The sun. [volume] (New York [N.Y.]) 1833-1916, 1870-07-11

inequality is most glazing, for sfT of
them pay almost one.half, or nearly
one-fourth of the whole income tar of
the country. Is there any uniformity in
that ?" nsks Mr.. SCoTT. The remaining two
hundred and fifteen Districts pay only about
as much as these twenty"
Tho injustice of this form Of taxation
is still more striking when, We ,come 10 con
slider the application Of the law to individ-
nails. Upon this subicct we cory the re-
marks of Mr. ScoTT at length:
"Take a clerk 10 ono OF the Departments OF tho
Government who has salary OF S2WO per year.
pion ceases, becnuse whom his solary is paid TO him
tie income tax is deducted from the remaining
thousand. lfne pays two or three hundred dollars
a year rent FOR his house, there is no deduction Of
that or OF taxes Tor him. Take, now, living aiong.
side Of him an owner Of real estate in this city, who
occurics for his dwelling a property worth
t4OODO, ana who has siOOOO at interest. There is
property which In fact is worth TO the owner A.
go year At per cent. Interest. Six per cent on
bis Sll0VO loaned brings hin 81 100 more. He hrs
around tins city large number Of town lots that
he has purchased for the purpose of speculation.
hodinz thom until their increase in value will real
ize to him profit, always holding them, too, untll,
under The present lazy, the two years have gone
around within which he could be required to ac-
count for the profit made upon them.
"Nhen that man who has this st0,01O Of fixed
capital in his house 10000 OF hIed clp.al a. in or;
est, and perhaps $fO,UU,more in unprCduCtiye real
estate, comes to pay bis income tax. what is tho
tesnl!t He rays nothing or the g. ig) year rent
which his house Us worth to him, ana when he comes
70 Put down the $4,000 he gets in interest UPON the
sloVOO Of mapsy lie has loaned or on Goyernmeni
tie $1,000 house IN Which he lves p'' he uP de
ducts from II tie tar upoa the i40OOJ Of unproduc.
i've los and thus, by Tue deduction d MS taxation
tsO0O year. and in most instances swallows It up
altogether. Bsedcs, 1t lie has bouaat Ats lands ON
RyfSiSR s@ GSHH h sa Money %
could pay six per cent. on the money and realize
twelve the lots 10 the course OF two years he de-
ducts the six cent interest lie has pail Out from
the income that he gets on lis loaned capital Thus,
in act fixed call brings down taxation 10 nothing
and tho labor Vi The body and the brain OF ,he clerk
is taxed"
The deInoralizing effect Of this mode of
taxation affords an equally cogent argument
against its porpetuatiOn. II ID a tax which
men evadc, and which they are able to evade
successfully. In fact, the very administra-
ton Of the law is based on the assumption
that every man who is called upon to pay
this tax is dishonest and the nation could
better afford to do away with the money re.
allied from this tux, than il can TO sow the
seeds OF Generalization among its people,
and sap that virtuc wlfeh is the life
of the Government itself" Besides, it is war
tax that may have been necessary to enable
us TO go on with the war but which should
not be continued after the war is over. 1t
also contains clear violation of the Con
sttution, in not .exempting the salaries of
United States Judges. Tho Constitution
provides that their salaries shall not be
diminished during their continuance in
Office. If we can tax them five per cent,
we can tax them twenty per cont, and thus
take away their salaries, and destroy the
independence of the judiciary. Moreover,
not single petition has been presented to
Congress asking that this tax shall DO i'm.
posed anew. The public sentiment is every
where contrary to it and its reenact-
ment by the present Congress is not
only o violation of good faith, violation
Of justice, violation of sound public policy,
but also a violation Of that ordinary pru.
dence which should prevent the representa-.
tives of party from committing political
suicide.