The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1892-11-29
Is THERE A REMEDY1
How = Graduated Income Tax Would
even Things Up.

~ NOW NL1b bAC
+bo aoDalIIng fact that a few thou
onrnoratlOns and Individuals are
@on'dIv absorbing the created wealth
- y COUNTRY the question arises: Is
there a remedyF -
o,d RATIONAL remedy, say 8 the ChlcaSo
"1 W. do not coincide with the views
,h,ca who would arbitrarily limit
tbo accumulation to 81, 600, GOO or
So, O0U, 600. -s
Nor would we suggest any course
hat would have the effect OF crush
ing ou5 that spirit I enterprise III
90 ahead which has done SO much 10
put the u tied S ates IN the Iroh' TANK
of the worlds great nations
Ore of the remedies that we Would
s,,0oest is TINS: Limit the lifetime OF
coTtnrations say to % years. with no
mover of renewal. This would put a
6~11ietls upon those creatures that
! have no souls and never die" Cor
norate wealth would then become dis
Ginated and would be scattered among
the various natural or legal heirs, IN
about the same time as does the prop
erty which belongs 10 individuals. In
other words. limitation would play
havoc with corporate wealth the same
that death plays havoc with individual
accumulatI IDS
Ano, her remedy, and the principal
n that we would depend upon Is
this: The adoption of the graduated
income tax.
Exempt all net annual incomes less,
say. than 3 600.
Levy a Tx of 5 per cent on incomes
from 81 600 up to $4,000 When
SO 600 Is reached increase the tax to
10 per cent on all above $40, 600 and up
to. say, $50. 900. On $50. 600 up to
$50 600 increase the tax to Is per cent.
On ali incomes from $50 600 to 500 600
make IL 20 per cent. And on all IN
comes yer and above 500, 600 make
the tax IS per cent.
The ABOVE rate of increase may be
susc, ptble of Improvement. Our fig
ure| are principally for Illustration
though cur 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 a
merchant In a small town of a few
thousand inhabitants, seldom makes
enough in his busIne IS. over and above
all bad debts. renUs, local taxes, wages
to employ eS living expenses, etc, (all
of which would be deducted from his
gross IncOme) 10 lay aside as net income
81 600 per year. But suppose We find
here and there one who makes 50 600
why. such an one would have to pay 5
per per cent on all over and above
50 000-whIch amount 8 tx mpt-Or,
in other words. 5 per cent. on $1,000
This would be simply $50 out of his net
income of So 600 He would have
50, $50. The $50 would never be missed
by a man who has made So, 900.
Supp0-e We find a man who has
MADE $37. 600 GEAR net profit in a
single wear. Deduct the 50 600 which
Is ex' mpU 1t leaves $50, 600 subject to
taXaIl n. Tn the first SIS 600 levy a
tex of 5 per cent, making $3.50; on all
above so 600 and less than $4,000
(Which L. $2O. O00) levy a tax of 10 DER
cent making 81 600; on all over $50.
900 (which would be S.. O0O) levy a tax
of Is per cent. making $3.50 The total
am uni of taxation would be the sum
of $3.50 and 50 600. and $3.50. The
tOtaI amoria of taxation would be the
sum OF $3.50, and 81 600, and $75O-or
$500 IuIr s. 600 Is the amount which
a S37 600 net income would pay.
1t would he quite a large tax to be
sure, but he would still have $34, 600
left, ard certainly no man ought TO
COMPLAIN who has a clean net income
of $34 90 in a single year.
He could spare that So 600 better
than a man who works for 81 90 per
day can afford to pay even 50 cents
tax on what sugar his family uses In a
whole year
And the payment of this s.. OOO into
the pubic treasury would take that
much IF the shoulders of the poorer
classes Who pay their taxes in small
amounts. L. 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 a million.
As we have seen IN the above cIrcula
ton, there would be 50 $50 on his in
come up To- $3U 600 Then on the excess
of $50 coo auG up to $50, O0O there would
be a TAX Of 80. 900; on theexcess $50, 900
up to 5 90 600 there would be SO 600
(the tate being 20 per cent }: and on
the excess Of 800. 900 up / $500. 900
there would tie $lO0 O0O-the rate be-.
ing 25 per rent. The total mOun
then would be $l15. $50. This is what
a man who mace $500, 600 in a single
year would have to pay into the public
treasury.
Well. Of course, such a man unless
be was a natural born patriot like
Peter Cooper, would squeal. But if he
squeaied just take him by the ear and
say: Set- here, Mr. Hog, you have got
1884 75o left, and if YOU are not salts
fec 10 live in a coun ry whose business
opportunities will enable you to clean
up shat in a single year, then
you had just better emigrate to some
other country where you can do better.
Not only would such a graduated in
come tax take the great burden of taxa
ton from the backs Of those least bic