The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-04-19
FEDERAL TAX ON INCOMES.

The people Of the United States
have been so anxious to employ a more
equitable and more direct method of
raising taxes for running the federal
government that they have gone to the
trouble of changing the constitution
in order that a tax may be collected
or the incomes Of individuals and cor
~porations, and an important feature
of the tariff bill, now being consider
ed in the house Of representatives, is
that which provides for assessing a
tax on incomes.
Under the provisions of this bill a
tax is to he levied on all incomes in
excess of $4,000, those incomes that
do not exceed the amount stated being
exempt from taxation.
1t is the contention Of the supporters
Of this plan that 1t will more equally
distribute the burdens of taxation in
that 1t will relieve the in the
requirement that values pay some
thing toward the support Of the fed
eraI government. Reduction of the
tariff will relieve the consumer. and
whatever OF revenue may be lacking
may he collected from those individ-
uals and corporations who possess
holdings Of sufficient value to be as
sessed under the provisions of this
act.
1t is estimated hat approximately
S1nO 000 nm NAV ho InrtyroI FrCn, thIe
new system Of taxation, including the
present corporation tax. This amount,
1t is believed. would make up for the
proposed tariff reduction under the
new tariff schedule.
1t is a we'll known fact that in a
great many cases large fortunes have
been enabled under defective tax laws
to escape their share Of the burden OF
taxation, and besides forcing such
values to bear their portion of the
cost of maintaining the federal gov
eminent this new plan will aid in
bringing values to light and enable
the state governments to collect much
additional revenue that is now being
lost to them because it cannot be
found.
Chairman Underwood in making the
report of the committee on this fea-
lure of the tariff bill, says that 1.-The
attempt has been made to provide not
only q source of revenue, but also a
Of redressing in some measure
the unequal tax burdens which result
from the practice of placing the feder-
al income upon customs M internal
revenue duties" a system of taxation
which inevitably throws the burden Of
supporting the government upon the
shoulders of the consumers and cor
respOndingly eXempting the men OF
large income, whose consumption of
ject to tariff taxation in a far less ag-
gregate degree than is hat Of smaller
income earners who expend the great
er proportion Of their for the
ordinary necessities Of life"
Mr.. Underwood further says that
owing to defects in personal property
taxation the larger incomes in the
United States have for many years
been able to escape with less than
their share Of general burden of taxa
ton, and this i~nequity will be, it is be-
loved, in part, overcome by the plan
proposed.
Those who have much require more
protection at the hands Of the gov
eminent than those who have little,
and on the basis of service rendered
the income tax assessment is made.
This does not please those who have
large incomes, but there is equity in
the plan and it will probably prevail,