The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-11-18
IS THERE ii RE MEDY7


$50 10
HOW Graduated Income Tax yFeuld
Even Things UP. rs .ss.s'
Now that the people are awaken
ing to the appalling fact that = few
thousand corporations and individuals
are rapidly absorbing the created
wealth of the country. the question
arises: Is there remedy?
We believe there Is an adequate
aud rational remedy. says the Chicago
Express.
We dosnot coincide. withsthe, views
of those who would arbitrarily limit
the accumulation to 81. VOO. 900 or
s. COZ, 90.
Nor would We suggest any course
that would have the effect OF crush
ing out that spirit OF enterprise and
go-ahead which has done SO much to
put the United States in the front
rank Of the worlds great nations.
One Of the remedies that we would
suggest is this; Limit the lifetime Of
corporations. say to 25 years, with no
power OF renewal This would put 8
quietus upon those creatures that
have no ssouls and never die. Cor
porate wealth would then become dis.
sipated and would be scattered among,
the various natural Or legal heirs. in
about the same time as does the prop
erty which belongs to individuals. In
other words limitation would play
havoc with corporate wealth the same
that death plays havoc with individ-
ual accumulations.
Another remedy and the principal
one that we would depend upon is
this: The adoption of the graduated
income tax.
Exempt all net annual incomes less
say. than $4,000.
Levy tax of 5 per cent on, inco mes
from 50 O0J up to $iN O0o. When
$40. 900 is reached increase the tax to
10 per cent on all above $40 900 and
up to- say $50 600. On $50. 600 up
to $50 900 increase the tax to Is per
cent On all incomes from $50. zoo
to 500. 600 make it 20 per cent And
on all incomes over and above $780,
600 make the tax 25 per cent
The above rate OF increase may be
susceptible of improvement. Our
figures are principally for illustration
though our judgment Is that the
rates we have given are not far out of
the way.
The system then would work some
thing like this: John Smith. who is
merchant in a small town OF a few
thousand Inhabitants seldom makes
enough in his business over and
above all bad debts. rents local
taxes wages to employees, living ex-
penseS etc., Gall of which would be
deducted from his gross mooney to
lay aside as net income s.. 900 per
year. But suppose we find here and
there one who makes S. 600 why.
such an one would have to pay 5 per
cent on all over and above 81, OOJ-
which amount is exemption in other
words per cent on 81. OOO. This
would be simply $50 out of his net IN
come Of So 900. He would have g,
$50. The $50: would never be. missed
by u man who has made S. 600.
Suppose we find a man who has
made $37. 600 clear net profit in q
single year. Deduct the S. 900 which
is exempt it leaves $50. 900 subject
to TAXATION. On the first S.. 900 levy
a tax of per cent making $3.50; on
all abo.e $40. 900 and less than
$50 900 (Which is 500 OOO) levy a tax
OF 10 per cent making 81. 900; on all
over $50 900 (Which would be S.. OOO)
levy tax OF Is per cent max no
| $3.50. The total amount Of taxation
would be the sum of $3.50. and 81. 600,
and $75O-or 81. 900. This So. 600 is
the amount which $37. 900 net in
come would pay.
1t would be quite a large tax to be
sure but he would still have $34 OO(
left and certainly no man ought tc
complain who has clean net incors
of s3!. 900 in single year.
He could spare that So. 900 better
than man who works for 81. 90 pei
day can afford to pay even so cents
tax on what sugar his family uses il
a who.e year.
| And the payment Of this is. OO0 into
the public treasury would take thai
much off the shoulders of tie poore,
classes who pay their taxes in small
amounts. 1t would be like giving the
small OK the long end of the yoke.
Suppose again that we take a man
who has an income Of half million.
As we have seen in the above calcula.
ton. there would be 50. $50 on his in
come up to $50 OJO. Then on the
excess OF $50. 600 and up to $40. ooC
there would be tax o. S.. 900: or
the excess $50 600 up to 800 oO(
there would be So 900 (the rate be.
ing 20 per cent?; and on the excess Of
500. 600 up to $400, 600 there would
be 500. 00o-the rate being 25 pc,
cent. The total amount then would
be S115. $50. This is what a man
who made $500. 600 in a single year
would have to pay into the public
treasury.
| WE'LL Of course. such man unless
he was natural born patriot like
Peter Cooper would squeaL But il
he sauealed just take him by the ear
and say: See here Mr. Hog. you
have got 1884, $50 left and if you are
not satisfied TO live in country
whose business opportunities will en-.
able you to clean up that amount in
q single year. then you had just bet.
ter emlgrate to some other country
where you can do better.
Mot or.lV, uros,11 c,.oh