The record-union., 1894-02-09

2, 1886, to Miss Frances Folsom.
EDS. RECORD UNION: Can you tell me
what is now the debt of the United States.
r.
The interest bearing debt January 30,
1894, was excluding Onited States bonds
and Pacific Railroad bonds, S5S5, $50;
debt on which interest has ceased since
maturity, 81 ,oS4, $50 80; debt bearing no
interest, S378, 2I7 ,S65 81; aggregate Of GER
tlticates and treasury notes, offset
by cash in treasury, SOL, ,lSl; the
aggregate debt, therefore, including GER
tihcates and treasury notes, is SI,517,-
POI, 706 SO; the sum December 3, 1898, was
81, ,567, ,923,34 13; the increase for the
month was therefore S9,307, go 50; the
cash balance i'll the treasury February |,
1894, was SS4, ,0S2, ,099 50, being a decrease
of S6, 293, 400 90 in the month of January,
1894.
NJ. a. Burke propounds an extended
series OF questions, which, summed up.
amounts to this: What is an income
tax ?''
The bill now before Congress is not be-
fore us. An income tax is. in general
terms, direct tax upon the net income
of the individual or the lands Of landed
corporation and estates prior to division
in excess of stated amount specified In
tne statute tnat may be passed.
In response to some of the details asked
for we may say, the tax relates to net re-
ceipts from any aud all sources, in any
and all callings and businesses of the in
dividuals not exempted by the law that
may be enacted. Professor Amasa Walker,
in his Science of Wealth." pronounces
it, ''Of all modes of taxation the most just
and equitable. Every man can afford to
pay according to his income, and ought to
do so. There is no other perfect standard
of taxation; none other which does not
inflict more or less hardship and injustice.
The tax comes upon the annual private
revenue OF each year, out OF which the
Government should receive its share Tor
the annual revenue of the State. Ii the
private revenue is increased, it should be
the contribution TO the public revenue; if
the former is diminished, the latter
should be also. This is fair and just"
Adam Smith said in his consideration
of the subject: Every man should be
taxed according to the revenue he derives
under the State. j The income tax
payer knows when and how much to pay;
and it can be collected as conveniently
and as economically as any other taxi
1t seems to US that perfect equity will
permit of no exemption whatever in a
true income tax policy. But this is gen.
orally disputed by statutes, which nearly
shall be taxed.
Professor Perry in his fine work on
political economy defends the income
tax as the best and most just of all. But
above all other reasons for it he gives
this, that it has no tendency to disturb
prices. ''Were there no taxation except
on incomes, and were the incomes rightly
rendered, the prices of everything would
be just as if there were no taxes"
We NAV add that no fair DariOlAnt
with an income tax has ever been made
in this country. That of 1876 and fol-
lowing was not a fair tess, for it hinged
upon a disturbed condition due to the
Civil War.
AS to the means of ascertaining what is
the income of an individual, what the
net, 4. e.: what should be taken out TO as
certain the net, see the several authors
who have treated fully on the subject,
notably Professor Newcomes "Princi-
pies of Political Economy" 1856.
Our correspondent asks, rs not this
talk about making the rich pay their just
proportion of the expenses of the Gov
ernment (by income tax mere twaddle?"
BY no means, it is most serious It's
friends claim for it that it has the support
OF nearly every leading political econo-
mist in the WORLD who has written upon
the subject, and England for thirty
years practlced 1t with success. As to
why property tax cannot be so easily
collected as an income tax, it might be
asked why cannot the latter be as easily
collected as the former.
However, the friends ofincome taxes say
that property valuation is subject to the
acts of dishonesty. to the pressure of bri-
berry, to political greed. etc. Property fees
also; it hides; it gets over the line on tax
day and returns when the day has passed.
That 1t is largely capable of comp plete con-
cealment; the individual and the in
QUESTION into his income are more easily
reached than property and inquisition
into its value. Besides, behind the in
QUESTION of the law is the puuative
penalty in the case OF the income tax.
But we refer our correspondent to the
many able works that treat of the SUBJ
ject; he will find some that take strong
negative positions also. For instance.
see Frederick G. Howe's article in the
Annals of the American Academy of
Political and Social Science, January,
1894.