The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-12-06
HISTORY or rHx IscoxE TAX.

The Income tax vas FIRST enacted in 1851
and the rate was fired Ut per cent on all
incomes over 500. Congress changed the
law in 1892 so that all incomes over $500
and under 5000 were taxed 5 per cent !;
over 5000 and under $1,000, ~ per
cent, and over SO. 90, 10 per cent Ger
tain deductions were allowed. such as
house rent actually paid and other taxes
actually paid, whether national. state or
local. In 1854 special tax OF per cent
was levied for one year, this being addi-
tional 20 the regular income tax In the
same year the rate vas raised so that
all incomes above 5000 paid 10 per
cent In 1865 the first change was
made in the direction of lowering
the tax. This was done by raising the ex-
emption from 5000 to 81, 600 and making
the tax uniform at per cent. In 1870 the
exemption was raised to q. 900 and the rate
reduced to ~ per cent In addition to
this change IL was provided that all bnsi-
ness losses sustained during the year and
ali interest paid on loans snd all money
paid for labor to cultivate land and for
rent and repairs of premises act
ually occupied might be deducted in
estimating incomes. Under these sweep
ing changes the revenue derived from the
tar fell 10 $i9, 000. 600 in 1871 and 81. 0O0.-
coo in 1872. The maximum reached in any
single year H73. 000, 000) was in 1866 This
was tho year Of the double income tax"
the year in which the bulk of the special
tax enacted in 1884 was collected. When
the proceeds Of the tax had fallen below
$50 000. 900 Ii was deemed useless TO con-
tinue II longer. 1t expired in 1877.
It was believed then that nothing short
of great war would ever justify its re-en-
actment, for only under stress Of great
war will the people generally pay an in
quisitorial tar. As IL was in our war,
evasion, like that practiced by Samuel J.
Tiiden, was too often the rule. The
objections TO an income tax are of the
same kind as those which lie against
the personal property tax; it cannot be
collected with fairness and equality; for
only the very conscientious people pay
their rightfni share. Socialists and prop
erty haters have always advocated an In
come tar.
While the Democratic platform declares
for q revenue tariff and was silent in re-
gard to an income tax, the Populists
evaded the tariff issue and resolved that q
progressive tax on incomes would afford
the best source of income for the govern
mcnt. A report Of the committee on ways
and means in favor of an income tax would
be a triumph Of moribund party that has
been utterly repudiated By the people.
The income tax Is offensive to the
trade, the production and the enterprise
OF the country and odious inquisitorial
methods are required to collect it. David
A. Wells, the distinguished Democratic
political economist. opposes an income
tax and urges rather the greatly increased
income that could be obtained by further
taxes on the Injuries of beer and
tobacco. or the imposition of revenue
tax on sugar, tea and coffee. Butthe DEM
ocratic party does not dare to make sugar.
tea and coffee dear and has not the moral
courage TO raise the internal revenue tax
on beer, whisky and tobacco. so IL takes
refuge in the sociaiistic income tax as
bid for popuiist votes