St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-01
A TAX ON NET INCOMES
WILL Be REPORTED By The Why's AND
MINIS c0RNiTfEE.
APPLY ONLY 70 CORPORATIONS
Strong Fight Made to Include In.

Strong Fight Made TO Include In
comes of $4,000 Per Annum-
A Tax on Succession and Leg
ecies-Report OF Secretary OF
the Navy-No Revelation in the
Tax OH Liquors.
WAsHIN GTON, Nov. 30.-It has been
definitely determined that the income
tax system to be reported by the ways
ana means committee will be confined to
tax on the net incomes of all CORPORA
lions and tax OH SUGGESTIONS and lega-
cles. Messrs. Bryan. McMiilin, Whiting
and others made a strong fl ght for
plan broad enough to include all in
comes of individuals in excess OF 5000
per annum, but they have been forced
to acquiesce in the will of the majority
and abandon the graduated income tax
i'll favor of one applying only to corpora
tIons and SUGGESTIONS. The Demo
cratic members have now reached
definite conclusion on this SUBJ
JeeT. and it can therefore be
confidently announced that the income
tax system will be narrowed down to
the specific limits unless the rec0mmen-
uatlonS OF the committee are upset in
the house, and general plan for
graduated tax OH all incomes, private as
well as cooperative, be adopted. The
committee in its report to the house
VIII adopt unique argument for re-
strlctlng the system to corporations in
stead of applying it to all individuals.
They will state that the greatest money
earning powers of the country are the
corporations, while the risk to individ-
ual stockholders is less than the risk
III any private business. The cor
porattons derive special advantages
from legislation, one of which
is that IN the event of
commercial disaster the stockholders
are only liable to the extent of the full
value or the stock subscribed, and that
to offset these special advantages they
Should bear generous burden of the
expenses OF the government. The tax
Oh corporations. therefore, will not be
graduated one, but will apply TO all net
earnings of whatever aggregate. This
Is an essential departure from the time
honored theory of an income tax, as
most political economists have favored
Lie graduated system imposing nothing
on Incomes OF less than $1,000 per an
mum. per cent on the excess between
$1,000 and $4,000; 5 per cent on the ex-
cess between $4,000 and $50, 600, and 10
per cent on the excess above $4,000.
Ii system applying to individuals had
been adopted there is no doubt it would
have been such a graduated plan as
this, but since it is to apply to corpora
lions and SUGGESTIONS only, it will be
upon the net earnings Of the corpora
tons and the gross amount of the sue
cession OF legacy. SUGGESTIONS and tega-
cies Ill this connection, OF course, apply
only to personally and moneys. The
Democrats of the committee have also
decided to increase the rates on Gig
arettes, and to impose tax on playing
cards. Both of these points are def
nltely decided, the object on the one
hand being to tax nuisance" and on
the other to tax an article which can
bear heavy burden without any indi-
yldual feeling the weight of it. The
internal revenue tax on whisky is still
an open question. The committee is
maintaining studious reticence on this
subject for fear of the manipulationS of
spectators oil the stock exchange.