The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-05
AGAINST AN INCOME TAX.
SaVaRnah'S Business Men Are SOlidly
Opposed to II.


Hard to Enforce.
The proposition of the ways and means
committee of congress to make up the
probable decrease in the revenue of the
government anticipated from the change
of schedules Of the Wilson bill by a per
cent. tax upon all incomes above $4,000
per annum is not received with especial
favor in Savannah.
Several well-known fnanciers who
were seen yesterday were out spoken in
their disapproval of the bill They de-
clared that the measure would prove fatal
to the Democratic party because of the
widespread dissatisfaction it would en-
gender and the unpopularity of the
methods which it would be necessary to
adopt TO enforce the collection of the tax.
! Such a law, they declared, would be in
| quisitorial in its operations, making it
necessary for the officers to inquire
into the private business affairs
of every person whom they might sup
| pose to come under its provisions. One
well-known financier declared that it
would require an army of revenue Off
GERS to collect the tax.
WOULD STRIKE SAVANNAH.
strike Savannah heavily. A leading mer-
chant was asked if he Thought there were
many persons IN Savannah who would be
affected by the tax
There is a large number" he replied.
Look at the number of officials of rail-
roads, banks and other corporations,
whose salaries exceed a, 900. There are
the leading lawyers and professional men,
and almost every business man of any
| in hot
Savannah is an expensive city to live in,
as is very well known. There are great
many men who are neither rich nor es-
| peclally prosperous, whose annual ex-
| penses exceed 81, 600 In fact, it is hardly
possible for man of family to live in any
sort of style for less than that amount.
| There are hundreds Of business and pro-
fessional men in Savannah whose income
| exceeds the limit named and who yet
spend almost their entire income for their
living expenses. The effect of the income
tax, upon this large class, would be to
simply compel these people to retrench
| upon their living expenses for the amount
OF tax they were required to pay"
WOULD ENCOURAGE PERJURY.
sThe effect of the income tax would be
to make us a nation of periurers,n de-
| clared one well-known business man
''How is the government to get at the
amount of mans income except upon his
own statement, and how many men will
truthfully state their full incomel It is
| well known that Notwithstanding our
state, county and city tax laws, with
their boards of assessors and appraisers,
that not more than one-third of the per-
sonal property of any community is given
| In for taxation. Who is able to
tell how much cash, stocks and
bonds, 5ewelry and other valuables man
has on hand? How much more difficult
it will be for the government to ascertain
the income of its private citizens. Even
the ordinarily honest man will justify his
evasion of the tax with the reflection that
| his neighbours and associates are doing
the same thing. How is the revenue Of
ficer to know that the man who states his
income at $1,000 is not receiving an in
come of $4,000, or tina the man who re-
turns $4,000 is not m aking S25, 900 year
BLOW AT CREDIT.
The law would work hardship upon
business men in another way The re-
turns of business vary in all lines. A
business man who would report an in
come of $4,000 for taxation one year
might make only s., 600 the next year, or,
perhaps, be several thousand dollars
behind, but he would be
afraid to report this reduction
in income for fear it would in1ure his
credit and business standing. He would
be compelled to pay a tax on an income
he was not receiving rather than reveal
his losses.
"The tax is even more
ubiquitous upon corporations" said
a prominent banker, stthan
upon private citizens. A private citizen
who has large income may possibly not
be bearing his full proportion of the tax
burden. The banks of the state are al
ready bearing more than their share. We
not only pay full taxes upon our property
and banking capital to city, state and
county, and license to do business as well.
but our bank stock is also taxed. Not
only is the investment of a CORPORATION
taxed, but the stocks and bonds repre-
senting it as well. BY the decision OF the
supreme court the city is compelled to
apply the same rate of tax to banking
capital and stocks and bonds as to other
property
TOO MANY TAXES.
A business man pays taxes upon his
stock of goods and he adds his taxes to
the price of his goods. Bank or other
stock, however, which occupies an en-
tirely different position, must pay the full
tax Of about 215 per cent. per annum.
after having already paid the tax upon
its capital When, in addition to this a 3
per cent. tax is exacted upon the income
Of the bank or other corporation, its in
vestment will have been taxed third
time A corporation cannot evade the
tax, as private individual might. as its
records will show the exact amount of its
income, The intention of including corpo-
| rati0ns in the income tax law is, no doubt.
| to compel those having large incomes
from stocks and bonds TO shoulder their
proportion of the burden of government.
Theintention is good, but if you will ex-
anime the books of the banks of this CITY.
and | have no doubt the same is true IN
other cities, you will find that while there
are few large stockholders the majority
of the stock is owned by
small holders and by charitable institu-
tions. Such tax would bear very heavily
upon these classes Of stockholders, whom
it is evidently not intended to reach"
| AN INHERITANCE TAX.
"a tax upon inheritances," said another
| gentleman, would prove a much
more satisfactory means of raising
revenue. In the first place, it
! would be easier of collection
| The amount of inheritance is usually a
matter of record in the courts It would re-
quire no prying into private affairs to as
! certain its value, and on the other