Sharp County record., 1891-02-12

continues III lOrce long enough. A mil
lionaire now worth 500, 900, 900 has but
to sit still and invest his interest Judi
ciously, and in less than forty years we
will have new wonder, OF the world
& Millionaire.
Mr.. Shearman showed in the same
magazine for November, 1880, that the
total wealth of the country averaged
about 81, 900 per head of the population.
On this basis he shows in the current
number of the Forum that the present
distribution of wealth In the United
States is as follows;
Glass Families IYeon.
KIch,''','-'"."... $4,000 s43,36 200, 900
Mddle e'',......... 100000 $500 OOO, ,OCO
NorkMg".."...... 100000 11,215, 5,0oO, 900
The wealth produced in 1890 Is esti-
mated, according to the census returns
OF 1880, at about $4,000, 900. About four
per cent. of this must be allowed for
repairs and replacement; and after this
deduction is made the net product of
wealth for 1890 was distributed approxi-
mately as follows
fam'Hes. drerage Increase Total Increase.
aSo dSo'0|" Ooo |o"......,.,S $4,000 4,5OO,NW, 900
i,ZUe,eVO. ........... l250 1900 900 600
U6S0, 900. ........... $50 q 5Oo Of0 ono
Leaving taxation out of the account.
the 100000 rich families can save about
tWo-thirds of their income, while the
rest of the families can not save more
than about one-ffth of theirs. But our
taxes are mainly levied, not upon prop
rty owned, but upon money spent.
It seven-eighths of our taxes are
:. Even local taxation upon
- Yortgages, merchandise and
hhich is usually reckoned as
aXation, is in reality indirect,
these taxes are shifted back upon
the final real tax-payer-the worker and
consumer. The tariff tax is of Course
the most familiar form of indirect taxa
ton, but it is not the only indirect tx.
MIR. Shearman estimates that all this
indirect taxation upon expenses aver.
ages about 10 per cent. This would
make the tax burden borne by the 1SO,-
900 rich families, which spend only one
third OF their income, 1925, 900, 900 for
1890; and that of the other families.
which spend four ffths of theirs, $780,
100000. Mr.. Shearman estimates that
about one-third of the whole amount
paid in taxes by rich and poor goes not
to the Government but to II small sec
'lon of the richest class. IN this way
about SiO0,000,00 is restored to this
class for the 1926, 900, 900 which it paws
in taxes
The annual savings of the two great
classes would therefore be as follows:
ANNUAL SAVINGS OF THE RICH.
Natural savings, So 900, ,OOo, 900
Deduct taxes, etc, 1925 100000
Add profits from tax
systcm..,.,.,....,,..., 400 000G01
'otul ''''''' 8,115 600, 900
ANNUAL SAVINGS OF OTHER CLASSES.
Natural savings. 81 800 zoo. 600
Deduct taxes, etc.........,..,...,. 9G0O0O,OOD
Net savmgs"',,.....,,.,.ur,,$ 6iO 900
The gain here of the wealthy class
over other classes is enough to equal in
thirty years, if placed at per cent.
compound interest, the present total
wealth of the country.
Such are the results of indirect taxa
tion. How would the two classes stand
\ II system of direct taxation were in
troduced? Mr. Shearman thinks that
under such q system tax of one and
one-iifth per cent. on all property at its
r..1
full value would be sufficient. The
burden borne by each class would there
fore be as follows:
10000 rich would payu..........S $500, 900 900
l2,S2O,OOo others would pav,....... 22S,Ooo,OOO
From these figures Mr.. Shearman con-
cludes that system Of direct taxation
would result in an annual saving to the
middle and working classes of $3.50, ,0OO,-
900 for all time; and this is only part
OF the salient benefit from the direct
System,
The workings Of the two systems may
be illustrated by taking the case of a
1nan worth Sl0,O00,00 Under the
present system he would not pay more
than $500 year, while ut the same
time living in princely style. But If he
Is one of the protected classes, II he
owns mines or factories, the tariff taxes
nnd other indirect taxes will often
bring him as much as 100000 q year
from the pockets Of other people. Now
Pow would this pampcred millionaire
fare under u system Of direct taxesp
he would pay $4,000 year, and
would levy no tribute upon poorer pco-
Pie,
II the present system, therefore, il to
n continue, the coming Of the billionaire
h u certainty; and with him will come,
on the other hand u million paupers,
The question Is, will the present sys-
tem continued Mr. Sherman is confident
that II will not The Republicans have
made the permanent expenses Of the
isove : ment 80 great that deficit of
~ FOOois thing of the near future
4seover, no system of tariff taxation
7san be devised which will Weld suhi-
cient revenue without re-imposing the
'M on sugar, But no political party
WV hazard such step after the people |
nuNp lpupupl thn -