New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1894-01-17
THE PROPOSED INCOME TAX
Ex-0ongressman Lind Discusses the Pro-
posed Corporation Tax
The Deceptiveness Of the Measure Clearly
Pointed Out.
Not Tax on Incomes so much as on Pro-
duction.
A Letter to the Review which is Full Of
Good Points.

GOOd FONTS.
Ex-Congressman John Lind Of this city
has written the following letter for the
Review and we commend it to the care
full and thoughtful perusal of all our
readers.
Editor Review: In response to your
request for an expression of my views on
the ''income tax" which 1t is proposed to
levy to make up for the loss of revenue
resulting to the government from the
enactment of the pending tariff bill, I
shall only discuss the proposition sugges-
ted by the president in his message to
Congress. That proposition is not to tax
Individual incomes. but to tax the in
comes of corporations. AS it IS only
this latter scheme that has received Mr..
Cleveland's sanction it is safe to assume
that an s'income taxi properly speaking
will not be passed by the present Con-
gress unless Mr.. Cleveland should change
his mind, and that he is not likely to do
on this subject. To call this proposed
tax an ssincome tax" is a perversion of
language, as moments reflection will
show. An income tax IS a tax levied on
that portion OF the citizens income in
excess of given sum - say in excess of
$1,000. If PERSONS income does not
exceed the minimum, he is not subject
to the tax. If it does he is to the extent
of the excess. Theoretically. at least,
this is an eminently fair tax as it is APP
portioned, approximately of course, to
the citizens ability to pay. But the pro-
posed corporation tax does not operate
that way. 1t will fall alike on all cor
porations. In those cases where the tax
will have to be borne by the shareholders
of the corporations (which will probably
not be many, as will show later on the
J tax will fall upon the holder of ten
. shares, the same as it will upon the hol-
| der of thousand. It is this feature that
! differentiates it from the system of in
4 come taxation as it exists in England and
las it existed here during and after the
war. 80
For these reasons it is more proper to
! callMr. Cleveland's proposed tax, aspect
al tax and I shall so term it. .}r.-.s
To assume to predict with certainty at
this time either as to the success of this
proposed tax as revenue measure, or as
Z to it's effect on industry would be futile.
5as nothing is more uncertain than the re-
suit of a new tax. All that one can hope
|, to do is to point out its tendency and
probable effects. We do not even know
in what form it will be presented: Ithas
been stated in the papers that it would
he limited to tax on the net income of
corporations. If it should pass in that
form it strikes the writer that it would
>Hnot be very productive Of revenue at
y, least when the country was enjoying
/ sdemocratic times" But the aaetincome
of corporation is always an uncertain
quantity, as we learned to our sorrow in
connection with the Pacific railroads.
The supreme court found it difficult to
define it, and it is not putting it too
strong to say that in the case of a rail
road or industrial corporation the net in
= come always has been and always will
be largely matter of bookkeeping.
Hence if the proposed tax is to have any
value to the government as a revenue
measure it will have to be levied on gross
incomes.
That this tax should at first thought
-}appeal to the mind of the average citi-
1zen as Just and effective scheme tomake
capital contribute its quota to the sup
Sport of government seems quite likely.
Neither is it improbable that it will be
haaed and heralded by Mr.. Cleveland
bnany admirers as another of his dispen-
eahonS Tor the relief OF the masses Ior
WRm he processes such great concern II
5even venture to predict that it will en-
3oy period Of brief popularity until the
gpe6ple have had time to study it and
tlooM back of the label.
- all know that there is at present
i strong feeling Of prejudice among the
bedple against corporations. In part, at
Neal not without cause. Many Of the
;,orf rations on which we depend for the
,hec5 aries and conyeniences Of daily
i4fea ave by a short-slgh policy Of ar
sbtrlry conduct and unrea Enable exac-
s1ds brought about 9 public sentiment
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