The Barre daily times. (Barre, Vt.) 1897-1959, 1913-07-05
and the burden upon the consumer would

be carried for no public use.
"The present system of taxation is
unequal, favoring the wealthy and well
/ TO do. If the proposed system shall
I be unequal, favoring the poor the ulti-
mate result of our entire system Of taxa
ton will come nearer to a general equal
/ zation than we have vet reached. IL
seems to me also that it is the part of
wisdom to leave free and untaxed that
portion of every American citizen which
! is necessary or may be required to rear
and support his family according TO the
American standard and 70 educate his
childlen in the best manner which the
educational system of the country af-
| fords.
"'rhe country has shown that it be-
lieves in this new system OF taxation
and desires its permanency as part of
the fiscal system II is entirely prop
er. therefore, that in writing the details
of the law we should avoid anything
which might endanger the purpose and
intent of the American people in au-
thorizing this kind of legislation"
One of the chief criticisms of the
pending measure. Mr. Palmer declared.
was entirely due to a misapprehensiou of
its provisions regarding tire exemption
of mutual life insurance companies.
"The life insurance companies contend
that being institutions" continued Mr.
Palmer, mot for profit, but for the mu-
tual benefit of the policy-holders, they
should he entirely exempt from taxa
ton or that all moneys returned to pol
icy-hoders, in whateye form, should be
considered not as earnings of the COM
pany and, therefore. taxable, but as the
property of the individuals in the com
pany under the mutual plah, held for.
them by the company and returned to
them from time to time.
ut is argued that the tax upon the
mutual companies, necessarily paid by
the pOlicvbolders, results in taxing the
individual whose total income from all
sources is within the $4,000 exemption,
This is true, but it is an inconsistency
in the law more apparent than real The
same thing is true of all stockholders
in all corporations.
''The corporatio pays a tax upon its
earnings without exemption and such of
its stockholders as would not be tax
able because their incomes are less than
$4,000 are thus taxed to the extent of
their incomes which they receive from
the corporation. 1t simply amounts to
if an individual desires to
have for himself the benefits which ac
crue from doing business in corporate |
form, he pays to the government this |
very small tax as return for that bene- |
fit.
at is alleged that section r declares I
there shall be allowed as a deduction. |
amongst other things, the amount of
income received or payable from any |
source at which the tax upon such in
,ome. which is or win become due under
The provisions of this section, has been
for payment at the source in
-he manner hereinafter provided and
hat consequently the taxable person,
where his income from such source, ex-
'eeds $4,000. viii escape payment of
he additional or surtax, upon such eX
ess.
"a careful reading of the bill will
how that this is a deduction to be al
owed in computing the net income, not
II returning it for computation and as
essment. 1t is expressly provided that
very person subject to the additional or
urtax shall for the purpose of its as
essment and collection make personal
eturn of his total net income from all
In conclusion, Mr.. Palmer states that
o claim of infalliblity is made for the
ramers of the measure and that they ;
re aware that it viii be criticised by
he ablest minds of the country and at
acked in the courts and a meaning i'm
uted to words and phrases that was :
ever dreamed of by the men who penned )
hem. :