Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1896-05-08
HOLYOKE, MASS.

The Reason why.
have often wondered why it was that
the United States Supreme Court declared
the Income Tax unconstitutional at time
when the United States government needed
the money very much and did not care to
levy any additional taxes upon the people
at large.
The reasons given that the Capitalist
class objected to the payment of 2 per cent
upon their incomes is hardly the right an
swer. l have before me the report of the
Treasury Department for 1895 in which the
nature and operations of the Income Tax
is explained A paragraph in that report
especially attracted my attention and to my
mind it is the key to the solution of the
question why the Income Tax was declared
unconstitutional. The Commissioner of the
material gathered by tho Income Tax dep
uties is of such a private nature that he re-
quests Congress to pass law ordering all
material, documents and records Of the In
come Tax to be destroyed. Why destroyed?
The reason is plain. The nature of the in
formation obtained through the Income
Tax law is so far reaching that it will create
a revolution in the minds Of the American
people the moment the information becomes
public. The officials became alarmed at
what they learned and were afraid to pro-
coed any further ON that fearful road of
financial revelation, A few facts will prove
the above assertion. Up to May 20, 1895,
when the Supreme Court gave its decision,
the revenue department had gathered re-
ports from As, 672 persons whose total in
come amounted to 5000, 402, $50, and 80, 653
corporations whose total income was $3.50,
IS4 $50.
The taxable persons were classified as
follows:
Agents of business houses, etc. ...... 10, 29S
Bankers ......... ...:............ 1910
Manufacturers and business men. . 16, 213
Professions. Observation-Disclosures. 6, 66S
Farmers and stock raisers. ........... SS5
All others not classified. .............11,7 91
1t will be noted that among those As; 612
persons, whose income was 81, 900 and over,
there are only SS5 farmers and stock raisers.
Looking still closer find that these farm
ers and stock raisers reside maialy in our
industrial centers, such as Connecticut,
Massachusetts, New York and Pennsyl-
vania. They are not farmers then in the
meaning of the word, but are farmers for
sport or pastime only.
When you consider that the farming
population of the United States is As per
cent of the total population or about 3d.
900, 900 people and then bear in mind that
these hard working people can hardly show
one in million who has an income Of
81, 900 year, and OH the other hand you
see handful Of less than so, 900 people,
whose chief and sole occupation is to spend
money, having an income of over $500, OOO,-
900, then, indeed, it is dangerous to let out
the facts to the public. Again, what
400 banking corporations.
IL, or manufacturers and business men.
624 railroads.
e33 express companies.
83S insurance companies.
595 mine corporations.
sOs telegraph and telephone companies.
1901 gas. light and water companies.
5,321 not especially enumerated in total.
20, 653 corporations having an income of
$3.50, 7S4, $50.
The Commissioner of Internal Revenue is
Of the opinion that the total taxable incomes
would bring little over $50, 900, 900.
it is safe to assume that there
are in the United States about 100, 900 per-
sons, whose income is about 81. 500, 900, 900
while the rest of the 65, 900, 900
people produce all this wealth, but enjoy