Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1913-04-26
INCOME TAX IN
MANY NATIONS

Rates, Rules and Exemption Are
Constantly Changing - States and
Cities Have Schedules Of Their Own.
Now that the subject OF the income
tax Is attracting so much attention In
America IL Is interesting to note how
other countries apply the system and
what results they obtain from II. An
exact comparison OF the tax proposed
In the Underwood bill with those col
lected elsewhere Is not easily drawn,
for the reason that rates. rules aud ex-
emptions the world over are constant
ly changing and that many other
forms OF taxation are hard TO distin-
guish from the income tax proper.
For instance. the separate German
states levy income taxes. Some Ger
man cities do also. and the imperial
German government IS about to take
an especial contribution from large in
comes. presumably paid In five install
ments. so that for five years and per.
triple income taxes to pay.
In Great Britain the estate taxes
levied as death duties bring In reve-
nue. OF Sl25.O00.000 a year. They are
graduated. rising to and 10 per cent
on large estates. on those OF over $l5..
100000 the first S5.000.OO0 pays 10 per
cent and the remainder 10 per cent.
British Exemption Varies.
The fritish income tax proper was
levied Off and on during the Napoleonic
wars and steadily since 1912. The ex-
emption has varied from $500 to $500
and is now the latter figure. The rate
has varied from less than ! per cent
upward
During the Bocr war II rose to lid.
In the pound. or nearly 6 per cent. II
was not then graduated. super tax
is now levied. and the principles Of
graduation and discrimination have
been further introduced. though to q
less extent than on the continent.
The tax is producing this year S220..
100000. more than twice what the I'm.
derwood bin contemplates. An earned
income OF $4,000 pays ID in the pound
on 5000 and lid on $1,000 $500 being
exempt. An nnearned income pays
lid In general the lowest rate Is 3D..
or about 3.75 per cent
The highest Is lid. with n super tax
OF Cd on incomes over $4,000. or In
all little above per cent. Besides
the general exemption there Is spe
cial exemption OF $50 for each child
under sixteen.
A man with five children and 81 500
a year pays I'D. In the pound on $50,
or about $40 tax.
The Austrian Method.
Austria divides the income tax into
very many minute gradations. The ex-
emption is $3.50. but above that limit
the entire income is taxed. The low
est rate Is 0.6 per cent. Strictly speak
ing. there Is no "highest." The rate
continues TO rise ms the income In
creases
At Si2.500 the tax paid is Si.937.50.
would pay close TO 3 per cent.
There are various exemptions for the
emperor. diplomats. soldiers. families
with children. the blind. crippled. bed
ridden. etc.
The German income tax laws vary
with the state In Prussia the ex'
emption Is S225. An income of $3.50
pays Si.5O The rate averages 3 per
cent. but large incomes pay 8 per cent
upon the greater part. Earned incomes
are taxed less than unearned ones. and
there are numerous exemptions.
Saxony has lis gradations and taxes
an income Of 500 81 cents. There Is
an abatement for children. Large in
comes pay much higher rate than
moderate ones Bavaria taxes earned
income up 10 per cent. unearned In
come up 10 per cent.
The exemption In the case Of unearn-
ed income Is only $3.50 II you have.
say. 500 unenrned income II pays 80
cents tax.
In Italy and Spain.
lut uA III italg At0to ~ ~ Ftt Nthe
on large incomes. but takes the place
OF other taxation 10 an extent not here
contemplated Much the same IL true
OF Spain.
New Zealand. a country very ad.
vanccd In social legislation. exempts
incomes up 20 Si.500 Incomes over
$1,000 pay ) per cent. and SO do cor
pornflons
In thirty-seven countries OF the world
the income tax Is estimated to yield
one.half OF all the returns from direct
taxation. In Great Britain II yields
more than half
Wisconsin has n state income tax.
The exemption IL $500 for single per-
son. S1.200 for husband n wife and
$500 for each minor or other depend
ent. The rate varies from 10 per
cent
A Wisconsin millionaire. under the
combination OF state and federal taxa.
tion. may presently be called upon 10
pay 10 per cent upon the greater part
-