether the levy is on his poll, upon the assessed valuation of his property, or upon his declared income, the taxpayer contributes, theoretically at least, in direct proportion to his ability to pay. The amount of the tax is definitely ascertained some little time in advance of payment and is collected directly by an officer of government.

The levying of labor or poll taxes on persons living within a particular road district easily expanded to the levying of property taxes to care for the local roads. However, as the cost of road building and maintenance increased the fronting or contiguous property could not stand the entire burden, the zone of taxation was widened to include larger areas, the township, the county or the state, depending on the importance of the highway.

Indirect Taxes.

—Indirect taxes are those not levied upon the various persons or the property of the district, but are placed upon some article of consumption or some article of manufacture, upon imports and exports, or some privilege or pleasure. The government does not look to each individual for its money, but to the seller or manufacturer or importer of the article taxed, or the licensee, or the operator of the theater or other pleasure resort. The amount of the tax is added to the price at which the article is sold or to the fee charged so that it is at last borne by the ultimate consumer, in proportion to his consumption of the article taxed, or the privilege enjoyed.