upon cigars is an excise, or internal revenue tax. During the World War, excise taxes were extended to cover many luxuries. Our government was founded upon the principle that taxes ought to be levied only by direct representatives of the people. Therefore the Constitution provides that all bills for raising federal revenue shall originate in the House of Representatives. The House is organized on the basis of population, and its members are elected every two years by the people. In 1921, the first Budget of the United States was compiled by Director Charles G. Dawes, and submitted to Congress. This is the first time in our history that we have drawn up a national balance sheet, and accurately estimated the needs of the government. The Director of the Budget is appointed by the President. 8. HOW CITIZENS CAN CO-OPERATE There are two general ways in which a citizen can co-operate in the work of managing the finances of his community. One is, of course, by being honest in paying his tax obligations, just as he is honest in settling any other debt. Taxes, as we have seen, are bills rendered for services that are being, or will be performed by the community. The citizen can help by paying promptly and in full, protesting an assessment only when actual injustice has been done. The second way in which he can help is important, too. Few citizens have either the time or the training to follow the detailed financial transactions of the government. But from time to time every voting citizen is called upon to help choose the men who will govern his city, state, and nation and manage finances. It is a citizen's duty at such times to do all in his power to have the right men chosen for this important work. If money is wasted by incompetent officials all citizens suffer, both directly and indirectly; so all have a personal interest in choosing the right men for office. This means: vote wisely, and know the qualifications of your candidates for financial offices. These two duties do not fall to the share of junior citizens, who are still in school and not of voting age. But all can prepare themselves for the later duties of citizenship. They can take advantage of the opportunities afforded in school to learn how the community finances are managed, and some of the qualifications a man should have in order to be fitted for so important a duty. Thus a good foundation of knowledge can be made for wise judgment later on, when voting time comes. TOPICS FOR REPORTS AND DEBATES 1. That Tremendous Business Corporation-Our City. 2. Odd Sources of City Income. 3. Keeping the City's Books. 4. A Recent Bond Issue: Its Purpose and Plan. 5. How Our Emergency Bills are Paid. 6. The Qualifications of a Good City Comptroller. 7. How a New Street in My Neighborhood was Paid for. RESOLVED: That the city's chief financial officer should be elected by the people. QUESTIONS 1. What different sources of income has your city? Which brings in the most money? 2. Suppose your city wished to develop a municipal lighting and power plant. Explain how this could be financed. 3. What are taxes? Why do people have to pay them? 4. Explain as fully as you can exactly how the general property tax is assessed and collected in your district. 5. Have you ever known a case where an individual could not or would not pay his property tax? What was done about it? 6. What property is not taxed in your district? Why? 7. Suppose a man and his family own no "real" property, and not over the minimum amount of personal property, which is therefore exempt from tax; and they live in a furnished rented house or apartment. Do they escape all payment of the general property tax? Explain. 8. What taxes do we pay to our county government? State? National? 9. Are there any individuals on whom some portion of these taxes does not fall? Explain. 10. If possible, obtain a copy of your city's budget for a recent year. For what group of activities did it spend the largest sum of money? The next largest? Why? 11. How does your city get money to pay for new school-houses, for new bridges, for water-works, for police patrol wagons? 12. Who is the chief financial officer of your city? Of your state? Of the nation? What are their duties? 13. Have you a City Auditor? What are his duties? 14. Who is your City Treasurer? What are his duties? 15. Explain to the class how your city budget is compiled and passed. Show where the chief financial power of your city is placed. 16. State as exactly as you can how much money your city is empowered to borrow. How did you find this out? 17. Where is the city's money kept? How is it safeguarded against dishonest officials or against financial panic? 18. When did the federal government first make up a budget? Under whose direction? Why was this not done before? 19. What are “Liberty Bonds”? 20. To what extent is your state empowered to borrow? The United States Government? SUPPLEMENTARY MATERIAL 1. Report of your City Department of Finance. 2. A copy of the City Budget. 3. "Financial Statistics of Cities Having a Population of over 30,000." Published by the Census Bureau, Washington, D. C., 1919. 4. "Specified Sources of Municipal Revenue." Published by the Census Bureau, 1918. 5. Sources of Municipal Revenue in Maine," by Orren Chalmer Hormell. Published by Bowdoin College, Brunswick, Maine, December, 1918. 6. "Budget Making," by A. E. Buck. Published by D. Appleton & Co., 1921. 7. "City Government in the United States," by Frank J. Goodnow. 8. "Outlines of Public Finance," by Merlin Harold Hunter, Ph. D. Published by Harper & Brothers, 1921. 9. "The Principles of Taxation," by Hastings Lyon. 10. "Shifting and Incidence of Taxation," by E. R. A. Seligman. Published by Lemcke, Buechner, N. Y. 11. "Budget Making in a Democracy," by Edw. A. Fitzpatrick. |