The Caucasian. (Clinton, N.C.) 188?-1913, 1892-11-10
4 CRiDgiTEB IsCOnE TAX.
Ii weaid Place tae Burdens OF Tax.
alton tPo1 Tasse Best Able 70
| Bear Them.

Now that the people arr awakening
to the appalling fact that few thoa-
sand corporation. aud individuals are
rapidly absorbing the created wealth
Of the country, the question ariseI is
there~a remedy? We believe there is
All adequate remedy.
We do not coincide With the views
of those who would arbitrarily limit
the accumulation 70 81 100000 or
| $6, 100000. Nor would We suggest
any course that would have the
effect Of crushing out that spirit Of
enterprise and go-ahessd which has
done 50 much to put the United
States in the front rank Of the world =
great nations.
One Of the remedies that we would
suggest is this: Limit the life time
LOT corporations, say TO twenty-five
years, with no power OF renewal.
This would put qaictus upou those
creatures that shave no sonls aud
never die" Corporate wealth would
then become dissi pated and he scat
tered among the various natural or
legal heirs, III abcut the s.me time it
docs the property which belongs to
Individuals. In other words, tinira-
tion would play havoc with indi,id-
ual accumulatiops.
another remedy, and the principal
one that we would depend upon, is
this: The adoption OF & graduated
income tax. Exempt Ill net annual
incomes less, say, than $4,000. Levy
I tax of per ceut. on incomes from
$4,000 to $4,000. When 3l0, 900 is
reached increase The lax ~ 10 per
cel.t. OH all above $4,000 and up to,
say, $4,000. On $4,000 up to $780,
900 increase the tax up Is per cent.
On all incomes from $4,000 to $780,
600 make it 20 per cent, and Oh all
incomes over and above 100000
make the ta1 % per cent.
The above rate of increase NAY tie
susceptible improvement Our fig
ures are principly 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
u merchant in Il small town of 4 few
thousand inhabitants, seldom makes
enough in his business, over and
above all bad debts, rents, local tax
es, wages to employees, living expenses,
etc, (all Of which would be deducted
from his gross incomel, to lay aside
Is net income $4,000 per year. But
suppose we find here and there one
who makes $4,000, why such a one
would have to pay per cent. OH all
over and above $2,O0o-which
amount is sexempt-or, in other words,
per cent. OH $1,000. This would
be simply $50 out of his net income
So, 600. lie would have $3.50. This
$50 would never be missed by d man
who has made $1,000.
Suppose We find a man who has
| made 93?, 200 clear net profit in d
single year. Deduct the $4,000 which
is exempt, and it leaves $4,000 sub
ject 20 taxation. On the first IS, GOO
levy tax of 5 per cent, making
$3.50; Oh all ADORE $4,000 and less
than $50, 600 (Which is 100000 levy
tax of 10 per cent, making $4,000;
on all over $50, (Which would be
| $4,000 levy tax of Is per cent,
making $3.50. The total amount of
taxation would be the sum of $3.50,
and $4,000, and 37G0-or, $4,000,
This % 900 is the amount which u
$37, 900 net income would pay.
1t would be quite Il large toA to be
sure, but he would still have $4,000
left, and certainly no man ought to
complain who has clean net income
of 934, 900 in 4 single year.
He could spare that $1,000 better
than u man who vcrks for s. per
day can afford To pay even 5U cents
tax on what sugar his family uses in
= whole Year. And the payment OF
this $4,000 into the public treasury
would take that much off the shoul-
jers of the poorer classes who pay
their taxes III small amounts 1t
would be ike giving the small OK the
long end of the yoke.
Suppose again, that we take man
who has ali income of half million.
As We have seen III the above calcu
latiou, there would be $2,250 on Ills
Income up to $4,000. Then on the
excess of $4,000 ana up to $50,
there would be tax of $1,000; on
the excess of 500, 900 up to 100000
there would be $4,000 (the rate
being 20 per cent?; and on the ex
cess of 500, 900 up to $500, 600 there
would be 0,000-the rate being
25 per cent. The total amount then
would be $l15,25O. This is what j
man who made 100000 in a single
year would have to pay into the pub
lie treasury.
Well, of course, such a man, un-
less he was natural born patriot
like Peter Cooper, would squeal. But
liz he squealed just take him by the
ear aud say: See here, Mr.. Hog.
you have got $3S4,750 left, and if
YOU are not satisfied to live in a
country whose business opportunities
will enable you to clean up that
amount in a single year, then you
had just better emigrate to some
other country where you can do bet
ter.
| Not only would such Il graduated
income tax take the great burden of
taxation from the backs of those
least ubie to bear it aud put it upon
the shoulders of those best able tU
bear it, but it would serve to equalize
the possession of wealth-or rather
prevent the vast accumulation of
wealth in the hands Of u few.
4 IL =