The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-07-11
INCOME TAX AMENDMENTS.

The principal amendment that has
been agreed upon in the Senate to the
income tax bill is the one which handi-
caps bachelorhood and encourages the
married state. a man having neither
wife nor minor children to support,
must pay income tax on all Of his in.
come above $4,000. A man who is mar
ried is allowed $1,000 exemption on ac-
count of the support of his wife, and lie
is allowed also a deduction OF $500 for
each minor child living with him and
dependent upon him. Thus, a married
man having a wife and two minor
children living at home and dependent
upon him, will be allowed an exemption
of $4,000 above the stated limit, so that
he will be required to pay the income
tax on the excess Of his income over
$4,000. Bachelors pay on all excess
over $4,000.
The distinction is one which is gen,
orally recognized in European practice,
where the income tax has for many
years been a regular source of income
.. to the governments. In France the
law of 1890 eXempts altogether from
the income tax parents of seven chill
dren when they are subject to an in
come tax Of not more than ten francs,
And later laws make special abate-
ments for large families in the case
of taxpayers who pay small house rents.
| In Prussia an abatement Of fifty
marks is made for every child under
fourteen, in all cases where the tax
able income does not exceed 5000
marks. The Prussian law of 1906 gives
deduction of fifty marks for each
child, or other dependent; but provides
that three children shall entitle the
taxpayer to a reduction of one grade,
and five children two grades, a grade
representing the different rates of tax
alton.
In Great Britain deductions on ac-
count of minor children were allowed
| in the first income tax laws, 179S-1S16,
levied on account of the Napoleonic
wars. Afterwards these deductions
were abolished, "because they led to
such startling increases in large fami'
hes,' but later were restored under
stricter regulations, At present the
British income tax provides that whore
the total income is not over $2500,
deduction of $50 for each child may
be made. These figures we obtain
from the Springfield (Mass) Republi-
can.
1t will be noted that the deductions
made on account of wife and minor
children in the amendments as now
proposed in the income tax are very
much greater than those made in Great
Britain, France, and Germany. But
since they favor the marital relation,
they will doubtless be approved by the
country. 1t is stated that the large
reductions are made because Of the
greater cost of supporting wife and
children in this country than in France,
Germany, or Great Britain.
Exemptions on account Of minor chill
dren are stated to be particularly
caused by the child-labor laws, which
prevent young children from earning
money in factories or other forms of
labor. But this is probably fallacious
basis upon which to put the exemp-
ton. 1t should be based fairly and
squarely on the fact that it is the OBJ
ject Of the law TO favor and encourage
marriage and the rearing Of families.
To undertake to place It on other
grounds could hardly be supported in
$4,000 to $4,000 year is likely to put
his minor children to work in a fac
tory, or to compel them to engage in
any other form of earning money The
American father likes to keep his chill
dren at home, and always does so when
he can, If he enjoys an income of
say $4,000, (reserving Il thousand dol
lars for the support Of his wife,) that
is ample to keep his family at home,
and he would consider with scorn the
idea Of putting any of his minor chill
dren to work Based upon the PROPOSE
tion that a deduction in the limitation
of the amount upon which income tax
is TO be paid on account of wife and
children, is clearly defensible upon the
grounds of public policy in favoring
matrimony. But it is an unheard of
proposition to imagine that a man in
the enjoyment of an income Of $4,000 |
year would put his minor children
to work in factories or any other gain.
ful occupation, and is not to be con.
sidered at all from the American stand. |
point, for no American father would |
do it. The exemption, however. il |
placed on the proper ground of general |
public policy In the favoring Of wed. |
lock, is sound, thoroughly defenslble,
and will doubtless be approved by the
American people.
Responding to the suggestion that |
the canal machinery at Panama might |
be used in river improvements. Col !