The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1913-04-28
THE INCOME TAX BILL
Contains a Little Joker Which, Strange
to Say, should Make the
People Smile
tBy clyde H. Tavenner, NJ c)

Washington, April 25.-Yes. there is
a Joker" in the income tax bill But
in this legislation, for a change, the
Joker" is all in favor of the people.
Possessors of swollen fortunes were
much perturbed by the pending income
tax legislation, and when the bill fin
Ially issued from the printers they read
il with interest The first ,aragra phs
were disquieting. They fixed the rates
|of taxation on private incomes, one per
cent on an income of over $4,000 and
under $4,000, two per cent on as much
of the income as is above 81" 900, three
per cent on all of t above $4,000 an
nually, and four per cent on any excess
of 100000 per year. Under this grad
nation a plutocrat like John D. Rookie
feller will be required to pay four per
cent income tax on all his income eX-
cept 10000 per year. This was alarm
ing. 1t was not until Wall Street read
down to the incorporation section that
it felt that it had been judging the
Democratic House too harshly. For,
while individuals are assessed on a
graduated scale, corporations are given
a fiat rate of one per cent no mat
ter how large their annual profits.
Even the great steel trust will be re-
quired to pay but one per cent tax on
its vast earnings.
When the Wall street lawyers read
this far they smiled cynicaIly. Yes,
they had been too hasty in condemn
ing the Democratic House. Here were
the corporations receiving better treat
ment than individuals II seemed al
most like old times. But the smile
faded as they read on into the ''ioker,"
For while the corporations escape the
graduated tax, the stockholder in the
corporation doesn't Up to $4,000 the
stockholders income from corporation
dividends is exempt from taxation-the
corporation itself having already paid
the one per cent of this amount. But
on dividend income above $4,000 the
stockholder pays one per cent, above
$4,000 two per cent, and above $780,
900 three per cent.
1t didn't take Wall street more than
a minute to figure out that this meant
that the small stockholder, the widow
who invests the proceeds of her hus-
bands small life Insurance policy in
stocks, the small investor everywhere,
will be exempt from excessive taxation.
L will put the chief burden of taxation
on the rich alone.
Wall street would have much pre-
ferred to have the corporations them
selves pay the graduated tax. For
then the smallest stockho1der, the hold
er of a single share would be re-
quired to contribute from his slim divi-
dends to pay the four per cent which
such corporations as the steel trust will
have to pay on the bulk of its earn
ings.
And in case the rich man would try
to evade the taxation on dividends by
using the $4,000 exemption provision
that is, by scattering his investments
among many corporations so that his
dividends in no individual case amount
| ed to more than $20,OO0-the income
tax bill specifically provides that ir
| assessing incomes from dividends. al
of the dividends from all sources must
be treated in a lump. The individual
gets his single $4,000 exemption and
that is all
| The pending income tax bin is one
Of the most progressive measures eve1
submitted to Congress with hope OF pas
sage. From the first to the last para
graph it is pregnant with progressive
ism. Cleverness, even craft. has beer
fused by its framer, Representative Cor
dell Hull of Tennessee, but used t,
benefit the common people instead o
the great financial interests.