It has repeatedly been made a question of late, whether the United States were more or less heavily taxed than France. The subject may be considered under several points of view. The systems of Taxation in the two countries are very different. The taxes in the United States are less numerous than they are in France, and are differently distributed. The country population, that is the great majority, pay much less in the United States than in France; but in the large towns the inhabitants pay nearly as much as with us, except in Paris. The disproportion between the two countries becomes much greater, if instead of estimating the amount in money, we give it in day's labour, which is the most rational manner. The day-wages of a labourer being about threefold as much in the United States as they are with us, and other things being in the same proportion, it follows, that, in the former, a tax of three dollars to three dollars and a half, which is about the general average, is not more burdensome to the mass of the people, than a tax of one third that sum would be in France. The average tax in France, or six dollars a head, is equivalent to twentysix days' work in our country; while the average in the United States is only equivalent to four days' work in that country.
It is true, that, amongst us, all the public expenditures are comprised in the budget; all our taxes amount to 190 million dollars. But in the United States, there are various expenses supported by individuals and companies, which do not appear in the sum of the public taxes. Toll is paid on a very large number of roads: public worship is maintained at the expense of the worshippers; hence heavy charges on the rich.
It is important to remark, that the public revenue in the United States is almost wholly employed in a productive manner, in useful undertakings, in public works, schools, and various kinds of improvements. There is no Federal debt, that of most of the States and towns is inconsiderable, there are no retiring pensions, and the army is small; whilst more than half of our budget, or 118 million dollars, is devoted to the charges on the public debt, pensions, and the sea and land forces, we cannot expect to restore the balance in our favour, because we cannot dismiss our soldiers, nor declare a national bankruptcy; but we might diminish our present inferiority (paradoxical as it may seem), by adding some millions to our budget for useful and productive works.
The military service itself is a public burden and a very heavy one; but it is difficult to rate the amount of this in money. In France it takes one man out of eighty inhabitants from labour, but in the United States only one out of 2,300. This tax might be lightened, by employing the army in public works.
We may also notice the two following differences, which appear to me essential ones, between American and French taxes:—
1. The American taxes, whether it be from the mode of their assessment, or from the difference of conditions of the two countries, never press heavily upon the taxables nor give them any uneasiness; they never embarrass transactions nor interrupt business. On the contrary, amongst us the tax is often an oppressive burden; our registry dues, and excise on property changing hands, often occasion serious embarrassments and even insurmountable obstacles in the way of enterprise.
2. In the United States the treasury fears to incur the public odium; amongst us the most respectable citizens are subjected to the most vexatious treatment; our officers of the customs have adopted practices unworthy of a civilised people; our wives and daughters must submit to be searched in the most shameless manner by vile hags, and these brutal proceedings have not the poor excuse of being useful to the customs. Their avowed object is to prevent the smuggling of articles, with which, in spite of three lines of custom-house officers, the country is inundated, and which it is well known are brought in by dogs[EL] on a large scale, and not in the pockets of private persons. The branches of industry, which they are designed to protect, are altogether of secondary importance, and cannot be weighed in the balance against public decency.
Note 21—page 11.
Construction and Cost of Steamboats in the West.