New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-12-04
THE TAX on CORPORATIONS.

ON Thursday the Democratic quack medicine
most in favor was n tax on incomes. On fridhy
II was "A whiskcy tax. and some people were GER
tain that - cents would be- added. On SATURDAY
II WAS a tax on corporations which was expect
od to Weld SD OOO 900 or more. ON Sunday some
hint that the whole programme will have to De
changed this week and duties imposed on sugar
The facilities for speculative operations III
stocks are unrvallcd. and the man who h"si
tatcs is not losi-qutc the contrary, perhaps
As nobody can tell what the decrease in rev.
.nuc from changes Of the tariff will be-
whether S.yOOOOOOO. AZ Mr. Wilson estimates
or considerably more or less, until the bill has
zone through the Senate. member OF the
House Committee will have some excuse for
postponng his decision whether this or that new
tax should be- imposed.
One thing the country will understand. that
n new tax Is imposed only because the party in
power wished TO abolish or reduce duties which
have been paid by foreigners for the privilege
of selling in this market. The present duties
on wool and ores, woollcns, cotton ties ami
binding Irvine not felt by consumers; the
new tax, whatever II is. will be felt by some
body. The multitude of corporation hatcrs cyi-
IDENTITY inclines 10 the belief that Il tax on cor
porations will be felt by fewer people than a tax
ON sugar. and there they are undoubtedly right
The Democratic blundcr is III imagining that
| corporations feel when they are taxed. I'll"
persons who will feel such a tax are the in
dividuals who own shares. the individuals who
are employed by the corporation and do lis
work. and the individuals whom III" corpora
ton charges for services rendered or products
furnished.
The Democratic notion is that shareholders
are rich and bloatcd mOnopolisls 1t is m idea
worthy Of Il party which knows nothing
about the industries or the business OF
the age The fact is that shareholders
are persons OF every class and grade
from the capitalist or manager who
dcyotes both his time and his money to Il
business or the smaller investors who have
put in part Of their savings, to the widows and
children Of men who left them something for
their support. and the thousands of working
men who begin their accumulation Of property
by acquiring some shares in the company by
which they are employed. As these are the
most thrifty and intelligent of the workingmcn
as Il rule. and have most influence with others
the whole body Of workingmcn Is likely to know
what the cause IL. II Il TAX on corporations IL
followed by reduction Of wages.
The corporation exists solely for the purpose
of employing proltably the money OF the share
holders II il cannot make profits for them az
one scale Of wages, II will assurchly demand
another. If il cannot make profits by carry
ing freight at half Il cent per ton per mile, or
by selling It's products III GA cents per yard.
n vii, charge more Its taxes are part OF it's
expenses. and IN Increase in the expenses has
to be borne In the great majority Of cases by
the people who ride on the ears, or pay for the
freight transported, or borrow money from II
lending corporation, or obtain fire or life policies
from an insurance corporation, or get dwellings
built or loans from q building association, OF