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 assessed 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 assessed 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 passing 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 institutions 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 assessments. 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,
pawnbrokers, 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 constitute 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."
They have a Governor appointed by the President, a legislature of two
Houses elected by the people, and a system of courts.
"There are seventy-six cities and towns which enjoy some local
government."
They send as their representative to Congress, a resident
commissioner. While these new possessions are expensive they add great
wealth and power to our nation.
Taxes are contributions that the people are required by the government
to pay in order to meet the expenses of our nation.
We are not patriotic unless we respond to the call of our government.
REFERENDUM AND INITIATIVE.
Some states have the referendum and initiative power of helping to
make laws.
If a state legislature passes a law that the people do not approve of
a petition may be signed by a certain number of voters which will
require the law to be referred to the people for their approval or
disapproval.
Referendum means referring a law passed by the legislature back to the
voters for their approval or disapproval.
"If five per cent of the voters of a state and two-thirds of the
congressional districts do not approve of a bill passed by the General
Assembly they sign a petition and file it with the Secretary of State
in ninety days after the General Assembly adjourns." The question
involved is then submitted to the voters at the next election for
their approval or disapproval.
The initiative is the right of the voters to start legislation. The
object of the initiative and the referendum is to compel legislative
bodies to act and respect the will of the people whom they represent.
The initiative petition must be filed four months before the regular
election with the Secretary of State.
THE DISTRICT OF COLUMBIA.
The District of Columbia, including Washington, the Capital of the
United States, is governed by Congress and by judicial and executive
officers appointed by the President of the United States. The people
have no power of self government.
The Constitution gives Congress the exclusive right of government in
the District of Columbia.
It is governed by three commissioners appointed by the President. One
must be an officer of the army and the other two appointed from civil
life.
Congress keeps a watch over the District, and devotes certain days to
considering the business of the District.
The courts of the district are Court of Appeals, Supreme Court, police
court, justices of the peace.
The judicial officers are appointed by the President.
The District of Columbia has no representative in Congress.
PANAMA CANAL ZONE.
The Panama Canal Zone is under the control of a governor who is
appointed by the President of the United States.
"It is neutral and open to vessels of commerce and war of all nations,
but war vessels must pass through without delay and while in the canal
cannot load or unload troops or munitions of war."
The cost of the construction of the canal was about $400,000,000. It
shortens the voyage from New York to San Francisco 8,000 miles.
GUAM AND SAMOAN ISLANDS.
These islands are naval stations and are governed by the naval
officers stationed there.
COMMERCE.
Commerce is divided between the state and Federal governments. We have
interstate commerce, foreign commerce and commerce with the Indians.
Congress regulates commerce.
Interstate commerce is carried on in the United States, as when goods
are shipped from one state to another, or one place in a state to
another, either by land or water. The Interstate Commerce Commission
provided for by Congress is composed of nine men appointed by the
President, and regulates interstate commerce. The members of this
commission receive a salary of $10,000.00 annually.
FOREIGN COMMERCE.
Foreign commerce is commerce carried on with foreign countries.
Certain regulations are prescribed for vessels engaged in foreign
commerce, "Enter" and "Clear" ports.
All vessels registered in the United States are protected by the
government in any part of the world. Only vessels can be registered by
a citizen of the United States. No foreign vessel can register.
Congress regulates commerce with foreign nations and among the states,
and Indian tribes.
INDIAN TRIBES.
The government looks after the interest of "Indian affairs." There are
about 300,000 Indians on 150 reservations in different states and
territories all under the protection of the United States.
NATIONAL PARKS.
The national government has set aside several large tracts of land for
National Parks. The Yellowstone National Park is about half as large
as Massachusetts and is the most beautiful and interesting park in the
world.