East Oregonian : E.O. (Pendleton, OR) 1888-current, 1913-04-29


bin finally issued from the printers
they read it with great deal Of in
terest, The first paragraphs We're dis
Quietiug. They fixed the rates of tax
alton on private incomes, one per cent
on an income Of over $4,000 and under
$4,000, two per cent on us much of
the income as Is above $4,000, three
per cent on all of it above $5O,O0O an
nually, and four per cent on any ex-
cess Of $100,0 900 per year. Under this
graduation a plutocrat like John d,
Rockefeller will be required to pay
four per cent income tax on all his
income except 100000 per year. This
was alarming. It was not until Wall
street read down to the corporation
section that it felt that perhaps it had
been judging the democratic house too
harshly. For while individuals are
assessed on a graduated scale, cor
porations are given a flat tax rate of
one per cent no matter how large their
annual profits. Even the great Steel
1t would be better for the miners
per cent tax on its vast earnings.
When the Wall street lawyers read
this far they smiled cynically. Yes,
they had been too hasty in condemn
ing the democratic house. Here were
the corporations receiving better
treatment than individuals. 1t seemed
almost like old times. But the smile
faded as they read on into the
Joker"
For while the corporation escapes
( the graduated tax. the stock holder in
the corporation doesn't. Up to s2O,-
OOO the stock holders income from
corporation dividends is exempt from
taxation-the corporation itself hav-
ing already paid the one per cent on
this amount. But on dividend income
above $4,000 the stockholder pays
one per cent. above $4,000 two pei
cent, and above 100000 three pei
cent.
1t didn't take Wall street more thar
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 IL
stocks, the small investor everywhere
will be exempt from excessive taxation
1T will put the chief burden of tax
alton on the rich alone.
Wall street would have much pre-
ferred to have the corporations them
selves pay the graduated tax. Fo,
then the smallest stockholder, the
holder of single share, would be re
uuired to contribute from his slim di'
vidends to pay the four per cent which
such corporations as the Steel trus
will have to pay on the bulk of 1T
earnings.
And in case the rich man would tr!
to evade taxation on dividends by us
ing the $4,000 exemption provision
that is. by scattering his investment
among many corporations so that hi'
dividends in no individual case am
ounted to more than s2O,O00-the new
income tax bill specifically provide:
that in assessing incomes from divi
dends, all of the dividends from al
sources must be treated as lump
The individual gets his single $4,000
exemption and that is all.
~s~-~~
Now we can see why Dr. Friedman
lmade such a tremendous ado over hi:
alleged tuberculosis cure. He wanted
to sell it,
If Montenegro were about 10 times
its size its title ito Scutari would b'
valid. The powers of Europe operate
on the strong arm basis.
s~~OS~~~
1t would be beteer for the miner!
if mines were to be inspected before
the explosions instead Of afterwards
AAA&oAAAS
Don't forget there will be ball game!
every day this week.
S-~~a~~