Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-08-18
WHAT IS INCOME.
Some Questions I'm Regard to II That
Are Difficult to Answer.

Some Questions I'm Regard to II That
Are Difficult to Answer.
Let them who think they know what in
come Is attempt to answer the following
questions, which We quote from a short ar
ticle. THE Phantom Quality in Incomes -
by George Gunton, In his Social Economist:
what Is income? If Lieut. Peary. by
expending s40.UOO in fitting out an arctic
expedition which consumes. three years,
makes himself sufficiently in demand as a
lecturer so that he can obtain $lO,UO by
lecturing six months, what Is his incom. for
the purposes of a tax on incomes? Would
not any tax laid on his income be simply
deduction from the fund available for
his next arctic expedition? Should the IN
come tax rest on $4,000 on SsDos,. or on
nothing? A cotton factory newspaper. or
steel rail mill devotes ten years 20 build
ing up trade, absorbing all the capital
1t can draw in and pay interest upon from
whatever source, uncertain all the time
whether 1t Is advancing to a fortune or 20
ruin; reinvests in plant and extension all
II can spare from salaries and wages: Is
burned out several times and depends upon
insurance for escape from bankruptcy. and
i1nally by lucky turn in the market i,akes
profit through an unexpected rise in its
stock of goods On hand or on its real es-
tate-is this lucky profit an income? If so.
what Is 1t II, before the tax has been paid.
IL Is swept away by an unfortunate specu-
lafiOn in stocks?
rs money which comes to one by inner
ltance Income? Is real property which de-
scents to one income? Are all profits in
come or only the annual excess of profits
over losses and expenses. Is a happy spec-
uiation In wheat income? Is a lucky bet
at tnc races or a fortunate drawing in a
lottery income? Is the portion of n rer-
chants sales which he invests In more gooGs.
larger buildings or an expensive home in
come! Can the losses of previous years be
balanced against the profits of this year
IN arriving at income? If a man raarries a
rich wife, is the fortune that comes 10 him
through her, income?
something That No One Can FIND out
These are few of the questions which
may aid us in understanding why the pres
ence OF an income tax is so frequently
spoken of fruitful of preyarication. eva
sion and perjury. The subject of income Is
an elusive and evasive one to reduce TO any
definite figures. unless zone has but one
means OF income and that a fixed salary.
The money which a. snan expends in sup
port Of his family fs' al truly one of the
conditions On " hich lie ocan transact BUSH
ness as the money he pays for the rent of
Lis store, or as his taxes themselves Bur II
all the conditions ON Which a man does
business are first - he deducted, then not
oniy rent and living expenses, but salaries
OF employees, advertising commissions and
all other expenses must first come out be-
fore net income is re4chei And If rent and
living expenses should first &C me out then
If one, to stop paying rent. buys a resi-
dence and pays the whole price, such price
should. as the capitalization of his rent,
also come out"
Mr.. Gunton de ,larIs' That it is impossible
TO draw hard ard East line which should
distinguish gross income from net income
recoupment on previous losses from present
income, beneficial accidents from income.
casual profits of Speculation from incomc,
conditioning expenses from income and
illusory erd ultimately profitless invest
ments from income. In short says Mr..
Gunton, income is largely an intellectual
conception rather than a physical fact,
and an effort to tax 1t upon any principle
or quality of justice becomes illusory II
no man can satisfy his own mind as to
what income Is, 1t must always be difficult
to satisfy that of a public officer, there
fore Mr.. Gunton is opposed to the income
tax clause Of the tariff law