The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-09-11

aHE TAX PRODUCTIVE IN PROPORTION TO THE
DIMMUTION OF RATE
The following article from the London limos
is instructive and inte1esting;-
IN paper laid before the House ot commons
lust before the close of the session, on tue
motion of Mr.. Motfat,, continues mp to the Stn
OF April, 1866, the annual statistics OF tue
income tax. This Is not the least interesting OF
the parliamentary returns, though 1t must oe
allowed that 1t often suggests more inquiries
than it answers. In the first place, vt affords us
some conception of the distribution OF wealth
in the country. 1t appears that the total
amount of income charged with tax in the
year ending with April, 1885, was nearly one
hundred and fifteen millions. OF this sum
nearly q quarter, or more than twenty.
seven millions, was furnished by incomes OF
less than $500 a year. Moreover, since
all returns below f200 year are subject to an
abatement of $50 III assessment, the real amount
of such modest incomes is considerably larger
than these figures would represent. AT the
other end OF the scale total sum OF thirty-three
millions is furnished by incomes above 100000
year. But the latter sum, again, cannot be
taken as representing the whole amount OF these
large incomes, as the contributions to the reve'
nue. by great landholders or great fundholders
are to be toul in other schedules than ID and
E. Taking, however, the divisions Land down
in the return, the largest sum total, or eighteen
millions, is returned by persons who enjoy in
come. OF between $4,000 and &5O,OOO year.
But they are closely pressed by the incomes
under t2OO year, which amount to seventeen
millions. The amount next in magnitude is
contributed by the fortunate possessore Of more
than $50 600 d ear. They fUrn1s h thirteen mil
| lions OF income for taxation, and it may be
! noticed that since they are just one hundred
| and thifty.threc in number, they appear TO
! enjoy an average income OF 100000 year
! EACH "a
at we advance by hundreds from G200 year
! up to GlOO0, we find that the number of persons
| in each group ana the amount returned by them
| rapidly diminish, until from being ten millions
! for the group between G200 and G300, il is only
| ole million Tor the group between G9O0 and
| fl000. The amount continues at million for
| every extra hundred a year up to G2000 From
92OOO a year to $4,000, every additional 9lOO
| furnishes only half a million, and the proper
| tionate return diminshes until we reach $4,000
year. 1t appears, in short, that the great re-
sources of the income tax lie in the small in-
comes under $500 a year and in the large in
! comes above $4,000. If we look only to the num-
Der of persons who pay the tax, the smaller
! class are, OF course, vastly the more important;
| but the degree by which they preponderate u.s.
! perhaps, scarcely realized. Out OF 347 ITO tax
payers no less than 222, 1856 are taxed or incomes
| OF less than E200 year, 3l3, ,l80 on incomes of
year include 332,477. Schedule e, which in
| cludes incomes received from public offices,
| furnishes taxable amount of twenty millions,
| and includes ll5,OOO persons. There is similar
| but more rapid diminution in the amounts con-
| tributed by the higher grades of salary, and, of
| course, there are none OF those enormous in
| comes which we have noticed in the higher
| ranks of Schedule D.,
at has always been remarkable feature in
this tax that it becomes m ore productive in pro-
| portion to the dimInution of its rate. This is
| due to two causes, which it is difficult 10 disen-
tangle. In the first place there can be no doubt
that the returns of income become more accu-
rate and more numerous as the burden of the
| mpost is lessened. Conscience is notoriously
elastic on this point, and it resumes its natural
vgor in proportion as the pressure on it is
relieved. But beyond a doubt, also, the in-
| crease in the return of the tax represents an
increase in the general well. being of the COM
munity, and this is especially the case in the
time over which the present return extends.
''The amount of income charged With tax
increased, in 1866, by more than nine millions,
and the number of persons who made returns
there is an increase of no less than 26 in the
small class of incomes above 950,OO0. The
| number increased from 10Y to 1873, or by about
q quarter In proportion, this is by far the
largest increase throughout the list. 1t is.
+, pvinaps, equa1Iy 5nitG Uhe only dlmInu-
| ton is in the number of incomes assessed under
| 9l00 year. and there is a very small increase
in the large class between 41O0 and 9200."