Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1893-12-09
A CONCLUSION REACHED
Democrats Have Agreed on a Sys.
tenn of income Tax,
Confined to Corporations and a Tax O.
Succession ard leg soles--. Director
of the Mint Preston Makes
His Repoyt,

WASHINGTON, Dec. lit has been
definitely determined that tho income
tax system to be reported by the way
and means committee will be confined to
a tax on the net income OF all corpora.
tions and a tax OH succession and lega-
cies.
Messrs. Bryan, McMillin, Whiting and
others made strong fight for {, plan
broad enough TO include all incomes of
individuals in excess of $4,000 per an
mum, but they have been forced to nc.
Quiesce IN the will of the majority and
abandon the graduated income tax for
one applying only TO corporations and
successious. The Democratic members
have now reached definite conclusion
on this subject and it can, therefore, be
announced that the income tax system
will be narrowed down 10 these specific
limits, unless the plans Of the committee
are upset in the house and general
plan for a graduated tax on all incomes,
private rs well as cooperative. he adopted.
WI, Adopt an Unique Argument.
The committee in its report will adopt
an unique argument for restricting tho
system to corporations instead of apply
ing 1t to all individuals. They will state
that the greatest money earning powers
Of the country are the corporations.
while the risk to individual stockholders
is less than the risk in any private bust
ness. The corporations derive special
advantages from legislation, ono OF
which in the event of commercial disas-
aster the stockholders are only liable to
the extent of the tull value of the stock
subscribed and that to offset these
special advantages they should bear a
generous burden OF the expenses of the
government The tax on corporations,
therefore, will he graduated one. but
will apply TO all net earnings of what
ever aggregate.
Departure From Time Honored Theory.
This is an essential departure from
the time honored theory of an income
tax, rs most political economists have
favored the graduated system imposing
nothing on incomes of less than 81 ,000
per annum, 2 per cent on the excess be-
tween $1,000 aud $50, 900; 3 per cent on
the excess between so 900 and $50, 900,
and 10 per cent on the excess above $50, =
600. If sysem applying to individuals
should be adopted, there is no doubt it
would have been such graduated plan
as this, but since it is TO apply to corpo-
rations and SUGGESTIONS only, it will be
upon the net earnings of the corpora
tions and the gross amount Of the sue.
cession or legacy. SUGGESTIONS and lega-
cies in this connection, of course, apply
only to personality and moneys.
Increased Rates on Cigarettes.
The Democrats of the committee have
also decided 10 increase the rates on
cigarettes and to impose a tax on playing
cards. Both of these points are definite
ly decided, the object on the one hand
being to tax a nuisance" and on the
other TO tax an article which can bear a
heavy burden without any individual
feeling the weight of it.
The internal revenue tax on whisky is
sti Il an open question. The committee
maintains studious reticence on this
subject for fear OF the manipulations OF
spectators On the Stock exchange.