[Sidenote: The rate of taxation.]
After the assessors have obtained all their returns they can calculate
the total value of the taxable property in the town; and knowing the
amount of the tax to be raised, it is easy to calculate the rate at
which the tax is to be assessed. In most parts of the United States a
rate of one and a half per cent, or $15 tax on each $1,000 worth of
property, would be regarded as moderate; three per cent would be
regarded as excessively high. At the lower of these rates a man worth
$50,000 would pay $750 for his yearly taxes. The annual income of
$50,000, invested on good security, is hardly more than $2,500.
Obviously $750 is a large sum to subtract from such an income.

[Sidenote: Undervaluation.]
[Sidenote: The burden of taxation.]
In point of fact, however, the tax is seldom quite as heavy as
this. It is not easy to tell exactly how much a man is worth, and
accordingly assessors, not wishing to be too disagreeable in the
discharge of their duties, have naturally fallen into a way of giving
the lower valuation the benefit of the doubt, until in many places a
custom has grown up of regularly undervaluing property for purposes of
taxation. Very much as liquid measures have gradually shrunk until
it takes five quart bottles to hold a gallon, so there has been a
shrinkage of valuations until it has become common to tax a man for
only three fourths or perhaps two thirds of what his property is
worth in the market. This makes the rate higher, to be sure, but
the individual taxpayer nevertheless seems to feel relieved by it.
Allowing for this undervaluation, we may say that a man worth $50,000
commonly pays not less than $500 for his yearly taxes, or about one
fifth of the annual income of the property. We thus begin to see what
a heavy burden taxes are, and how essential to good government it is