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manufacturers of alcohol pay the excise tax in bulk, that is on the number of gallons produced, the manufacturers of cigars and tobacco have to attach to each separate package a distinct internal revenue stamp.

These stamps are purchased from the internal revenue collectors, appointed by the Government to certain districts. The stamps show at a glance that the proper tax has been paid, just as the postage stamp affixed to a letter proves that the price for carrying it and delivering it has been paid.

As it is a penal offence to use a postage stamp a second time, so it is a punishable offence to attempt the use of a cancelled or torn internal revenue stamp.

If demanded, the Government will give a receipt for the sum received from any one for considerable sales of postal or revenue stamps.

STATE TAXES

State taxes, as has been stated, are levied on real and personal property. Some states have in addition a poll tax. This is levied on the individual without any regard to his property, and a receipt for it may be a requirement before a citizen is permitted to vote.

Of course the real estate and personal property taxes are not the same in all the states, for each state must raise every year the sum necessary to meet its own special requirements.

The intention of all tax laws is to have every citizen’s contribution bear the same proportion to the whole amount to be raised that his possessions bear to the aggregate property of all the owners in the commonwealth.

EXEMPT FROM TAXES

All our state laws exempt from taxation certain kinds of property.

The state cannot tax the property held by itself for the common use.

The buildings and related properties of religious bodies and societies are not taxable.

Such educational institutions as colleges, seminaries, and private charities are not taxed.

Cemeteries and other places where the dead are disposed of are not taxed.

County buildings, city parks, public schools, penal institutions, fair grounds for public use and similar property is never taxed.

INSUFFICIENT TAXES

There have been times in the life of the Government, and in the building up of the states, when the funds necessary for maintenance from taxes, heavy though these have been at times, have not been sufficient to meet the essential expenditures.

This was particularly the case with our Government during the trying days of our Civil War.

States entering on great public works, for the benefit of the commonwealth, frequently cannot raise the necessary money by the usual forms of taxation.

In these cases loans have to be made, that is the Government and the state go out and borrow from those who have it to spare, the necessary money.

The Government, the state, and it may be the city or county, gives to the party providing the money what is known as bond or bonds, each of a fixed amount and bearing a fixed rate of interest, payable as a rule semi-annually.

PERSONAL PROPERTY

There is no form of property so easy to assess for the purpose of taxation as real estate, that is the land and the buildings, for the last selling value of this property is a matter of public record, and then the assessors, who should be men of honesty and good judgment, are generally posted as to the value of the property under consideration.

When, however, it comes to the taxation of personal property, which means any kind of property that can be detached and carried about, it is a different matter.

Just as many people, otherwise regarded as honest, do not think it a great wrong to get the better of the Custom House, so many reputable people are inclined to revolt against the tax on personal property and to conceal their actual possessions from the assessor, nor is this peculiarity confined to the poor.

Any man may be legally compelled to swear to the accuracy of his statement, and if it is found that he has knowingly sworn to a false statement, he may be brought to task for perjury.

What is known as β€œpersonal property” varies in many of the states.

Personal property generally includes, merchandise in possession; all fixtures, all furniture in home, offices, and factories; all live stock, all money on hand and in banks; other men’s notes, not transferred; all stocks and bonds and other forms of security.

TOWN TAXES

Townships or counties, if properly authorized by charter or the votes of the people, may levy special taxes for special purposes within the limits of their own jurisdictions, or they may in the same way sell bonds to carry out some work that has been decided on for the common weal.

Two or more towns, or counties, may join in the same way to carry out a project of benefit to both, provided that the burden of the undertaking be equitably assessed.

PAYMENTS

All tax bills are due and collectable on presentation, but this is never enforced.

A time is, however, fixed beyond which payment cannot be deferred.

A sufficient amount of any property may be sold at auction to satisfy a tax bill.

Of old, and still in some places, the road taxes were paid in cash, but more frequently by work on the roads, either by the individual man, or in connection with his team, each day’s work of one or both being fixed at a regular rate.

TAXING CORPORATIONS

The state does not tax the individual members of a corporation for property held in common. The same result is secured better by taxing the corporation as a body. This applies to banks, railroads, and incorporated manufacturing establishments.

Savings banks are taxed lightly. Every depositor is liable for a personal property tax proportioned to the amount of his credit.

To make collection easy the savings bank always pays the amount of this tax in bulk, and then charges it to the expense account of the establishment, so that indirectly the depositors pay after all, as their dividends are reduced by just the amount of the tax.

TAXES IN GENERAL

When a man owns property in different towns, counties, or states, he is regarded as so many individuals, and must pay each as the local demands require. No matter where a man’s personal property is placed, the rule is to tax him for the whole at the place of his usual residence.

The landlord and the merchant each pays a direct tax to the collector, but it would be a business error to think that in so doing either or both is carrying more than his share of the total taxation.

The landlord keeps in mind the added expense when he comes to adjust leases with his tenants. The merchant, who pays taxes on his stock and so adds to his expense account, should not be blamed if he keeps this in mind when he fixes the selling prices of his goods.

THE RETURNS

Taxes duly paid, honestly collected, and properly expended should never be regarded as a burden.

From no equal expenditure of money do the people get so much good.

The public schools, the public highways, the protection of life and property, public hospitals, public libraries, residences for the old, the blind, the orphaned and the insane, as well as secure places for the lawless, are built and maintained by the taxpayer.

As a rule all these things are done honestly and well, notwithstanding the outcry to the contrary.

If there be dishonesty in places, it is the fault quite as much of the voter who selected him as of the official culprit himself.

We must take all the responsibility of our agents, whether they be public or private.

Every good citizen should feel that his public duty is an important private business.

CHAPTER XVIII CONTRACTS, LEASES, AND GUARANTEES

The law books define a contract to be β€œAn agreement between two or more persons to do or not to do a certain stated thing or things, for a consideration.”

The consideration is a vital part of every contract.

There can be no binding contract without a consideration.

The other requisites of a contract areβ€”

1. It must be possible of accomplishment. 2. It must be in accordance with law. 3. Its performance must not injure the public. 4. The parties to a contract must be competent to do the things to which they pledge themselves. 5. A drunken or an insane man cannot make a contract. 6. All parties to a contract must be agreed.

THE CONSIDERATION

No contract can be held as binding where the consideration is not named.

A promise, verbal or in writing, to do something for a certain party, cannot be enforced.

A promise to do the same thing for a stipulation named is a contract and may be enforced.

A gift is not a form of contract. Once made it cannot be legally taken back.

WRITTEN AND VERBAL CONTRACTS

There are certain forms of contract which cannot be legally enforced, unless they are in writing.

1. All contracts for the sale of real estate. 2. Contracts that are not to be performed for a year or more. 3. All contracts, to answer for the debt and obligations of another, must be in writing.

If the contracting parties put but a part of their agreement in writing the law will recognize only the written part. The whole must be in writing, or the agreement will not hold.

Verbal contracts are not safe.

Although the law does not require even contract to be in writing, yet, as it never declares that a contract must be verbal, it is the part of prudence, wherever possible, to put every contract in writing.

Owing to defects of memory even honest men may, and frequently do, disagree as to the terms of a verbal contract.

Because the party with whom the contract is made is a close friend, one is apt to depend on a verbal agreement, but the closer the friend or relative, the more reason there is for an exact written contract, if we would keep the friend.

FORMS OF CONTRACT

The law is never specific as to the form of contract that may be used.

It is not necessary to draw up the contract with the formal accuracy of a real estate deed.

Any one with good sense and a fair common school education can draw up a contract that will hold.

Know what is required, then state the facts simply.

Contracts need not be sworn to or even witnessed.

KINDS OF CONTRACT

Every note, mortgage and other form of obligation is a specific contract.

A lease is a form of contract between two people, known as landlord and tenant, for the use of real estate for a period and at a rental specified in the document.

A verbal lease may be made for a short period, but if for a year or more, it must be in writing.

A lease should state when, where and to whom the rent is to be paid.

Each party to a lease, or other form contract should have a copy.

If the premises rented should become unusable by fire or any action of the elements the tenant is still liable for rent, unless there is a special clause in the lease providing for such a contingency.

A tenant cannot, without the written consent of the landlord, use the rented premises for any other purpose than that stated in the lease.

AS TO REPAIRS

In some states the law compels the landlord to keep the premises in habitable repair, but this does not seem to be the rule. It should be decided, where there is doubt, before signing the lease.

Where it is agreed that the landlord shall keep the premises in repair, and, after due notice of the fact, he fails to do so, the tenant may himself make the repairs and deduct the

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