a part of the loan, sometimes by redeeming a certain part
annually, sometimes by accumulating a sinking fund until that amounts
to the whole debt.

The minor divisions in the United States are thus constantly creating
debts at the rate of about $2,000,000,000 each year and at the same
time paying former debts in instalments, in a total amount somewhat
less than this. In the case of some municipal investments which are
commercial enterprises (such as those supplying gas, electricity, and
water), these annual payments can be made out of the profits; in the
case of others, the payments come from special assessments upon
the owners; and in most other cases they are collected by the usual
methods of taxation. In America, a large part of these costs are, by
the law of special assessments, placed upon the owners of adjacent
lands, whose outlays are usually more than offset by the increased
value of their lands as a result of the improvements. In this case
also, the present investment is in anticipation of the future incomes
which the owners of the improved lands will get.[3]

Sec. 8. #Revenues from taxation.# Much the largest part of the receipts
of most governments, apart from loans, and in many cases nearly all
such revenue receipts, come from taxation. Tax (as a verb) meant
originally to touch or handle, then to estimate or appraise, and then
to charge a burden upon some one, especially to impose a payment of
services, goods, or money upon persons or property for the support
of government.[4] _Taxation_ is the legal process of taking income,
services, or wealth from private persons for public uses.

Taxes are of various kinds, but they always are incomes, or wealth
representing future incomes, transferred from private ownership of the
taxpayers to the government. In rare cases, more than the net current
income of a certain kind may be taken for public uses. As economic
income has many sources, it may be intercepted at many different
points, and taxation may take various forms. The differences are
so manifold that it is difficult to classify particular taxes
satisfactorily.

Sec. 9. #Forms of taxation.# The following are the forms of taxation most
frequently referred to.

(a) The simplest form of tax is a _poll tax_, a uniform amount payable
by every person of the taxable class. This form of tax is being
less and less used in America and now amounts to little more than
$17,000,000,[5] this being only .6 of 1 per cent