The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1892-12-13

This income tax law passed Congress
July 1, 1862. It did not go into effect
till 1858
By its terms all incomes in excess of
5000 and under so, 900 were taxed at 8
per cent, yer $40, 900 at 5 per cent.
This was surely very moderate.
The tax was collected under the in
ternal revenue system.
From this source the government
collected 50, 741, 857 in 1868.
For the fiscal year ending June 30,
1864, it collected $40, 1914, 733.
On the third day Of March, 1868, the
act was amended so as to substitute D
per cent. for the 8 per cent. on the
smaller incomes, and 10 per cent LOT
the 5 per cent. upo1 the larger ones
commencing with an income OF S5,OOO.
Under these acts the government col
lected $50, O5O,O17.
In 1866 this tax yielded $72, 982, 1876.
In 1867 yielded $50, Ola, 429.
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 col
lected. In 1870 it was $34, 891, 857. On
July IA, 1870, the tax was extended
one year, and reduced to q per cent.
This was repealed by an act which
passed the Senate January 26, 1871,
and the House on March 3, 1871. The
yeas and nays were not taken in the
House.
Taxes already due before the repeal
OF the act continued to be cole ,ted in
1871 and 1872 and 1878. The last were
not in till 1877.
The tosal amount collected under
this very moderate income tax was
1886, 9O6, 738.
Does anyone doubt that it could now
be practical to collect enough revenue
from this source to III the govern
ment7
Fortunes have SO amazingly in
creased in the hands of the m~illionalres
profits so ~stupendous have accumu-
laBCQ III bllO Bd1lOS I'll Ol0L4OCbAO III
magnates, coal barons, railroad kings,
trust operators, steel and iron
combines, that a good heavy tax on in
comes above $40, OOO-the tax growing
heavier as the income was larger
would be phenomenal in it's yield.
The reasons why such a tax would
be better than any we now have are
sufficiently obvious.
1. It would put the burden on the
class most able to bear it.
2. 1t would put the support Of the
administration upon those who derive
the greatest benefit under the laws.
8. 1t would interest the most power
full class in the cause of economy. Rich
men get particular when they know
that they must foot the bills.
4. 1t would put the pension debt on
the men who got rich off the victories
of the soldiers.
5. 1t would discourage the accumU-
lation of enormous fortunes and would
afford a legal method of checking the
growth of concentrated wealth.
6. 1t would abolish the tariff, which,
as a system of collecting taxes, is the
most costly, one sided and monstrous
the world ever saw.
z. 1t would supplant internal reve.
nue., taxes upon whiskey and tobacco
which subjects of taxation should be
relegated to the States.
8. It would give to tax oppressed
people all over the land a relief from
the crushing burden of indirect, COW
ardly 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
In England it yields about $50, 900,
900 annually in Austria, $12, 900, 900;
in Italy, $45, OOO, 600; in Prussia, $780,
600, OOO.-Hon. z, E. Watson.