Chapter XVIII: Introduction

I. Recently the question of an income tax has aroused great interest.

A. An amendment to the constitution has been proposed recently
which will provide for this tax.

B. The proposed amendment has caused the matter to be considered
carefully by the public.

C. Many eminent men have given opinions regarding the advisability
of adopting the proposed tax.

II. The following definition is adopted,

The progressive income tax is simply a tax levied upon the income
of an individual, the rate of tax increasing as the amount of
the income of the individual increases.

III. The contentions of the affirmative and the negative are as
follows:

Those who advocate the adoption of Those who oppose the adoption of this income tax support the this income tax support the following contentions: following contentions:

A. The income tax is A. The income tax is not
necessary. necessary.

B. The income tax is B. The income tax is
practicable. impracticable.

C. The income tax is just. C. The income tax is unjust.

IV. Through this clash of opinions we reach the following issues:

A. Is the income tax necessary?

B. Is the income tax practicable?

C. Is the income tax just?

PROOF

I. The progressive income tax is necessary, for

A. It is necessary in meeting national exigencies, for

1. In case of war the customs duties would cease or be
impaired and the government would be without another source
from which to draw revenue were not the income tax
available. (Norris Brown, U. S. Senator from Neb. in
_Outlook_, 94: 217.)

2. Governor Hughes of New York believes this power (that of
levying the income tax) should be held by the Federal
Government so as to equip it with the means of meeting
national exigencies. (_Outlook_, 94: 110.)

3. Refutation. The argument that the income tax is not
necessary on the grounds that other taxes can be made to
cover all necessities is unsound, for

a. In case of war with a great commercial nation when the
country would be in the greatest need of revenues, the
collection of imposts would cease or be materially
diminished. (Justice Harlan of the U. S. Supreme Court
in his dissenting opinion in the Pollock Case.
_Outlook_, 94:217.)

II. The progressive income tax is practicable, for

A. Experience shows it to be practicable, for

1. During the great Civil War millions of dollars were
collected from this source when the government was in need.
(Norris Brown in _Outlook_, 94:216.)

2. It has proved practicable in England and Italy. “Income
taxation gains in economy and productiveness and wins
increasing approbation as the years go by.” (Professor Ely,
Professor of Economics in the University of Wisconsin, in
_Outlines of Economics_, p. 635.)

III. The progressive income tax is just, for

A. The tax bears upon the individual according to his ability to
pay, for

1. It tends to relieve the poor from taxation and place it
upon the rich who are able to bear it. (Philip S. Post in
_Outlook_, 85:504.)

B. It makes each individual bear his share of taxation, for

1. Income is as good, and perhaps better than any other single
measure of ability to pay and the tax is in accordance with
this idea. (Professor Ely in _Outlines of Economics_, p.
635.)

2. The income tax reaches certain members of the professional
class who under existing laws largely escape taxation
through lack of tangible property. (Philip S. Post in
_Outlook_, 85:594.)