New-York tribune., 1906-07-29
pire and the maintenance of the balance Of
power in Europe.
TILE FRENCH INCOME TAX.

The details of the proposed French income tax
law so far as they have been set forth, as
suredly appeal 20 the imagination with their
ingenuity, though they may be somewhat ap-
paIIing with their Intricacy. IL is TO be doubted
whether a more elaborately scientific" scheme
was ever devised. From the point of view OF It's
promoters and of believers in discriminating
rather than of uniform taxation, il is eminentiy
logical. In this country such scheme would be
oonstltutionaly impossible. But even TO Amer
leans its operation in Franee-if IL is adopted
as it doubtless will be-will be a most interest
ing and Instructive experiment
NJ Poincares scheme Is nlnefOld one. 1t In
wolves three distinct and separate categories Of
taxation. each of which is subdivided into three
classes. The first divisions are made according
to the source Of the incomes, the second accord
ing to the status Of the taxpayer. Incomes are
divided into three classes-thOse derived from
capital inherited, accumulated or invested; those
derived partly from capital and partly from
labor and those derived from labor. The prin-
ciple of tax grading is that incomes derived from
labor should be less heavily taxed than those
derived from capital. Therefore it is proposed
that the full or maximum rate of taxation shall
be imposed upon the class first named. that the
second class shall pay only three-Quarters as
much and the third class only one-half as much.
That is not entirely accurate in its discrimina-
tion, for the reason that in few cases will in
comes Of the second class be exactly divided one
half from capital and One-half from labor, as
they should be If the rate for mixed incomes Is to
be Just half way between the other two. Strictly
speaking, the exact proportion from each source
should be ascertained and each of the two pOr-
tions should be taxed at it's own class rate As it
is, an income so per cent from capital and 10 per
cent from labor will be taxed at the same rate as
one 10 per cent from capital and 80 per cent
from labor. It is to be feared, too, that some
taxpayers whose income is practically all from
capital will be tempted 20 secure some insignln-
cant additional income from labor in order to
be taxed in the second instead of the first class
If man whose income was 100000 year
from inherited capital were to do some little
work so as to earn as wages or as the product of
his labor $40 a year he would apparently thus
be entitled to have his taxes assessed at the
lower rate! That seems to be one of the chief
defects of the bill.
The second set Of classes may be more GER
tainly and more accurately determined. In each
Of the three classes Of incomes above named, the
full rate for that class is to be paid by unmar-
ried men. A reduced rate is to be paid by mar
red men, and a still further reduction is to be
made in favor Of the fathers Of families. In this
last named class, moreover, there is to be
further graduation according to individual cir
cumstances so that the more children a man has
the lower will be his tax rate. This provision
is, of course, intended to encourage philOpro-
genitveness and to increase the birth rate and
it may be that it will in some degree achieve
that purpose. Logically it should do so, if. as is
generally assumed the low birth rate is due to
economic conditions. If only a similar sliding
scale were provided for mixed incomes, as we
have suggested, the proposed measure would be
an almost perfectly scientific one. Even as it is
put into practice for the adjustment of social
burdens according to social conditions. and of
the encouragement of industry and population by
fiscal enactment.