The Portland daily press., 1894-01-04
AN INCOME TAX.

if not quite, all the Democratic repre-
sentatives from the eastern section of
the country the Democrats of the COM
mittee on Ways and Means have decided
to levy tax on individual incomes
above $4,000 and on corporate incomes in
excess of the same amount. In this
case, as in most others where conflict
has occurred, the committee have yielded
to the demand of the South. The South
is in favor of an income tax because it
will bear very lightly on that section.
Incomes above $4,000 are few and far be-
tween there, and the effect of this
method of raising revenue will be to
saddle disproportionate burden upon
the North, especially upon the Middle
and New England States. From the far
West also there was considerable pressure
in favor of this tax, chiefly among the
Populists, who saw in it or thought they
did, an effective means for squeezing the
rich. The tax has been carried because
it was an unequal tax, bearing more
heavily on some sections and upon some
persons than upon others. 1t is unequal
taxation anG because it is unequal tax
alton it has been adopted. L. is class
legislation of the rankest kind Had it
been levied on all incomes il would have
been fair at least, levied on only part
of them it is unfair and experience will
undoubtedly show that it is inexpedient.
Unfair as it is in theory, it is going to
be vastly more unfair in practice. In the
great majority of cases the government
must rely upon the statement OF. the tax
payer for the amount of his income.
This will put the honest men of the
community at an immense disadvantage
in comparison with their neighbors of
easy conscience The former will have
to pay by reason of their honesty dis
proportionate share of the taxes. That
is to say they will be punished for their
honesty, while the other class will be re-
warded for their dishonesty. A law.that
produces this condition is sure to prove
demoralizing to the community and de-
bauch the public conscience. A constant
temptation will be before the honest man
to become dishonest, and the dishonest
| man will be stimulated to continue in his
dishonest ways This is not mere specu-
, lation. The income tax which was laid
| during the war worked exactly in this
| way Mr.. David A. Wells, who is one of
| the strongest and ablest of the free trad
ers, and whose economic views would
naturally incline him to favor an in
| come tax, is one of it's strongest oppon-
ents. He was collector of internal reve-
nue. when the income tax was in opera
ton during the war, and his experience
| then convinced him that whatever the
| income tax may be in theory, in practice
it is an Accumulation, productive of
wholesale perjury and general demor-
alization Of the public conscience.
| The intention of the committee to levy
the tax on the rich alone, or to use the
language of one of it's mem bers on those
who are able. to pay. is nullified to a
large extent by the provision to tax COR
porate incomes That tax will hit people
| of small means who hold few shares of
stock in some enterprise, as hard proper
tionately, as those of the large ones. The
| total incomes of these stockholders may
be far below $4,000, but by reason of own
ing. shares in corporation which earns
more than $4,000, they will have to pay
| an income tax, while another man who
| perhaps has a very much larger income,
will escape altogether, because he
| doesn't own. shares in any corporation.
Thus discrimination is made between
| the owners Of one kind of property and
~ ;ol
unjust and indefensible.
| Another exceedingly vexatlous result
| of the law will be the creation of an
army of emissaries of the government
| spying into the business of the citizen.
Many of them will be irresponsible, APP
pointed simply on political grounds, and
| if some of them are not guilty of hand
ling their political friends very tenderly
| in this income tax matter and their poll
tical enemies very harshly, human nature
will have changed great deal. The
| local tax gatherer is a person in
whom the community takes nc
| great delight, but the local
tax gatherer is generally backed by pub.
| lie sentiment. The taxes he collects
have been levied as A rule the communi.
ty from which he collects them. But the
Federal tax gatherer will in many com.
munities be enforcing an exceedingly OBJ.
noxious law, and he need must be little
less than angelic if the sentiment of the
community does not react upon him and
make him an exceedingly disagreeable
parsonage.