Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-02-10
TAXES FOR THE POOREST
MR.. THOMAS G. SHEARMAN DISCUSSES
THE COMING BlLLIoNAlRE.p


few rich men in the United States has,
within the past twenty-five years, re-
suited in producing fortunes of unheard
Of proportions. The fabulous wealth of
CrOesuss which was the marvel of the
old Greeks, was nothing in comparison
with the vast fortunes of our Astors,
Goulds and Vanderbilts.
1t is not surprising then that we are
asking ourselves: How rich will our rich
men become? Shall we not at some time
have Millionaire, and astonish ourselves
and all the world besides?
In the January number of The Forum
magazine Thomas G.. Sherman, the emf
nent writer on social and economic aues-
lions, has remarkable discussion on this
subject entitled The Coming Billion
are" When Mr.. Sherman claimed in
the same magazine more than year ago
that half of the wealth of the country is
owned by 40, 900 families, and that three
tourths OF tits owned by fewer than ESQ.,
900 families, his statements were disputed
by many. There was much controversy at
the time over list of some seventy rich
men given by Mr.. Sherman as worth
from 500, 900, 900 to $3.50, 000. 600 each.
1t was claimed by many that the fig
ures were exaggerated, but in the ,Janu-
airy Forum Mr.. Sherman contends that
the list was IN the main correct.
In discussing the coming Millionaire"
MIR. Sherman treats of the creation of
wealth as influenced by our present svs-
TEN OF indirect taxation, and by indi-
rect taxation he does not mean the tariff
tax exclusively, but includes taxes upon
banks, bonds. merchandise. lands. CAPT
tai IN manufactures, railroads. etc, in
ali OF which the tax Is shifted back TO
the actual user or consumer. This trans
ferT1ng OF taxes brings 1t to pass that on.
tax system not only discriminates in
favor of the holders of large capital, but
1t actually puts money into their pockets;
that tine poorer people not simply pay
more than their due share of taxes to
the government, but they pay in addition
a tax to the rich which much more than
makes up for the taxes which the rich
themselves pay.
How this result is brought about Mr..
Sherman seeks to show by a series of
tables. The total wealth of the country
he estimates at about ST.. O00, 600. 600. or
nearly $1,000 per head of the population.
The division Of this wealth is as follows:
Families Wealth
Rich........ ......... $4,000 1885,, 900 900
Middle. ......... 1,2O00O0 75O0Oaa 900
working --...- .......il, 90, 0UO 1i.S15 0Ol 600
Totals. .13OO2,OOO So. 81, 900, ooo
The production of wealth in 1890 is nut
at$l3,OOO,OO0. After allowing per cent.
OF this for repairs and requirements the
net income is divided as follows:
Families. Average Income. Total Income
1S0oOO..... 1890 $4,000 $500 900 900
I,@pUo 1890 1900 600 600
lIsoDOJO. $50 $3.50 ODO go
These figures become all the more
striking when the matter OF saving
money Is considered. If there were no
taxes the rich could easily save two
thirds of their incomes, while the other
classes could scarcely save one-ffth of
theirs. Bat taxes, especially the tariff
taxes, are levied upon the expenses of
the people, and thus bear much more
heavily upon the poorer classes than upon
the rich-touching four-fifths of the in
come of the average poor man and only
one-thlrd Of that OF the rich man. All
forms OF indirect taxes thus levied upon
expenses are supposed by Mr.. Shearman
to be about 10 per cent. This would
therefore take from the two poorer
classes $3.50. 900, 900 year, and from the
rich only 1925, 000, 900 But these two
sums represent taxes which go to the
government and those which go to indi-
viduals. Mr.. Sherman estimates that
one-third Of the taxes paid by both classes
go to a small section Of the richer class.
This would give the following as last
years saving of the rich and other classes:
SAVINGS OF THE RICH.
Natural savings ....... S8.G0) 900 900
Deduct taxes, etc. 900. S225. 000. 900
Add profits upon tax
system. ............... 400Oo0OO I75,OOOODO
Total ...-..---.....- S3I75,OO0000
SAVINGS OF OTHER CLASSES.
Natural savings ..................sl,6 c0, OooO0O
Deduct taxes. $50 900 600
Net savings Observation-Disclosures. SG4O 900 900
The yearly gam to the rich over and
above other classes is sufficient to weld
IN thirty years. if placed at > per cent.
ViL4iFDtLLI Interest, an amount equal TO
NE entire present wealth OF tbs country.
But If a system of taxation were intro
duced. according TO which the people
would have to pay taxes on their pos
sessions rather than on their expenses.
the result would be far different. Mr..
Shear1nan estimates that such system
would require about / 10 per cent. on
all property at its full value Such a
tax would be paid as follows:
10000 rich would pay ......s $50 600 900
E2SsU,oOo others would pay rs 900
1t is Mr.. Shearmans opinion that the
substitution of system of direct taxa
ton would be worth $3.50. 000, 900 year
permanently to the middle and working
classes. An individual case is used to
illustrate the workings of the two sys-
TENS. At present the owner of $40, O0O,-
600 need not pay more than SIS 900
year In indirect taxes; while, if he is the
protected owner of mines and factories,