Poll tax

A poll tax, head tax, or capitation is a tax of a uniform, fixed amount per individual (as opposed to a percentage of income). Such taxes were important sources of revenue for many governments from ancient times into the 19th century, but this is no longer the case. There are several famous cases of poll taxes in history, notably a tax formerly required for voting in parts of the United States that was often designed to [[polls" is a common idiom for voting (deriving from the fact that early voting involved head-counts), a new folk etymology has supplanted common knowledge of the phrase's true origins in America.

United States

A poll tax in the sense of capitation plays a significant role in the history of taxation in the United States and the adoption of income tax as a significant source of government funding. However, the second meaning of poll tax, namely a tax on voting, is more widely known in the US today. Recent debate surrounds whether citizen purchase of sometimes costly state ID acts as a poll tax, keeping poor voters out of elections.

Capitation and Federal Taxation

Main article: Taxation in the United States

The capitation clause of Article I of the United States Constitution, reads "[n]o capitation, or other direct, tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken." Capitation here means a tax of a uniform, fixed amount per taxpayer. Direct tax means a tax levied directly by the United States federal government on taxpayers, as opposed to a tax on events or transactions.

The United States government levied direct taxes from time to time during the 18th and early 19th centuries. It levied direct taxes on the owners of houses, land, slaves, and estates in the late 1790s, but cancelled the taxes in 1802.

An income tax is neither a poll tax nor a capitation, as the amount of tax will vary from person to person depending on each person's income. Until a United States Supreme Court decision in 1895, all income taxes were deemed to be excises (indirect taxes). The Revenue Act of 1861 established the first income tax in the United States, to pay for the cost of the American Civil War. This income tax was abolished after the war, in 1872. Another income tax statute in 1894 was overturned by the Supreme Court ruling in the Pollock v. Farmers' Loan & Trust Co. case in 1895. In Pollock the Court held that income taxes on income from property, such as rent income, interest income, and dividend income (but not income taxes on income from wages, employment, etc.) were to be treated as direct taxes. Because the statute in question had not apportioned income taxes on income from property by population, the statute was ruled unconstitutional. Finally, ratification of the Sixteenth Amendment to the United States Constitution in 1913 made possible modern income taxes, by removing the requirement of apportionment with respect to income taxes.

The United States government does not levy capitation taxes today.

Tax on Voting

A poll tax, on the sense of a discriminatory tax which was a pre-condition of the exercise of the right to vote, emerged in some US states between the mid-19th to mid-20th centuries. After the right to vote was extended to all races by the enactment of the 15th Amendment, many Southern states enacted poll tax laws which often included a grandfather clause that allowed any adult male whose father or grandfather had voted in a specific year prior to the abolition of slavery to vote without paying the tax. These laws achieved the desired effect of disenfranchising African and Native Americans, as well as poor whites who immigrated after the year specified.

The United States government did not levy any poll taxes that blocked access to voting rights. Partly this is because the national government earned its revenues from income tax and excise taxes rather than from capitation, which required apportionment among the states. Also, this is because the national government didn't conduct elections for its offices, instead delegating conduct of elections to the states.

The 24th Amendment, ratified in 1964, outlawed the use of this tax (or any other tax) as a pre-condition in voting in Federal elections. The 1966 Supreme Court case Harper v. Virginia Board of Elections extended this explicit enactment as a matter of judicial interpretation of a more general provision, ruling that the imposition of a poll tax in state elections violated the Equal Protection Clause of the 14th Amendment to the United States Constitution. This is one of several rulings that rely on the Equal Protection Clause of the 14th Amendment rather than the more direct provision of the 15th. In a two month period in the spring of 1966, the last four states to still charge a poll tax laws had those laws declared unconstitutional by federal courts, starting with Texas on February 9. Alabama (Mar. 3) and Virginia (Mar. 25) followed. Mississippi's $2.00 poll tax was the last to fall, declared unconstitutional on April 8, 1966, by a federal panel in Jackson, Miss.

United Kingdom

The poll tax was essentially a lay subsidy (a tax on the movable property of most of the population) to help fund war. It had first been levied in 1275 and continued, under different names, until the 17th century.

People were taxed a percentage of the assessed value of their movable goods. That percentage varied from year to year and place to place, and which goods could be taxed differed between urban and rural locations.

Churchmen were exempt, as were the poor, workers in the Royal Mint, inhabitants of the Cinque Ports, tin workers in Cornwall and Devon, and those who lived in the Palatinate counties of Cheshire and Durham.

The 14th Century

John of Gaunt, the regent of Richard II of England, levied his poll tax in 1377 to finance the war against France. These poll tax payments covered almost 60% of the population, which is far more than the lay subsidies that came before it.

It was levied three times, in 1377, 1379 and 1381. Each time the basis was slightly different. In 1377, everyone over the age of 14 and not exempt had to pay a groat (4d) to the Crown. By 1379 that had been graded by social class, with the lower limit raised to 16, and 15 two years later.

The levy in 1381 was particularly unpopular, as each person aged over 15 was required to pay the amount of one shilling, which was a large amount then. This provoked the Peasants' Revolt in 1381, due in part to attempts to restore feudal conditions in rural areas.

The 20th Century: Community Charge

Main article: Community Charge

The abolition of the rating system of taxes (based on the notional rental value of a house) to fund local government had been in the manifesto of Margaret Thatcher's Conservative Party in the 1979 general election.

The Green Paper of 1986, Paying for Local Government, proposed the Community Charge. This was a fixed tax per adult resident, hence a poll tax, although there was a reduction for poor people. This charged each person for the services provided in their community. Due to the amount of local taxes paid by businesses varying, and the amount of grant provided by central government to individual local authorities sometimes varying capriciously, there were dramatic differences in the amount charged between boroughs.

This proposal was contained in the Conservative Manifesto for the 1987 General Election. The new tax replaced the rates in Scotland from the start of the 1989/90 financial year and in England and Wales from the start of the 1990/91 financial year.

The system was unpopular - rather than being based on the estimated price of a house, it was now based on the number of people living in it, with the perceived effect of shifting the tax burden from the rich to the poor. Many of the tax rates set by local councils proved to be much higher than many earlier predictions, leading to a feeling of resentment even among many of those who had supported it. People sought to protest through mass protests called by the All-Britain Anti-Poll Tax Federation to which the vast majority of local Anti Poll Tax Unions (APTUs) were affiliated.

In Scotland, where the tax was implemented first, the APTUs called for mass non-payment. These calls rapidly gathered widespread support in Scotland and then in England and Wales, even though non-payment meant that people could be prosecuted - in some areas, up to 30% of former ratepayers defaulted. Whilst owner-occupiers were easy to tax, students and those who regularly changed accommodation were almost impossible to pursue if they chose not to pay. The cost of collecting the tax rose steeply whilst the returns from it fell.

Enforcement measures became increasingly draconian, and unrest mounted and culminated in a number of Poll Tax Riots. The most serious of these happened in London on March 31 1990, during a protest at Trafalgar Square, London, in which more than 200,000 protesters attended. A Labour MP, Terry Fields, was jailed for 60 days for refusing to pay his poll tax.

The unrest over the poll tax was one of the factors instrumental in toppling Margaret Thatcher in 1990; her replacement, John Major, replaced the Community Charge with the Council Tax system, effective from 1993-94. The Council Tax strongly resembled the rating system that the Poll Tax had replaced. The main differences were that it was levied on capital value rather than notional rental value of a property, and that a 25% discount for single occupancy dwellings was introduced.

Canada

Main article: Head tax (Canada)

The Chinese Immigration Act of 1885 stipulated that all Chinese entering Canada would be subjected to a head tax of $50. The act was mostly to discourage the lower class Chinese from entering, since Canada still welcomed the rich Chinese merchants who could afford the head tax. After the Government of Canada realized that the $50 fee did not effectively eliminate Chinese from entering Canada, the government passed the Chinese Immigration Act of 1900 and 1903, increasing the tax to $100 and $500, respectively.

On June 22, 2006, the Prime Minister of Canada Stephen Harper delivered a message of redress for a head tax once applied to Chinese immigrants. Chinese-Canadian groups are told not to expect the government to offer a multi-million-dollar compensation package to survivors who paid it, widows and their children.

New Zealand

Main article: New Zealand head tax

New Zealand imposed a poll tax on Chinese immigrants during the 19th and early 20th centuries. The poll tax was effectively lifted in the 1930s following the invasion of China by Japan, and was finally repealed in 1944. Prime Minister Helen Clark offered New Zealand's Chinese community an official apology for the poll tax on 12 February 2002.

See also

• Disfranchisement after the Civil War

External links

• Middle Ages Poll Tax.
• Pictures by Paul Ross who witnessed the riot.
• The Battle that brought down Thatcher - a perspective by the Trotskyist Militant tendency.