The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-04-11
LOST REVENUE.
Effect of the Decision on the
Income Tax.
Senator PETER Computes What
Government Loses.
TWO THIRDS LESS.
Rents and Bonds Would Have
Brought Ten Millions.

WASHINGTON, April 10.-The debates
on the income tax, while the bill for
its imposition was under consider
alton IN congress, are almost bar
rem of figures showing the compar-
ative Importance of the incomes from
rents and interest on county, municipal
and state bonds in furnishing a revenue
to the government 1t does not appear
that this matter was touched upon in
the house discussions and it was only
casually referred to in the senate.
Senator Aldrich, of Rhode Island, pre-
pared statement, placing the revenue
likely to be derived through the in
come tax at 500, OO0 900, and crediting
rents and public bonds with about 80
per cent of this amount.
Senator PETER, who made the princi-
pal speech in the senate in advocacy of
an income tax, did not go into this
branch of the question at all, but he
said yesterday in an interview that he
was of the opinion that between So,
100000 and $40, 600, 900 of revenue would
have been derived from these two
sources if the supreme court had al
lowed them to stand, and he added
that he thought that this amount
would have been about two-shirds of
the total revenue produced by the in
come tax, as he (Peffer) had figured the
total at SIS, 900, 0OO
1.-The census reports show" he said,
'that So per cent. of the people of the
United States are renters, and it is to
be inferred that this proportion of the
land is occupied by renters. The land
of the entire country, with improve
20 &c I,
500, 544, 544 1923. Of this amount $2O,-
900, 600, 900 worth is rented. The rental
on that amount at the average rate of
per cent. would be 81 900, 900, O0O Just
what proportion of that would come
under the law is another matter, and
that could not be gotten at accurately;
but let us assume that one quarter of
it, or $3.50, 900, 900 worth, would be tax
able income, that would give SIS, 900, 600
of income tax and that, think, a very
low estimate. The bonds, municipal,
county and school district, which
would be subject to the tax amounting
to 5000, 213, O53. Take one quarter of
is5amount as coming within the oper-
atoms of the law, and one derives at
the rate of 2 per cent on this amount
81, 531, O65, or total on the two items
of about SO, 500, OOO."
Late yesterday afternoon Commits
sioner Miller decided to require all per-
sons who have returns to make aft
davits to the facts as to the amount of
income received from rents and bonds,
and those who have not yet sent in
their returns to make the necessary
correction thereon before doing so.
The commissioner and Mr.. Johnson,
the chief of the income tax division,
had a conference last night on the
steps to be taken to make the returns
conform to the supreme court decision,
and it is hoped that a definite conclu-
sion may be arrived at some time to-
day.
Although no statement has been
made to that effect, it seems probable
that the final decision will be that
Mondays opinion, in effect, exempts
incomes received from bonds and rents,
the latter to be strictly defined as the
amount the landlord derives from his
tenant. In computing income, it is be-
believed that it will be held that insur-
ance, ordinary repairs and taxes on ex-
empt property may properly be deduct
ed In that case it is probable that the
courts will be called upon to explain
just what yesterdays decision intend
ed to exempt from the tax.