The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-01-30
SEATTLE. TUESDAY. JAY. 80
TmE INCOME TAX.

The Democratic income tax will bs the
leading topic Of discussion this week In
the house. 1t has been added as a rider to
the Wilson tariff bill. and this was 70 be
expected IS the genuine free trads leaders
OF the Democrseysof the South aud Vest
have never hesitated 20 sdvocats an in
come tar AZ an inevitable part Of free
trade tariff Senator Mills. OF Texas. al
ways frsnk man, a. long ago 40 October.
1880. publicly declared in Minnesota and
Ohio that he favored an income tax. The
limit of this proposed income tar is placed
ct - 900. and It's amount at 2 per cent.
though report is required OF all Incomes
OF ST. 500. This is higher exemption than
that Of ls3i-67. which was $500 in the act Of
1851. 500 in the act OF 1852 and $1,000 ia
the act OF 1867. Above S4,0O0 the tar Is
uniform, as it is IN England. Under tbs
''war" income tax. incomes Of over 81 600
were taxed 10 per cent. after 1866. bat prior
To that from 800 TO s.. 900 paid per cent.
5000 10 $4,000 III per cent. and above
this figure 10 pev cent
Under tlils proposed income tax corpo-
aries they paw, whether above or less than
s400o. and of course this feature Of the tax
will be most odions, since IL reveals all
Fixed incomes in shape Of corporate sal
aries, including those paid by the large
number of firms and factories working as
corporations. Each individual Is re-
CURED to report ali his receipts and profits
from every source. This covers the profit
made on the salo of land IL bought within
two years. the return from every invest
ment. the proceeds of every business, tho
dividends of every corporation whether
divided or undivided. and every return
from tho division of an estate or the pay
msnt CT Legacy. As corporate profits
are 10 pay q tax whether divided or not, all
the profits which are yearly reinyested In
extending q business and In purchasing
plant and machinery will pay their
2 per cent tax. The nominal profit and
investment disappears in the depreciation
OF machinery. bu. this depreciation, like
the losses on reat estate, cannot DO de-
Quoted from the amount on which tax
Of per cent. Is 10 be paid The great
mass OF the business of the Northern
states In all trades. transportation, bust
ness or manufacturing is carried on today
by corporations, aud any such corporation
under this measure will lie required to
report ali the salaries it pays and to deduc,
ftom them per cent on ali over 81, 900 and
turn tile tax over 20 the government On
all its borrowed capital il must pay per
cent, deducted from all interest coupons
and sn"nities. IL must pay the same tax
en- its dividends. Exclusive of these, il
mrst nase a reinrn of ne. earnings aud
ray on these per cent.
These net earnings must erciade ali Its
profits, and in addition all sums turned
into the business. whether declared as
dividends or not. Taxes. fire losses aud
worthless debts can DO deducted, but not
depreciation, wear aud tear OF machinery
or Losses on real estate. so much fer the
Income tax "a IL bears on corporations.
IL the individual has an income OF 81. COO
all that he gets from the produce and
yield al Any land must be reported, though
III general farming profits viii escape.
Outside Of corporate salaries, dividends
sna Interest. he must pay per cent on
and report the returns from corporate
holdings, though undivided. II they have
Increased the book value Of the corporate
properly of which Re Is owner. profits on
the sale oi real estate. hat nos losses. and
al legseies aud proceeds OF the division of
estates
The Philadelphia Pses summaries ell
these consequences of the proposed income
tax 10 acsA corporations aud individuals.
aaa further points oat tina. "w here a isrn
or individual j. tn business this luquisitioa
will ee doubled. An bis business profits
must he reported on one side and all hss
personal income on the ether So far as
appears ue caanes deduct tAs salaries he
paYs. IS corporation can. from sae
amount he pays GA his pEoats, and these
psofs;S Aee noi only the immediate aud
tangible returns at his business year hv
year. but that share Of hss PROFITS which
are aedsd a. Bis business capital aud
which, often, he eoald not Withdraw II ha
would and from which The aaly sppa rent
return viii be , per seat paid the govern.
r.aeat -