The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-12-16
AN INCOME TAX.
European Nations Recognize the Justice
of Such a Law.

AN INCOME TAX.
European Nations Recognize the Justice
of Such q Law.
This income tax law passed con-
gress July l. 1862. It did not 90
into effect till 1868.
BY it's terms all incomes in excess
OF 5000 and under So 900 were taxed
at 8 per cent over $40. 600 at per
cent
This was surely very moderate.
The tax was collected under the in
ternal revenue system. From this
source the government collected
s.. IA. 957 in 1863
From the fiscal year. ending June
go 1864 it collected $40. 294, 1913.
On the third day of March. 1865.
the act was amended so as to substi-
tute 5 per cent for the per cent on
the smaller incomes and 10 per cent
for the 5 per cent upon the larger ones
commencing with an income of $4,000.
Under these acts the government
collected $50. O50. OH. In 1866 this
tax yielded $72. 982, 395. In 1867 it
yielded &c., Ola. 429. YssxasA
In 1867 the law was amended. The
tax was diminished in effect one half.
The amendment also provided that
the act was to expire with the year
1870.
In 1868. $41. 455. 500 was the sum
collected. In 1870 it was $34, S91, 857.
On July IA. 1870, the tax was ex-
tended one year. and reduced to y
per cent.
This was repealed by an act which
passed the senate January 26. 1871,
and the house on March 8. 1871. The
yeas and nays were not taken in the
house.
Taxes already due before the re.
peal OF the act continued to be col
lected In 1871 and 1872 and 1873.
The last was not in till 1877.
= The total amount collected under
this very moderate income tax was
| $S46. goo. 738.
Does anyone doubt that it would
now be practical to collect enough
revenue from this source to run the
governments?
Fortunes have so amazingly in
creased in the hands of the million.
aires; profits 50 stupendous have &C.
| cumulated in the hands of Standard
oil magnatea coal barons railroad
kings sugar trust operators. steel and
iron combinera that good. heavy
tax on incomes above So OOO-the
tax growing heavier as the income
was larger-would be phenomenal in
its yield.
The reasons why such tax would
be better than any we now have are
sufficiently obvious
|. 1t would put the burden on the
class most able to bear it. .s-r
2. 1t would put the support of the
administration upon those who derive
the greatest benefits under the laws.
8. It would interest the most pow
erful class in the cause of economy.
Rich men get particular when they
know that they must foot the bills.
4. It would put the pension debt on
the men who got rich off the victories
of the soldiers.
5. It would discourage the accumu-
fation of enormous fortunes and would
afford legal method of checking the
growth of concentrated wealth.
6. It would abolish the tariff.
which as system OF collecting taxes
is the most costly. one-sided and
monstrous the world ever saw.
Z. 1t would supplant internal rev.
enue taxes upon whisky and tobacco
which subjects OF taxation should
be relegated to the states.
8. It would give to tax-oppressed
people all over the land relief from
the crushing burden of indirect.
cowardly and illegal taxes which are
wrung from them IN the name OF the
law for the benefit of privileged
classes
The nations of Europe recognize
the justice of the income tax. says
Hon. I. E. Watson in the National
Economist
In England it yields about $50, :
600. 600 annually; in Austria. $12. :
600 900; in Italy $45. 900. 900; in
Prussia, $50 600. 900.