Wyandot County Republican. [volume] (Upper Sandusky, Ohio) 1869-1903, 1870-06-17

comes only fsom those whose in
comes exceed 81 900. wish to
state to him as a fact that l have
received complaints from gentle
man who represents a very large
body of widows and children in
some of our cities, all of whose in
comes are. less than $1,000, and
every one of whom has had to pay
an income tax upon dividends and
interest which they receive from
their stocks and bonds. -
Mr.. SHERMAN. This will bring
me to another branch Of the argu-
ment which I intend to notice.
repeat that The maintenance of the
incoms tax is an absolute neces-
sity for any system of internal tax
es If the Senator and House
should determine after full consid-
Grafton to repeal the income tax /
shall favor the repeal of all the tax
es upon consumtion that bear npon
the great masses of the people. Il
do not believe there is any such
complaint about the income tax. If
had my own way | would retain
the income tax at five per cent. ma
! king such notifications as would
afford the proper exemptions; l
would maintain the income tax at
| five percent. on all incomes above
1000 dollars and then throw off
these taxes, upon consumtion that
do Cypress the poor, and do take
coppers out of the dollars Of people
who earn them by their daily
work. - 3
EXEMPTIONS.
Now, the operation Of the law
mentioned by my honnrable friend
from Pennsylvania is unjust, and
ought to be corrected by the pro
posed measure. The operation OF
the income tax apon Government
employees is unjust, because it does
not put their income on the same
footing as other incomes. The in
come derived from corporations is
now subject to tax without the de-
ducticns allowed to other incomes.
Why is that? 1t is because it is
more convenient for the Govern
ment to collect the tax from cor
porations, and yet in that way we
do levy an income tax upon the in
come of the widow and the poor
derived from corporations, and do
an injustice. The iucome law ought
to be corrected in that particle. If
the Senate is willing to go that far,
1 should be very glad to see it cor
rected, and to allow all incomes,
whether derived from corporations
or from interest on bonds, to go in
to general income return and collect
it all directly from the person who
receives it, giving all an equal ex-
emption.
1t has been proposed, and is pro-
posed in the House bill, to increase
the exemption from 1000 dollars to
800 dollars. / do not think that
is right. It may be popular
There are now two hundred and
seventy thousand people who pay
income tax. If the exemption is
raised to 1,500, dollars only about
one hundred and seventy thousands
will pay income tax, and one hun
:: dred thousand people will probably
be relieved from the tax. But
. should they be? Is. it just? Is il
, right? There is no reason for any
| exemption, except the fact that tbs
incomes Of those who receive less
than 1000 dollars per annum are
necessary for their daily consump
. ton. They pay taxes OIL their con
sumption which fully make up theil
+ share of the 1000 doilors exemp
, tions. When you go above 1,00(
dollars you reach region where
persons are passing rich, ''as Gold
smiths vicar says, on ION f4O .
s year." They are indpendant wher
they have 1000 dollars net income
after paying taxes and aftel
e deducting all the exemptions provi
9 ded by the income law. I do not
Il therefore, see any justice in raising
n that exemption, although 1 can Sc
then it would be very popular witt
the one hundred thousand well to d.
d people who would thus be relieve,
S from the income tax, throwing tn
$ whole burden upon those who ar
II of the wealthier class.
e If the income tax be now main
tained at the rate proposed by til
q committee, three per cent on al
0 incomes above 1,OOO,dollars inclu
p ding in the general income, income
n derived from corporations and fror
n all other sources, the people wi
r gradually become accustomed to th
/ tax, and those who are called upo
e to pay it, will pay cheerfully.
: will be mode and manner of equal
sr izing incomes from different sources
t. and will yield us from thirty t
II forty million dollars annuity, probs
n bly, enough to pay the pensionel
II who are now dependent upon OF
y bounty.
70 / have thus stated, I know ver
y imperfectly, the general ideas tn;
: Influenced the Committee on Finant
% in reporting this bill. The sui
N stannce of the whole is contained
J. the table which has been laid O
!, the desk of Senators, and which
D will add to my remarks. We prt
d pose to repeal about two thirds {
~ the number of internal taxes, lea
ing nothing but:the taxes, on whiske
q tobacco, fermented liquors, income