The times. [volume] (Richmond, Va.) 1890-1903, 1894-07-17
INCOME TAX REVENUE.
rsrrmxTED TO DE FROM 1000, 900
10 s39,OOO,0Oo.
washington Ford's Conclusions Reached
After . study Of tho Operation OF tho
Income Tax Law OF 1870.

| WASHINGTON, July ADMINISTRATIONS
| made by Worthington {. Ford. chief OF
| the Bureau Of Statistics. Treasury De-
partment lead him 10 conclude that the
possible" revenue under the income tax
provision Of the tariff bill will range from
S200,cOO a year at the lowest point to
$50. 90. 900 at the highest point.
Il also conclude" he says, that In the
first year Of it's operation. the lowest.
rather than the highest possibility Will be
attained"
These conclusions were reached by M.
Ford after a study of the operations
Of the income tax law OF ls6T and OF the
results reached by the operations OF the
laws In New York State ana foreign
countries.
In 1870 the product OF the income tax
was 81 ii5.0fj, the assessed vaIu3ton OF
all property that year was {l4.iio''ob 81
the income tax. therefore. represented
1870 Of per cent. Of the assessed Vdlua-
ton of property.
rate OF tax and limit OF exemption. 81 ,0OO.
to remain unchanged, on ne valuation Of
1880 there would be collected SIS. ~
But experience shows that only o1e-httn
of the taxpayers would pay on INCOMES
under $500 exemption. giving about
$40. go 90 on Il liberal estimate.
the income tox viii be six times the
amount collected IN New YORK state. ana
computing the receipts IN that state upon
the basis OF the operation OF those fca-
lures Of the State law, which are similar
to those in the proposed law, Mr. tor1
says the total receipts would be about
street railroad companies Of Boston TO
the state Of Massachusetts "a a basis
Of calculation. and assuming Il 20 oe
upon One-siXteen,h Of the whole street
49,
eminent would receive from that source
S3i3.32O The amount estimated 10 ~ de-
TtNcd from steam railroad companies by
Mir. Ford IS s. go. 736, only "a per cent ~
the amount derived from the same source
i'm 1865. the tax then, however, bcne ,
per cent. instead % .. as provided In the
pending bill. IN Great Britain the rela,,
tive proportion Of railway property anu
profits 20 the total properly ana PI"H's -
as / 10 -. Assuming mat u Is ue
same IN this country. the totai IIoauc'
OF the tax would be about $@QoVoO;
After an elaborate eNanindtiOn OF lhc
workings Of the income TAX laws In Great
Britain and Germany, win exhaustive
tables drawn thcrefrOm and upon cumu-
Iatiye evidence furnished 10y returns from
Saxony. Switzerland. Italy and France
"'rhat with the exception Of incomes Of
Jess than $4,000 year ANA with The othti
liberal exemptions granted uhdtI We
Senate bin the number or PAYERS -
be very small and the revenue out or
all proportion to ths cost and diGlcultlss
Of collection. Wherever an income i2N
has been i'm practice for any tline me
small incomes 80 yell Is the large are
taxti and it Is the small incomes wh.ch
Weld me largest revenue 10 the state.
As 10 the conclusion Of the whole mat
ter. .,11nt tho revenue from private in-
comes NH be small ana VIII hardly cover
the cost of collection. and that the reFe-
uuc from corporations may rea ~ as hlsh
as So 0,,oao but is more likely TO be
nearer $l2r10.r0.