The Fundamental Principles of Taxation in the Light of Modern Developments; (The Newmarch Lectures for 1919)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1921. Excerpt: ... CHAPTER IV THE STANDPOINT OP THE STATE 1. The State has an Independent Standpoint We have been so far discussing the individual point of view--the kind of considerations that will occur to Smith and Jones when they are weighing their respective burdens and criticising the distribution of taxation between them. It is important, of course, that any Finance Minister should give full consideration to the feelings of the taxpayers, but he has also certain little preoccupations of his own which do not greatly concern the taxpayer as an individual payer. The legislature imposing taxation has to give particular attention to aspects of the matter which are more lightly passed over by the individual, except so far as he may be thinking politically and as a voter interested in the national finances. The State as a tax-gatherer has to ask and answer the following questions: 1. Is the proposed tax economical, or will it cost an unwarrantable amount to get it in? 2. Is it within the powers of the administration for assessment and collection, or is it too full of difficulties to be workable? Allied thereto is the question: u 3. Will it be specially open to evasion and provoke dishonesty?, 4. Will the imposition of the tax tend to dry up the source of the tax, and so prove abortive for the Revenue 5. Does it raise political difficulties at home and provoke unrest? 6. Does it raise international difficulties or v provoke conflict with other taxing jurisdictions? 2. The Economy of the Tax If the initial outlay for establishing the machinery for collecting a tax were so costly that the periodical yield of duty hardly paid a reasonable rate of interest on that outlay we should regard the tax as uneconomical in the highest sense. Such cases are rare, but it is a charge f...