Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-08-02
GERMAN army NEEDS THE MONEY
And CITIZENS MUST PUNGLEUP

been reduced from .5O TO ID per cent
So the attention of the Reichstag was
drawn to the fncome-earning classes
income Tax Advantages.
Now taxes on income have two adj
vantages. One is that they can be
increased without increasing the cost
Of collection to the state. The other
is that IL the minimum taxable in
come is fixed fairly low, it is easy
to tell who has at least that sum.
With large incomes it is practically
impossible to prevent imposture.
There is a chicago man In this city
who tells of an investigation of prop
erty for assessment purposes in his
native town which ELECTED the fact
that there were only two gold
watches in Cook county. So it is all
over the world. A taxicab drive
through the west of Berlin will give
one ocular evidence of more large in
comes than officially exist in the
whole of Prussia But that matters
little. The small man whose employ
er is forced to give the state the
exhaustible fountain of income tax.
In this country income tax is paid
On $225 a year. But to ask people
with revenues of that sort to submit
to year of sacrifice would be the
lnkindest form of mockery. The COM
mission, in its wisdom, accordingly
set the lower limit at $I,250 a year
So that to all intents and purposes the
famous voluntary sacrifice of the rich
las been transformed into a supple
mentary tax on small incomes. The
proposals of the commission, which
will in all probability become law
without essential amendment, are in
brief as follows: The tax is Ieviable
en- property and income. Income is
theoretically treated az property.
From $3.50 to s12,5O0, incomes are
multiplied by six, and the owner cred
tied with counterfeit estate Of the
value of the product From $12,5 to
$4,000, the amount is multiplied by
eight. from $4,000 to $4,000 by ten,
and from $4,000 upwards by twelve.
The tax is then levied upon all es-
tates, real and counterfeit, according
tc scale. The first $4,000 marks ($12.-
500) pays Is per cent; the second
pays .35 per cent If you receive an
other 100000 marks the state will
take s per cent of it. From the next
100000 marks the state takes n per
cent. If you have still 100000 marks
of income, you pay IS per cent of it.
This brings the total up to a million.
On the second million IL per cent
must be paid; on another 100000,
1.3 per cent, and on an additional s.
100000 Ia per cent. Sums above To-
100000 pay Is per cent. An income Of
100000 marks, ts2,500,000) would
accordingly pay Ii, 900 marks tS31,.
1901, and an income of 20,000,000
marks would yield further 10000
marks, making in all 277,0O0 marks
1853, 250).
Property Taxed First.
Where property exists as we'll as
income. the property will be taxed
first then 5 per cent of the value of
the property will be deducted as in
terest, and the remainder of the in
come (if over 5000 marks) multiplied
according to the rule stated above and
taxed as property. Thus bank clerk
earning 5000 marks year will have
to pay Is per cent on his income null
tiplied by six, that is. on 10000 marks.
His contribution will therefore be 45
marks (s11.25). 1t sounds little
enough, but it will be found that an
astonishingly large proportion of the
billion comes from estates" of this
class
AS an example of how the measure
will work in practice. the following
cases are quoted A business man
owns property to the value of 10000
marks (S7,500), and earns annually
10000 marks fS2,500). Five per cent