The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1891-02-06

rhomas q. shearmnn Discusses 1.-The Conn
Ing 1BiDiionnlro" M striking Figures -
Wealth and Isxntson nurdens f"r
Workers and Millions For l~dier~-indl-
rect Taxes VIII Create the Millionaire
Are we 70 have a billionaire? We al
ready have by far the richest men In the
world. We have one man worth $780,
10000 and a church corporation worth
the same mount. We have five persons
worth each $780, 900, 900 or more. We have
nine persons and estates worth each
5000 o 900 or more, and six worth Ss0.-
900. 900 or more.
Why should we not have also a bill
lionaire? Shall we not rave one? Such
arc the questions which Thomas q.
Shearman discusses i'm the Forum mag
azine for January. and his answer II
that the Millionaire Is certain to come II
our present system Of indirect taxation
continues In force long enough. A mil
l~ionaire now worth 500. 900. 900 has but
70 sit still and invest his interest judi
ciously. and in less than forty years we
will have a new wonder Of the world
; Millionaire.
Mr.. ShearmaA showed in the same
magazine for November. 1859. 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:
CiassL Families Ue0ft.
Rich .*--..-.-.-. l>,.on $3.50. eon.oo
Middle ........--... 10000 5~.ynep."oo
worklng-....-.. lly6zo.vo lI.2i5.oco.0o
The wealth produced in $500 is csti-
mated, according TO the census returns
Of 1850, at about SIS. 900, 600. About four
per cent. OF this must be allowed for
repairs and replacement; and after this
deduction is made the net product %
wealth for 1890 was distributed approxi-
mately as follows:
Fam,lies. Average Increase. Total Tso~esse.
5000. .......-.. Sx5.Oc0 s.Jn.Vo.eoo
1,2pv.ro0. l.x51 l.Sv.vusrp
u.sl0.Ooo ......-.... so .Jo.oo.oo
Leaving taxation out Of the account,
the $50. 900 rich families can save about
two-thirds Of their income, while the
rest Of the families can not save more
than about one-fifth of theirs But our
taxes are mainly levied. not upon prop
crty owned, but upon money spent
About scven-eighths Of our taxes are
Indirect. Even local taxation upon
banks, mortgages, merchandise and
houses, which is usually reckoned as
direct taxation. is in reality Indirect,
since these taxes are shifted back upon
the final real tax-payer-the and
consumer. The tariff tax is Of course
the most familiar form Of indirect AKA
ton. but il j. mol The only indirect tex.
Mr.. Sherman estimates that all TIL
indirect taxation upon expenses aver
ages about Is per cent This would
make the tax burden borne by the is0..
600 r..a families. which spend only ms
third of their income. S,25. 600. 900 for
1870: and that Of the other families,
which spend four-ffths Of theirs. $500
600. 900. Mr.. Sherman estimates that
about one-third Of the whole amonni
paid in taxes by rich and poor goes not
TO the Government but to a small sec
ton OF the richest class. In this way
about $500, 600, 900 IS restored 70 this
class for the ss25. 900. 900 which it pays
in taxes.
The annual savings Of the two great
classes would therefore be as follows:
ANNUAL sAvIxes or THE RICH.
Natural saylngs..-.- .-.----S ,ovo.o00.oo
Deduct taxes. etc.....- <z25. 100000
Add profits from tax
system~.-....-.... 900 oco.coo
- l~.s.ooo.oo
Total S.i-5.0c.0y
ANNUAL SAVINGS OF OTHER CLASSES.
Natural savings 1870. 1000
Deduct taxes. c.......... -o.coo.Vp
Net savings e40.oeo.0,
The gain here Of the wealthy clas'
over other classes j. enough TO equal il
thirty years. II placed at 5 per cent
compound interest. the present tota
wealth Of the country.
Such are the results Of indirect taxa
ton. How would the two classes stan'
IL a system Of direct taxation were in
troduced? Mr.. Shearman thinks tina
under such a system a tax Of m AM