New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-07-04
MINISTRY In BALANCE.
IT'S FATE IN INCOME TAX.
Opposition Widespread in France to
If. R0uUier's Measure.
Paris. June %.

r
+.,,ssl taxation on doors and windows by an in
20 tax has framed new issue on which the
so+s n the Combes Cabinet depends. and which
I'll be fought in the Chamber of Deputies and
:, the Senate to the bitter end.
Tho imposition OF an income tax has been
.,,s+sn+Iv discussed IN France since the revo-
-, n 1888 Between 1871 and 1903 no fewer
- forty-trree projects Of income tax have
-, submitted 10 the Chamber and that put
<-rsrs by N Doumer. Minister Of Finance in
7eoA had good fighting chance in parliament.
,+ was shelved by the Budget Commission,
,sob invariably has the last word in all sub
tocts pertaining to fiscal reform and enjoys such
.rtraordinary power as to be able to reduce the
S-.o,,ons of the Finance Minister to those OF
mere recording clerk.
The income tax bill introduced by NJ Rou-
,isr however has the approval Of the Budget
Committee and is warmly supported by the
radicals and its probable adoption will mark
: new departure in French fiscal reform. Keen
observers of French character, such as the late
n de Blowitz. and John Edward Bodley. be-
l,Aved an income tax to be so unsuited TO
The French temperament that its imposition
7rould be a rnischlevous error. AS Mr.. Bodley
has pointed out in his work the "Parlia-
-,ar+a-v system Of France" the general hos
ruitv Of the French TO the income tax is pri-
yrarlv due ito the recognition that the secre-
tive habits of thrift practised by the people are
such a source OF national wealth that TO dis
+urb or TO discourage them by inquisitorial
process necessary for Ievying the impost might
produce q public disaster inconceivable in an
trnprovident community"
Political economists like NJ. LeroyB eaulieu
take the same ground. and learned bodies such
as the French Academy are unanimously OPP
rosed 10 the measure that NJ Rouvier. in ac-
cordance with the platform Of the Combes Min
tstrv announced when it came into power
year ago. now proposes.
When N. Rouvier laid his income tax bill
before the Chamber the Right and the Nation
aIists regarded it as a joke. The Minister pro-
tested and storm of indignation ensued.
There will be some very tall lying" re-
marked the Marquis de Dion, for no one will
ever confess to the exact amount Of his income.
II IS simply a premium untruthfulness?
N Paul de Cassagnac rushed off to the office
Of his newspaper 'L'Autorite," and penned
flaming article headed THE Enemy Within Our
Gates" The champion Of the empire declared
that II Rouvier the Republican Finance Min
lister who enjoyed the confidence Of the Stock
Exchange and OF the most powerful bankers,
had proved himself "a mere Levantine juggler
and handed over the accumulated wealth Of
individual citizens to robbers and cutthroats."
Private capital" according to N. de Cassa-
neck and can be strangled at will"
The battle over the income tax will be des-
perate and ferocious. It's provisions apply to
foreigners as well as Frenchmen, and its main
lines are ingenious and interesting. The gen
eral idea Of the income tax is based upon the
declaration Of The Rights of Man." according to
which every citizen owes the State three work
ing days in the year. The plan is to exempt
small incomes and to apply a fixed rate of l5
per cent for larger incomes Another feature OF
the Rouyier bill is that the more children there
are in e family the lower will be the basis Of
taxation This clause is inserted in behalf OF
the powerful association of which the ex-
Premier, N. Waldeck- Rousseau, is president,
and which seeks to prevent the terrible de-
crease in the French births.
Different rates are applied in rural districts,
where living is comparatively cheap. and in
cities, where it is expensive. The Rouvier bill
is an extremely complicated one. with its series
Of sliding scales adapted to the various condi-
tons Of life, and household expenses Of the tax
payer are taken into consideration. There are
10 be two kinds Of income tax. One is to be a
personal tax graduated according to actual
ascertainable income and the other is tax
rents. The personal tax is to amount to 1.5
Per cent Of the average income of the taxpayer,
graduated according TO several categories. Up
10 $4,000 a year all incomes are to benefit by
reduction a sliding scale ranging from 10
Per cent 10 50 per cent, according TO the i'm
portance Of the income, while under fixed
sum. varying according TO locality from 500
TO 500, no tax at ali will be paid.
table annexed to the bill shows that with
an income not exceeding $500 a year the tax
works out ar 80 cents; incomes under $1,000
pay 80 40 in taxes; incomes less than So 900 pay
$l7; incomes less than $4,000 pay SAT; incomes
80
incomes Of $4,000 pay $50: incomes of $4,000
pay S2T0, and incomes OF 100000 pay $3.50.
For incomes over $4,000 the sliding scale reduc-
ton is no longer operative, and the tax is 132
per cent OF the income
Besides this the tax on rent is liked at per
cent Of the ratable value. other direct taxes,
such as those land and patents, and the
octroi or tax food, both solid and liquid,
continue as hitherto. The Minister declares
maj the income tax is not new tax, but merely
replaces the old imposts on doors and windows.
Ambassadors. Ministers and diplomatic and
consular agents win be exempt from the income
TAX n cases where the countries from which
lhey are accredited concede similar immunity
10 French diplomatic or consular representa-
u'es. The income tax win apply to foreign
residents. and those who on January l have
AFed IN France for less than a year win be
exempt only for that portion Of their income
derived from abroad.
Inc vital question how the income Of each
taxpayer is 10 be ascertained is TO be settled
n an original and complicated way First Of
al there is 10 be no declaration made by the
taxpayer. The revenue officer Of the ward or
district. aided by such information as he may
OBTAIN from the Mayor or other functionary,
places the taxpayer in the category that seems
most probable. The revenue officer then asks
Tor personal declarations. which he controls by