The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1894-01-25
THE INCOME TAX.

It isa condition and not theory which
confronts the Democratic party in revis-
ing the iniquities of the Mckinley tariff,
but true to the traditions Of the party,
bill providing fer the raising Of revenue
ifas been reported from the ways and
means committee. in which 1t is pro
posed TO tighten the burden OF the labor
ing man by making the capitalist bear
his proportioaate share OF the expenses
necessary to run the government. In
1855, VIXEN the Democratic party surrend.
cred TO the Republicans the reins of gov
ernGent, they left them as a legacy
500, DOB COO in the treasury, and the coun-
try In 8 healthy and prosperous condi-
ton, with the gap between labor and
capital gradually lessening. -Four years
later when the Republicans, on account
Of tbs merited rebuke by voters, turned
tho affairs Of state over to the Democrats,
tksy succeeded to legacy of depleted
treasury, and the business OF the country
in an unsettled state. The first act of the
Republicans was to pass high tariff bill
TO increase the revenue Of our govern
mens, and then provide permanent
scale OF colossal expenditures far ex-
ceeding the revenue derived from the
tariff and placing tobacco and sugar
upox the free list, from which two pro
ducts the government had been receiv-
ing an annual revenue OF Sl50,0l0,0JO
These are the conditions which confront
the Democrats in their attempt to reform,
the tariff and place the business of the
country upon natural basis. The IN
come tax from which it is expected to de
rive revenue Of 100000 per year is
to be levied upon incomes exceeding
$4,000 annually. The following clause
from the bill fully explains the basis upon
which the tax is to be levied.
in estimating incomes there shall I've
included interest upon notes and other
securities, except such United States
bonds as are exempt from federal taxa,
ton. The tax is laid on profits realized
within the year from sales OF real estate
puIchased within the year or within two
years previous to the year for which the
income is estimated, also on sales OF live
stock and farm products generally where
grown on ones own estate, all other To-
comes derived from any source whatever
and the share of any person Of the pro-
It's Of the companies whether incorpor-
ated or partnership ho should be entitled
to the same II divided, whether divided
ver. otherwise except the incomes re ceived
from corporations whose officers are
required by law to withhold pereentnm
of the dividends and pay the same to the
officer authorized to receive It,"
This bill will probably, in its early
stages, be very unpopular, but We think
the theory a just one and it has always
had the endorsement Of our foremost
economical writers.
In 1870, Senator Sherman declared the
income tax TO be the most equitable tax
levied in the United States. The strong
est argument which has been urged
against the passage OF the bill ia that il
is class taxation, but we hardly think it
subject to this objection, as taxes upon
consumption are taxes upsn the poor,
and it is one OF the capital enornities oil
our present tariff laws that they place
the chief burden Of supporting the federal
government and paying pensions upon
the labor of the country. The balance
oil taxation ought to be weighed by some
taxes drawn from the property of the
country. II would not be tax upon
individual thrift as some contend, bat
tax levied upon the income OF invested
capital.
Under our present revenue laws great
many corporations and shareholders.
whose annual income reaches into the
thousands, are exempt from taxation.
This necessarily places the burden oil
supporting the general government TO a
great extent upon the poor, which is the
trse Republican theory.
The Democrats owe it TO the country TO
provide more equitable system OF tax.
alton than the legacy left them, by their
Republican predecessors and we believe
that when this system shall have been
thorou ghly tested it will meet the de.
n a