What political party had for its platform: "The Constitution of the country, the Union of the States, and the enforcement of the laws?"

What part is socialism taking in the politics of to-day?

What is a primary? State briefly the Uniform Primaries Act of 1906.

Discuss State and National Conventions. What services do political parties render when they nominate candidates? Write a short paper on the topic, "National Conventions."

What are the advantages of the direct vote?

Should candidates and parties give an account of their election expenses?

Do you think that the government of the people of the United States would be a more perfect government if there were only one political party in the country? If not, for what reason?

CHAPTER XVII

TAXATION

A Sovereign Power.-Among the sovereign powers of a government, the power to tax the people is, in a sense, the fundamental one upon which all the others depend. The government is a great business enterprise maintained and operated by the people in order that certain important duties of general interest and benefit may be performed. Money raised for these purposes, which relate to the welfare of all the people of a country, is supposed to be paid by all of the inhabitants, each one furnishing his share; and the share which each one pays is his tax. The magnitude of the operation requires the expenditure of large sums of money, and a government to be stable and efficient must possess adequate power for the levying and collecting of its taxes. The State constitution assumes that the right to tax is inherent in the government. In accordance with the theory which prevails in this country, the power to tax is legislative in its nature, and can be exercised only by representatives elected directly by the people. Although all the members of both houses of the General Assembly are so chosen, all bills for raising revenue must originate in the lower house (59).

Taxes Defined. Society cannot exist without government, and this cannot be carried on without revenue. A tax is a regular pecuniary charge imposed by government upon the people for its own support. Taxes are really portions of

private property which the government takes for its public purposes. The taxpayers should realize that they are simply paying for benefits received.

The Right to Tax not Unlimited. The right of the government to levy and collect taxes is not unlimited. The State constitution restricts the amount of debt which the State and its subordinate local bodies may incur (157). Our great and wealthy Commonwealth, with a population now of about six and one half millions, fixes $1,000,000 as the limit of the debt which may be created to supply deficiencies in revenue (153).

When money is borrowed for State purposes, the Act authorizing the creation of the debt must define the purpose for which the money is to be used, and the money must be used for that purpose, and for no other (154). The credit of the Commonwealth cannot be pledged to individuals or corporations, nor can the State become a joint owner in any company or association or corporation (155).

Direct and Indirect Taxes.-Direct taxes are those which are levied upon the persons, property, business, or income of those who are to pay them.

Indirect taxes are those which are levied upon commodities in the hands of manufacturers and dealers, and are paid in the end by the consumers as a part of the price of the articles. The most important indirect taxes are customs and excise duties. The indirect taxes do not, in general, give rise to as much complaint as the direct taxes, partly because the money which the citizen pays directly out of his own pocket is the only tax which he is quite sure that he pays at all.

The Constitution of the United States forbids the States to derive any revenue from duties upon goods imported or exported. In order to support its government the Commonwealth of Pennsylvania is, therefore, for the most part re

stricted to a direct tax levied upon real estate and personal property.

Vesting the Taxing Power.-The orders of communities are State, county, city or borough, township, and school district. Each has its corresponding taxing authority, capable of fixing the tax levy within the limits prescribed by the State constitution. The power to levy taxes is vested in the General Assembly, the county commissioners, the city and borough councils, the township supervisors, the school directors, and the overseers of the poor.

Assessment. This important step or process in taxing relates to the correct valuation and listing of the property, as the basis for fixing the amount which the individual taxpayer shall pay as his share of the tax. This work is performed by the assessors elected in the townships, boroughs, and city wards throughout the State. It is their duty to put a value upon all taxable property. Now the assessors will differ much in their estimates, and the returns will present many inequalities at the best. The persons who have the duty of revising these estimates are an important factor in the taxing system. A series of boards of equalization compare and revise the valuations made by the various local officers. They are the State board of revenue commissioners, the county commissioners, and the city boards of revision or boards of assessors. The main work of equalization is done by the State board of revenue commissioners, consisting of the auditor-general, the State treasurer, and the secretary of the Commonwealth. It is the duty of the board to ascertain and determine the just value of the property listed in the cities and counties, and to equalize and adjust the assessments as far as possible, so as to make the burden of taxation bear as equally as practicable upon all taxable property throughout the State. Similarly,

for the equalization of taxes, Philadelphia has a board of revision consisting of three members, elected as county officers, for a term of four years. An elector can vote for only two of the members. Cities of the second class have a board of five members, appointed by the mayor; and cities of the third class a board of three members elected by the qualified voters of the city. These are assessors sitting as boards of revision. The board of revision and equalization in a county is composed of the commissioners themselves, and they must qualify for their duties in this capacity by taking a special oath.

Collecting Taxes.-According to the taxing jurisdiction the levies are called State, city, county, borough, or township taxes.

The collecting of these taxes is done by the tax collectors of townships, the treasurers in boroughs, tax collectors and tax receivers in cities, and by county treasurers. Usually the township or borough collector of taxes receives from the individual citizen three distinct taxes: the State tax, the county tax, and the township or borough tax. Thus trouble and expense are saved in the process of collection, and the citizen sees on one tax paper all that he has to pay. The method of collecting the taxes, however, is not the same in all the counties of the State.

State Taxes.-The State taxes which are collected by county officers, and by them paid into the State treasury are: State tax on personal property; tax on direct and collateral inheritances; tax on writs, wills, deeds, etc.; commissions of notaries public; and licenses.

Besides the revenue from these sources, the State receives money from taxes on business corporations. The State cannot be a party to any agreement whereby the power to tax corporations shall be suspended or surrendered (152). Such corporations are required to pay the taxes directly into the