Federalist #35

Concerning the General Power of Taxation (cont.)  (Hamilton)

In Federalist Paper #35, Hamilton mainly concerns himself with the necessity of establishing broad areas for the assessment and acquisition of taxes and he then proceeds to explain how the interests of all citizens in such taxation matters will be adequately represented even when the peoples' representatives are chosen from only a limited number of professional categories.

Hamilton begins by contending that if the revenue needs of the national government are confined only to a limited spectrum of particular taxation revenue sources, those particular sources will suffer from the excessive public burden being placed upon them.  He again cites the contention that federal taxation should be confined to duties on imports and he again cites how this would likely lead to injurious excess.  He further explains that such a limited taxation assessment plan can unduly injure members of the merchant class, especially when conditions prevent passing a portion of the subject tax expense along to the consumer.  He also contends that such a restricted system can specifically cause increased fiscal harm to those states who rely more heavily on importation than do others.

As for representation, Hamilton denounces as impractical the notion that all of the different classes of citizens should be specifically represented in the legislative bodies.  Instead, he believes that merchants, landowners, and members of the "learned" professions are best suited to effectively represent the interests of the entire citizenry.  As for merchants, he contends that they and the mechanics and manufactures are closely aligned and, consequently, the merchants are well equipped to safeguard the interests of each of the three groups.  He believes that landowners, regardless of personal wealth or the extent of their landholdings, view things pretty much the same in regard to taxation and that their overall commonality of interests permits them to capably represent each other.  And those of the "learned" professions have the information and knowledge that allows them to serve as impartial arbiters among disputants from the "different branches of industry" and to also competently represent the broader interests of the general populace.

In concluding, Hamilton places special emphasis on the importance of the issue of taxation and he states that no other component of governmental administration requires as much information and knowledge of the principles of the political economy as does the business of taxes.  He believes that qualified people who understand these involved economic principles will be less likely to engage in oppressive taxation activities or to use taxes to overburden any specific class of citizen.

Federalist Paper #36 continues Hamilton's discussion of this general topic.