The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-07-28
AN INCOME TAX in FRANCE
TO PROVIDE a SUBSTITUTE FOR THE
TAX ON WINDOWS AND DOORS.
Other News Notes from the Consular
Agents of the United states I'm
All Parts Of the World.

Correspondence OF the Indianapolis Journal.
WASHINGTON, July 26-The people OF
France are. seriously considering the adep-
| ton of an income-tax law TO take the place
of the law which now imposes a tax upon
windows and doors and upon real property.
Consul General Skinner, of Marseilles. says
that measure carrying this idea has been
introduced in the French Chamber by the
minister of finance, NJ. Rouvier. Although
this is taken TO be a ministerial or govern
| ment measure. its prospects for becoming
| law are very much in doubt but 1t has ex-
cited great amount Of discussion. One or
| the objections made to the proposed law Is
| that the government officials declare the in
| come of the taxpayer without a statement
| from the latter. 1t is provided that the tax
payers may protest, and that after the rate
| of taxation has been agreed upon the gov
| eminent can review the case, readtust the
| rate and if-there is any shortage in what
| has been paid collect the arrears for as
| many as five years. This tax is looked upon
as favorable TO the poorer classes of people.
and is not particularly Objectionable TO the
rich. The greater part of the burden would
4 rest upon the so-called middle classes,
people of moderate means
In this measure, az all other French
| legislation, attempt is made to encourage
the raising of large families. and the heads
| of households are allowed to reduce their
rate of taxation in proportion TO the number
of children less than sixteen years of age
! they support The proposed law provides,
in brief. for a graduated income tax. the
rate being the same in all instances, Ia
per cent. of the taxable income.
The graduation is secured by exempting
certain proportion OF the income from the
| operation of the law. The lowest income
| TO be taxed is Sl44.75. OF this amount but
| 10 per cent Is taxable, of Sill, yielding a
revenue to the government of SO cents The
percentage of the income which Is not taxed
| rapidly decreases as the income grows
| larger For instance, an income or Sl,0bl-0
| is taxed for As per cent of the total. or
| $441.67 at the rate mentioned, which yields
| a revenue TO the government of S1l4 An
income OF $3,3U.50 is only allowed 10 per
/ cent exemption from taxation, and yields
1 the government a revnue of Si5.59 annually
There are thirty-fve graduations in this
l income tax. In round numbers the SMALLEST
| income tax is $50. Incomes amounting 10
| about $500 are allowed 10 per cent. deduc-
| ton without taxation, but incomes OF over
| $3.50 are allowed no deduction and taxed
I to their full amount. The thirty-fifth, or
| last, graduation is an income of about $780,
$50 year all of which is to be assessed
! and which would yield the government a
| revenue of nearly $500 year. In deciding
| what mans income should be estimated at
1
| sideration. including pensions.
As substitute for the tax on real prop
| erty IL is proposed TO tax the rental value
| of the property. This system already pre-
| walls in England with certain modifica-
| tons, and is probably an adoption OF the
| English idea. There is to be no tax on rent
| from persons who are free from the per-
sonal or income tax. In the case of a FAM
lily the head thereof is taxed for the income
| of his wife and other members of the fam
| lily. as we'll as his own. The father of chill
| ar
| on per cent. of his total income, IL he
has two or three children. or 10 per cent.
| IL he has four five, and Is per cent. *
| he has more than five.
In estimating the tax on house rent in
| towns OF more than five thousand inhabit-
| ants, the amount OF rent exempted from
! taxation is increased one-fifth for each child
| over and above the first one. The proposed
| measure is lengthy and provision is made
| for administration, adjudication and collec-
ton of the amounts due the government.
| 1t is said of England that If the income
| tax was honestly returned by every citizen
| the government would derive sufficient
money therefrom to pay all expenses with
| out any further taxation. The temptation
| TO the taxpayer. however, lies In under
stating his income, and IL Is presumed
that If the above Law should prevail in
| France a far greater proportion OF actual
| income would be exempted from taxation
| than Is provided In the proposed measure.
The old complaint so often made to the
demand for cash sales comes this week
from Asuncion, Paraguay. Consul Ruffin
reports that the importers of that country
assert it to be very difficult to buy Amer
lean goods, as the demand is made for cash
| payments, whereas European exporters
| grant six and eight months time from date
of invoices. collecting interest for the time.
| and drawing n draft against the shipment,
| which is usually sent with the bill OF lading
| through some bank 10 be collected. He
says there is also trouble in extending the
| American trade because of the natural dis
| position OF the producers and exporters OF
the raw materials in Paraguay to ship them
to firms who will permit them to draw a
of ladihg and insurance to the amount OF
| 50 per cent. the balance to be aD-
piled TO the payment for goods that may
be sent to Paraguay.
Consul Ruffin also describes the Industry
of making essence by extracting the same
from orange leaves. He says IL is a very
old and very extensive industry in Para
quay, and that many orange groves are
planted with an eye single TO their value
OF the leaves for essence making. This has
| been done for over $50 years by the Jesuit
priests, and the orange groves now form
Immense forests, which are full OF small
| establishments Tor extracting the essence.
The natives look upon this essence as a
valuable healing ointment. liz is manufac-
tured chiefy by French people, cesideats or
Paraguay, and after the essence is extracts
ed the orange peel Is shipped for the pur-
pose OF making marmalade, etc. A great
deal Of the essence finds its way TO the
| United States. but not directly. Ii is bought
In France and reshipped 10 this country.
The consul says that in gathering the leaves
7 of the trees large branches are cut and
often the trees themselves are fclled. IL
the trade were direct with the United States
this wood could be used for the manufac-
ture OF toothpicks. etc.
American agricultural machinery In al
ready found In nearly every country In
the world. but from the reports made by
the consuss stationed i'm the Orient IL Is
evident that this particular branch 90
American foreign trade Is only I'm its in
ception. There Is tremendous agricultural
development i'm progress I'm the Soudan, In
Russia, China and elsewhere, and this de-
velopment Il largely Of a modern chsrac-
ter. In countries like the SoCdan there h
alreauy considerable inquiry FOR irrigation
machinery, cotton gins. ola and Dossr miiiiSss
machines. and In Russia. around Odessa.
hay and straw presses are eagerly sought
The British consul at odessa reports 90 his
government that one straw prezser vac