§ 4. Taxation systems of the United States and other Countries.
It will now well repay study to examine Chart [No. XXI], which shows in what manner the United States have raised their revenues, and to consider how far the right rules of taxation have been followed.
I. For means of comparison, I shall give the last annual budget of the United States in order to make clear from what sources the country derives its revenues:
Chart XXI.
United States Budget, Year Ending June 30, 1883.
[In millions and tenths of millions.]
| Receipts: | |
| Customs | $214.7 |
| Internal revenue | 144.7 |
| Direct tax | .1 |
| Sale of public lands | 7.9 |
| Miscellaneous | 30.8 |
| Net ordinary receipts | $398.2 |
| Expenditures: | |
| War Department | $48.9 |
| Navy Department | 15.3 |
| Indians | 7.3 |
| Pensions | 66.0 |
| Miscellaneous | 68.7 |
| Net ordinary expenditures | $206.2 |
| Interest on public debt | 59.2 |
| Total | $265.4 |
This leaves a surplus of $132,839,444 above all expenditures, and our problem is now where to reduce taxation. The annual interest charge is lessening with the payment of the public debt, having fallen from its highest figure of $143,781,591 in 1867, to $59,160,131 in 1883.[349] Our national taxation is practically all indirect, that of internal taxation being chiefly levied on tobacco and distilled spirits, and our customs falling on almost all articles which can be imported, materials as well as manufactures.
In the United States direct taxation on real and personal property is very generally levied for State, county, and municipal purposes. In fact, nearly all the perceptible taxation is the property tax, and, inasmuch as the State and county tax is very light, the burden is almost always owing to municipal and town expenditures. People do not seem to be aware of the enormous national burden, because the taxes are indirect, and only increase the prices of commodities. Other countries, it will be seen, make a greater use of direct taxation than the United States. In fact, the comparison of the ways by which different countries collect their revenues may naturally show us where we may gain by their experience.