Question: Resolved, That the present income tax ought to be continued.

Brief for the Affirmative.

FREDERICK S. ELLIOT AND WILLIAM F. HODGE.Best general references: Bastable's Public Finance, Book IV, ch. iv; Ely's Taxation in American Cities, ch. vii; Speech of Senator Kyle in Senate, in Congressional Record, June 17-30-1894, p. 7877; W. L. Wilson on the Income Tax on Corporations, in N. A. Rev., Vol. 158, p. 1 (Jan. 1894).

I. The income tax is a just tax. - (a) It is an assessment on a man's ability to pay. - (b) It falls upon those who are best able to pay. - (1) Incomes more than necessary for actual living expenses. - (c) It equalizes the burden of taxation. - (1) The poor have to bear most of the taxes on consumption: Lalor's Cyclopaedia II, p. 485.

II. The income tax is an excellent and efficient tax economically considered. - (a) The greatest possible amount of the total tax levied gets into the treasury. - (1) Paid directly into the hands of the government: Nation, IX, 452 (1869). - (b) Its operation does not have the deleterious effect of tariff taxes. - (1) It does not affect the normal distribution of capital. - (2) It does not benefit one class over another. - (c) Its operation improves the longer it is tried: Richard T. Ely, Political Economy, 257. - (d) The incidence of the tax can not be shoved on to some other individual or other class.

III. The income tax is already well established as a tax in practice and by leading authorities. - (a) The great nations of Europe all make it a part of their fiscal system e. g., Italy, Germany, Austria, France and Switzerland. - (1) It has been constantly in use in England since 1840: Bastable's Public Finance, 427-433. - (b) The income tax is recommended by high economic authority: Ely; Wayland; Thomson; Levi; Cossa, Taxation, Pt. III, ch. ii, Sec. I; Speech of Kyle, Cong. Record for June 1894, p. 7879.

IV. The income tax is especially applicable to this country. - (a) It reaches a great class of wealth which escapes other taxation. - (1) It taps the incomes of great corporations. - (2) It levies on those who escape local, taxation.

V. The income tax is especially applicable at this time. - (a) There is a great deficit in the treasury: Wm. L. Wilson in N. A. R. Jan. '94. - (b) The income tax will enable this deficit to be made up without the imposition of further taxes on consumption. - (c) This will make possible still further tariff reductions to the advantage of consumers.

VI. The income tax will be specially valuable as a permanent part of the tax system. - (a) It is a steady source of revenue. - (b) It is an elastic tax. - (1) Its rate can be varied year by year. - (2) This will prevent a surplus or deficit; - (3) and thus prevent wasteful extravagance or strained economy.

Brief for the Negative.

W. E. HUTTON and J. A. FAIRLIE.Best general references: D. A. Wells in Forum XVII, 1 (March 1894); Lalor, Cyclopaedia of Political Science, II, 485-490; Nation, LIV, 24, 133 (Jan. 11, Feb. 22, 1894); D. B. Hill in Congressional Record, June 22, 1894, p. 7816.

I. An Income Tax is indefensible as a means of tax reform. - (a) Poor are not now immoderately taxed: Nation, LIV, 24 (Jan. 11, 1984). - (1) Tariff reductions are are on necessaries of life. - (2) Poorer classes pay but little State and Municipal taxes. - (b) An Income Tax is objectionable in administration: Mill's Political Economy, II, 426. - (1) Difficult to ascertain real incomes. - (2) Inquisitorial in nature. - (3) A tax on honesty. - (c) It is not approved by experience. - (1) Has serious inequalities: Gustav Cohn in Political Science Quarterly, IV, 56 March 1889); Consular Reports, 1888, Vol. 99, 100, p. 700. - (2) Creates discontent: Bastable, Public Finance, p. 434. - (3) It is a war tax: J. Sherman, Cong. Rec. June 2, 1894, p. 6558.

II. Indirect taxes are preferable to an Income Tax in the U. S. - (a) Income Tax unsuited for U. S. - (1) Poor Civil Service: J. A. Hill in Quarterly Journal of Economics, VIII, 92 (Oct. 1893). - (2) Unstable incomes. - (b) National government should not interfere in the domain of State and Municipal taxation: Public Opinion, XVI, 477 (Feb. 15, 1894).

III. This Income Tax is unnecessary and mischievous. - (a) Unnecessary: D. B. Hill in Cong. Rec. June 22, 1894, p. 7825. - (1) Revenues are increasing. - (2) Expenditures are decreasing. - (b) Mischievous. - (1) Class legislation: Bourke Cockran in Cong. Rec. Feb. 20, 1894, p. 2818. - (2) Unjust territorial distribution: J. A. Hill in Qy. Jour. Economics VIII. 437 (July 1894). - (3) Discriminates against personal ability; against temporary incomes.