Citizenship Part 10

TAXATION.

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 a.s.sessed 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.

Duties are taxes on goods imported from foreign countries. The consumer on imported goods indirectly pays the duty a.s.sessed by the government.

There are two kinds of duties--specific and ad valorem.

Specific duties are fixed amounts levied on certain commodities as the yard, pound and gallon.

Ad valorem duties are levied at a certain rate per cent on the value of the articles taxed.

Duties are leviable on either imports or exports.

Imports relate only to goods brought into the country from abroad.

Exports relate to goods sent out of a country.

There is a special system for the collection of import duties, by naming many places along the coast to be used as "ports of entry,"

where custom houses in charge of collectors have been established.

"Each custom house has a collector and the government has employed a large force of officers and special agents to overtake any dishonesty--attempting to smuggle goods through without paying duty."

The state legislature levies the state tax, the city council the city tax, and the taxes to keep up the national government are levied by Congress.

The law making power of Congress and state legislatures not only have the power of pa.s.sing laws, raising money by taxation, but also the right and power of saying how that money shall be spent.

There are several kind of taxes collected for the benefit of the county, town, city and state, viz.: Poll tax, income, inheritance, franchise, property.

Poll tax: This is a tax on the person and not on property. A male citizen twenty-one and over must pay a poll tax of $1.00 even if he has no property. He must pay this tax before he can vote. In Kentucky the poll tax is one dollar.

Income Tax: There is an income tax levied on the income one receives and not on the amount of property he has. It is levied on salaries or profits upon business. Unmarried persons with an income of over $1,000.00 and married persons with an income of over $2,000.00 must pay an income tax.

Inheritance Tax: Many states have an inheritance tax levied on property inherited. This tax is really designated to reach wealthy people, and is easily collected since probate court records state the amounts. Kentucky has an inheritance tax, drawn and introduced by L.

F. Johnson, of Frankfort, in 1906.

Franchise Tax: The government or state gives to a person or corporation special privileges, the rights to use the streets of a city for railway, water, lighting, gas plants, etc., is considered valuable property in the right vested in them by their franchise. This is really a source of income and should be taxed.

Property Tax: Property owners pay a large part of the money raised by taxation. Personal property which includes bonds, stocks, mortgages, household goods, jewels, etc.

Real estate which includes houses, lots, lands and building.

While taxes are levied upon real estate there are some kinds of property exempt from taxation, viz.: public inst.i.tutions and libraries, cemeteries, school houses, churches, and other public buildings.

A great amount of revenue is derived by state and local governments from licenses, fees and special a.s.sessments. Men and women engaged in certain kinds of business must pay to the national, state and local governments a license or fees, as merchants, peddlers, manufacturers, p.a.w.nbrokers, etc.

A fee is a sum paid to an officer of the government, state, city or county for performing some public service or for a license in business. If you wanted to get a deed to land recorded you would have to pay the officer a fee.

The expense of our government is enormous, but the paying of taxes is one way in which all must take part.

ACQUISITION OF NEW TERRITORY.

While the acquisition of new territory has increased the expenses of our nation, yet it has made us the greatest nation in the world.

We have expanded by acquisition of new possessions which Congress organized under the direct control of the "Federal Government," but giving them limited powers of self government, through legislation of their own. When their population is sufficient they will be admitted as states.

Today our national flag contains forty-eight stars, and no part of the United States except Alaska and Hawaii remains under a territorial form of government.

Alaska was purchased from Russia in 1867.

The President of the United States, with the advice and consent of the Senate, appoints the governor and judges of the courts.

They have a legislature composed of two houses whose members are elected by the people. A delegate to Congress with the right to take part in debates but not to vote is also elected by the people.

Hawaii: Hawaii is a regularly organized territory and is governed like Alaska; President appointing the governor with the consent of the Senate, etc.

Possessions: The Philippines, Porto Rico, and other islands are possessions rather than territories of the United States.

Philippines: The Governor General and eight commissioners appointed by the President with the advice and consent of the Senate are at the head of the general government of the Philippines.

"Five members of the commission are heads of the executive departments as well as having legislative powers. The other four members have only legislative power."

Commission: The nine members of the commission appointed by the President const.i.tute the Upper House of the Legislature known as the Senate.

Lower House: The members of the Lower House of Representatives are elected by the people of the various civilized districts.

The nine commissioners represent the legislative body and have control of that part of the island not civilized.

Courts: They have a system of courts in which the judges of the Supreme Court are appointed by the President, and the judges of the lower courts are appointed by the Governor General with the approval of the commission.

Commissioners: There are two resident commissioners sent to the United States from the Philippines with seats in the House of Representatives, but cannot vote, only taking part in the debates.

Provinces: The islands are divided into provinces "each of which is governed by a provincial board of three members, and each province has its own city or town with its local government." Two of the members of the boards are elected by the people, and the third, who is the treasurer, is appointed by the Governor General, but usually a "Filipino."

PORTO RICO.

Under President Wilson's administration "The new organic law granted the people of Porto Rico a greater self government than they had ever enjoyed."