Daily Texarkana Democrat., 1893-12-01
AN INCOME TAX.
How This, Now Important Measure
Works, in Other Lands.

works, in Other Lands.
For the time being the one subject
of paramount public intereet in this
country, is the "income tax" which
will, in all probability, be passed at
the coming session of the Federal
Congress TO the passage of this
measure the nation turns with one
accord for relief from more than one
threatened evil and more than one
Governmental perplexity. The ma
tional revenues have already, through
long years of mismanagement and
mal-administIation, reached a low ebb
dangerously low perhaps unless some
means of raising them can be devised.
10 this is added the fact that the
great good of tariff reform must be
followed by the lesser evil ofa further
reduction Of the Governments reveu-
ues. 1t is therefore clear that the
income tax on some kindred measure
ceases to be desirable experiment
and becomes, instead, q legislative
necessity. This measure, therefore,
becomes Of paramount public inter-
est and its workings and effects in
other lands, where it exists as an es-
tablisned law, cannot be without
general interest. We therefore give
the following statement of facts con-
tanned in the report, to this govern
ment, of J. c. Manoham, consul at
Chemitz, on the income tax Of Saxony
and other kindred countries: In.
comes of less than 800 marks ($7L40)
are not taxed. In Prussia all is ex-
empt under 900 marks (21420) Sax
ony wants to exempt all below 800
marks ($190,40), which would abolish
the lowest five grades at present.
The taxes on the smallest three
grades are very small, from nineteen
to forty-seven cents. The removal
relieves forty-three per cent Of all
persons taxed, and reduces the toUal
income tax only three per cent. All
those paying the grades of tax above
the lowest three grades are voters,
that is, all who pay on incomes of
$14280 or over 10 take the tax off
incomes up to $166.60 or off the low
eot five grades would relieve sc per
cent, off all those taxed and cost the
state only Z IL per cent of the total
income tax. The tax comes the
heaviest on middle classes. Incomes
of $785 pay a tax of $18 and incomes
Of $1499 a tax Of $45, "Teachers,
small tradesmen, aud mechanics, the
backbone Of the nation, Consul Mo-
naghan says pay tax Of $5 and $40,
The Conservatives in Germany pro-
poses to abolish the tax on the middle
class and leave the very high and very
low rates. 1t is proposed to coyer
losses by reductions on these rates
and by an increase in the higher rates
on incomes above $2284-80. Last
year the taxes on incomes above this
amount yielded SO per cent, of the
total income tax, the rate being 3per
cent on an income.
Any increase to or A l-2 on these
grades would cover the deficits on
low grades and this proposal is said
to be acceptable to the Conservatives.
The imposition Of the imperial in
come tax or royal ducal income taxes
as has been proposed could hardly be
collected, Mr.. Monaghan thinks ana
would drive capital from the country.
In Saxony small incomes pay from
one-hfth to one per cent. while the
rich pay no more than three per cent.
The Consul says: at worked very
successfully and has in the main
yielded safe and certain results with
little loss and less complaint. The
total revenue from incomes in Saxony
is $4,56S,7ll, the number taxed being
139S,6S Under the head Of income
everything comes yearly on the credit
side Of mans account taxed, Each
deduct the interest on debts, insur'
nnce and rcDairs,