Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-12-28
INTERNAL REVENUE.
How 1t is Raised in Many Countries
in Europe.
THE ENGLISH SYSTEM OF INCOME TAX.
The Rate Can be Raised or Low.
cred as Needed.
FRANCES NTAL TAX,

The democratic purpose to revise the
tariff. and the existence Of a practical de-
felt In the treasury, have given a good
deal of interest here lately to discussions
OF different systems Of internal taxation and
the workings Of such systems in other
countries. A volume was published by the
State Department in the summer of 1883,
made up Of special reports by United States
consuls on methods of taxation throughout
the world. and giving much information
about local taxation, as well as national This
volume. however. has become a trifie out of
date.as to its statistics, although not SO much
SO as to the outlines Of taxing systems. and
the members of the ways and means COM
mittee have been looking more to later pub
locations and to such systematic treatises
on public finance that of the eminent
French economist, Prof. Paul Leroy Beaulieu.
whose '"rraite de la Science des Finances"
published in the autumn of 1891, brings the
statistics down to quite recent dates. One
of the differences the members of the DEM
ocratic majority have had to consider be-
tween our situation and that of the leading
European countries is the somewhat
wider scope of federal functions in
those countries. The line of demarca-
ton exists between taxes levied for
national and those for local pur-
poses, but the line is not always SO distinct
as in this country, and the internal taxes
for both national and municipal purposes
are often assessed together just as in
many states Of the American Union the
state. county and local taxes are consoli-
dated in to a single tax bill.
The English System.
The more the members of the ways ana
means committee study the subject OF a gen.
eral tax upon net incomes. the less disposed
they are to adopt it. The English system.
which is often referred to in support OF the
income tax, assesses some sort of a tax up
on nearly everybody of moderate means,
but it is so distributed as not to show in
every case a mans exact earnings. The tax
is levied under five schedules-one affecting
the income from lands and houses the sec
ond the income from farms, the third div
idends and other corporate Investments, the
fourth the profits of business and profess
sionai men, and the fifth salaries and pen
sions. This classification of the tax and the
fact that the corporation part OF II is PAID
through the corporation, keeps from the
public the means OF calculating a mans full
income unless they are certain that IL is de-
rived from only one OF these several sources
In the case OF business profits an appeal g
allowed from the district commissioners to
national special commissioners, when the
merchant does not wish to disclose his
profits TO the local officers. Notwithstanding
these ameliorations, there is much evasion
and fraud regarding business incomes and
the conscience fund of the treasury has
sometimes received much as llOU
pounds sterling at a lump from some rich
business man who had repented of his de-
ceptions. The tax is very unpopular and in
lS12, there was an organized demonstration
by public meetings against II.
Can he Raised or Lowered.
1t was originally levied as a war measure.
and promises were constantly made that IL
should be abandoned as soon as the neces-
sites OF the government permitted MIR.
Gladstone was frank enough, however, to
declare. when he asked that il be voted
again for 1861. that while its abolition would
be happy mission for a chancellor OF the
eAcheQuer. Il do not dare to hope that II
Will ever be mine" Mr.. Gladstone's fears
have been realized and the tax is stiI in
force. The rate has been changed from
year to year with the varying necessities of
tne government, and this constitutes one Of
tne merits or the tax, in the opinion of its
advocates, that IL can De raised or lowered
according to the needs of the treasury with
out paralyzing business. as in the case of
tarin changes. The yield of the tax at diff
rerent percentages in various years is
shown ~