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differentiation. It is to be hoped that this will not long be delayed.1

The second defect in the law is the failure to introduce proper administrative methods, so far as ordinary business incomes are concerned. The principle of stoppage at source is not applicable to most of these. It is well known how England has had to struggle with Schedule D. Instead, however, of utilizing the lessons which can be drawn from the English experience, the framers of our law have preferred to leave the matter alone on the ground that too much must not be attempted at once. It remains to be seen whether a simple declaration by the tax payer, even as amended by the government officials, will suffice to prevent a repetition of the enormous frauds and evasions which were common to our income-tax laws of the Civil War period. It is indeed true that the far greater part of the tax is to be collected according to the principle of stoppage at source; but there seems to be no good reason why such an enormous loophole should have been left open in the case of ordinary business returns.

These, however, are the only important criticisms to be urged against the law. So far as the stoppage-at-source principle is concerned, we have seen that in the main it is not only defensible, but constitutes a distinct advance, even though it might have been desirable to substitute, in part at least, the information-at-source principle.

Taking it all in all, the law must be pronounced an intelligent and well-considered effort. It will need amendment in detail to make it completely equitable in principle, and fairly smooth in operation. But when we compare it with our preceding ventures in this field, we may be proud of what has been accomplished. Indeed, the law may be declared to be in many respects superior to any other existing income-tax law. With the passage of time, and with the settlement by economic science of some of the moot points in the theory of

1 Senator Williams mentioned this as well as other possible improvements in a speech beginning: "What we are doing with this income tax is a totally different thing from what we hope to do some day." Congressional Record, p. 4189.

income, it may be expected that the law will gradually win its way to public recognition.

Of the wider question involved as to the probable future of the federal income tax and its position in the whole field of public revenue, this is no place to speak. The gradual development of income taxes in some of our states and the feeling that a large revenue from personal property or its income is needed by our states and municipalities rather than by our federal government, are weighty considerations that must not be overlooked. It is interesting to observe that even during the discussion of the present law the proposal was made that a part of the proceeds, at least, be returned to the states. Had not this suggestion emanated from a source that was undisguisedly hostile to the very idea of a federal income tax, it is not impossible that it would have received fuller recognition.1 Whatever the future may have in store as to the interrelations of federal and state revenue, it is probable that the income tax has come to stay. Let us be thankful that it has come in such a shape, and let us look forward with hopeful anticipation to a future in which the income tax, improved and amended, will play its important part in bringing about greater justice in American taxation.

1 According to the proposition of Senator Dillingham, who presented a joint resolution introduced into the Vermont legislature, the entire proceeds were to go to the states. Congressional Record, Sept. 8, p. 4881. In Mr. Copley's scheme for a highly graduated tax, the surplus only was to go to the states. Ibid., p. 1214.

BIBLIOGRAPHY

A. SIGNED WORKS.

BIBLIOGRAPHY1

ENGLAND

Allen, J. E. "A Graduated Income Tax." The Economic Review, vol. xv (1905).

Atwood, M. Speech on the Income Tax, in the House of Commons, on Wednesday, March 23rd, 1842. London, 1842.

Aucland, Lord. The Substance of a Speech in the House of Peers, on Tuesday, the 8th Day of January, 1799, on the Third Reading of the Bill for Granting Certain Duties upon Income. London, 1799.

B., R. S. Two Letters to a Member of Parliament; containing Suggestions for a Property Tax upon an Improved Basis; with Remarks upon the Principal Speeches in Defense of the Present Income Tax, during the late Debates. London, 1848.

Babbage, Charles. Thoughts on the Principles of Taxation, with Reference to a Property Tax, and its Exceptions. London, 1848.

Beal, James. Direct Taxation. London Financial Reform Association. Observations addressed to the Members of the Westminster Reform Union. London, 1862.

Beeke, Rev. H. Observations on the Produce of the Income Tax, and on its Proportion to the Whole Income of Great Britain: including Important Facts respecting the Extent, Wealth and Population of this Kingdom. Part the First. London, 1799.

Blunden, G. H. "The Position and Function of the Income Tax in the British Fiscal System." The Economic Journal, vol. ii (1892).

Blunden, G. H. "A Progressive Income Tax." The Economic Journal, vol. v (1895).

Blunden, G. H. "A New Property Tax." The Economic Journal, vol. vii (1897).

Blunden, G. H. vol. xi (1901).

"The Future of the Income Tax." The Economic Journal,

Booth, Dr. "On the Principles of an Income Tax." Journal of the Statistical Society, vol. xxiii (1860).

Boult, Francis. Taxation: Direct or Indirect. An Essay intended to be read to the Economic Section of the British Association. Liverpool, 1861. Browning, Reuben. The Finances of Great Britain considered. Comprising an Examination of the Property and Income Tax, and Succession Duty Act of 1853. Part I. London, 1859.

Buchanan, David. Inquiry into the Taxation and Commercial Policy of Great Britain; with Observations on the Principles of Currency and of Exchangeable Value. Edinburgh, 1844.

1 This bibliography does not include the general works on taxation and finance, many of which are quoted in the body of this book.

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