Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1879-06-12
The Income Tax.


annual rovcnuo of the government was derived
from an income tax. lis chief feature was
that it imposed OH property share of tho bur-
dens OF government, and did not lcayo them TO
be imposed solely on tho consumption of com
moditics. tax Of this kind is just and cqui,a.
bic and falls upon those who, enjoying the pro-
lection of government, should share its burdens
and who hayc tho means to do this without
hardship. Besides, through an income tax
alone can the large bondholdcrs of the govern. .
mcnt bo reached, rs their bonds arc exempt
from taxation. These mon have purchased and
hold United States bonds at from forty to fifty
conts on the dollar, and thoy derive from them
an annual interest in gold, for oil of which
they arc required to pay no tax.
The first income tax was passed by Congress
in July, 1862, and took effect in the year 1868.
lttaxod oil incomes over 5000 and undor S 0, OO0
at tho rate Of threo per cent, and OIL all over
$4,000 it levied Tux of five per cent Under
THIS law in 1864 tho income tux realized to the
government $l5,O00,0Oo. In 1865 the law
was amended, increasing the threo per cent. tax
to five per cent. and tho five per cent. tax TO
ten per cent. upon tho excess of incomes over
$4,000. In l86d-G5 the tax realized S2l, ,OOO,-
600, and in l8G5-G6, after tho war had closed,
tno revenue from tho income tax amounted 10 n
sum exceeding $G0,000, 900, and in tho year
following to sum exceeding SGT, 100000. In
looi tho exemption was increased from 5000
TO - ,O0O and the tax fixed ut five per cont on
oil incomes in excess Of ST. 900. Under this
modified law there Was collected in 1868 over
$s2,0OO,0 900, in 1860 over $4,000, 900 and in
1870 $27, 100000. The income lax in 1870
was continued for ono year, the exemption being
increased TO S2,oO0 and tho percentage to Two
ana hali per cent. In the meantime property
holders began to agitatc tho repeal of the law,
more, says Commissioner Wells, because of the
heavy rate charged than from any objection to
the tax itself. In his report in 1860 he recon-
mendcd q reduction of tho tax to three Der cent
on oil incomes in excess of 81 900, holding that
tlVe per cent. was too high for revenue purposes
and moro really than any other nation had eyer
imposed, except in times Of war or extraordinary
national exigencics. Commissioner Wells, in
his report, stated further, 'that through an
income tax larger proportion is contributed to
the revenue by tho classes best able 10 afford it
than by any other method Of taxation whatever.
Ihcsc classes owe most to The protection Of tho
government, and it is certainly wide depart
uro from the true doctrine and methods of
taxation that they should be exempted from
the burdens of its support, with tho single
exception of the lax OH consumption, through
the tariff, which they bear in common with tho
poorest in the community" Attention was
called to the fact that in 1868 tho lax was maid
ny only 100000 persons out Of 10000, 600, and
th"t the returns of these persons showed nm ag-
gregato income of $800,e0000O This shows
that out of d0,000,000 citizens only about
l,ooO,OOo were interested in tho repeal of tho
tax. Notwithstanding these facts money car
riod tho day and the tax was repealed March
81, 1871, ny small majority in both houses
such IS The history and such tho fruits of tho
income thx MS enforced for fcw years after the
close of The war, ms wo gathor il from statistics.
Since that time tho plan Of tho government has
been TO tax coffee, sugar, tobacco, iron and tho
numbcrless articles consumed by tho rich and
poor alike, whilo those who owe SO much to the
government for its protection are exempt from
taxation on their property or incomes. A bill
was introduced in tho present Congress to pro
vide for tax on incomes, but il has been
pigeon holed by the committee, and thcre seems
10 bc no prospect OF its passage Tho large
monicd interests Of the North in both pariics
VIII oppose snch at tax. and continue to grind out
the revenue Of tho government by duties i'm
posed on articles of necessity TO tho poor of the
land. We hope to see tho pcoplc, North and
South, rise up and demand such tax and do.
termine to vote for no man who opposes IL.
Until this is done the monied interests will unite
70 defeat thisjust legislation and will continue
TO impose heavy burdens on the great mass of
the people by taxing the consumption Of all ar.
ticles ofconfort and necessity.