The citizen. (Honesdale, Pa.) 1908-1914, 1913-05-02
INCOME TAX INJUSTICES.

There are several provisions in the
income tax section of the new tariff
bill that are puzzling salaried men
who are made subject to the pro-
posed levy. Why exempt "the COM
pensation of all officers and en-
ployes of state or any political sub
division thereof" If this is to ap-
ply to present terms it may be justi-
fed on the ground that some con-
stitutions, possibly all, forbid the
diminishing of compensation after
appointment or election. That is
the reason the present President"
has been exempted and it also eX-
plains exemption of "the judges of
the Supreme and inferior courts of
the United States now in office"
but the language of the bill as to
state officers and political subdivis-
ions is ambiguous. Many such Off
cials are paid handsome salaries and
they are just as well able to stand
a federal income tax as are men in
private life.
The stipulation that income tax
shall be paid at it's source contains
an obnoxious provision. The en-
ploye receiving a salary large
enough to call for payment of the
tax-that is, in excess of $4,000-is
required to disclose to his employ
er, under oath, all other sources of
income, whether they be his own,
his wife's or his family's. This is in
order that the government may col
lect a full tax. The plan puts the
employe at a disadvantage with his
employer and is likely to estop de-
mand for increase of salary, how
ever just, if indeed it does not, in
the case of Gradgrind, lead to re-
duction. 1t is not just thus to force
disclosures that may work harm to
the individual Let him make his
return as to income from sources
other than his regular employment
to the revenue office, where it be-
comes a confidential matter and can
not be used adversely. 1t is impos-
sible for man to be drawing what,
to his employer, appears to be an
ample salary, and to have an appre-
ciable income otherwise, but never
! theless the demands upon him may
be of such nature that he is actually
hard pressed. Still human nature
is human nature, and an employer
might take advantage of knowledge
| gained under this act and either
| ohdNG SOLlGluluS OIL HIS salary OF dl
least refuse to put anything on, mer-
! tied or not.
Another injustice is the taxing of
insurance surplus. Suppose a man S
annual premium be 5000 and his
dividend $40. He sends the COM
pany $160. But the income tax is
50 on that 5000 and the company
must pay it, Will the company do
so out of its own funds? Not at all.
Instead of your dividend being $40
it will shrink to $3S. So you see
every man who is insured, whether
his income be $4,000 or not, will be
expected to carry part of the un-
necessary burden that it is intended
to put upon the people in order to
test out the theory that a tariff for
revenue is preferable to a tariff for
protection.
Instead of the so-called rich, which
in this instance includes men with
an income in excess of $4,000 up to
and including Carnegie, Rockefeller
Morgan and others, estimated al
from 100000 to 100000, or a few
thousand more, paying this tax, there
are several million families who will
be forced to go to the receiver OF
custom. You can figure out fol
yourself whether it is a prospect tc
be relished, particularly in its in.
quisitorial phases.