Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-22
THE INCOME TAX.
XIV-The Fight in France.
By Frederic ]. Haskin.

rance VIII join the procession OF n1ty-
odd nations which have income tax laws.
and II it falls in behind the United States
it will be the fifty-fourth nation to have
such a tax as part of its fiscal system.
Then more than two-fifths of the earth's
population will live under income tax
laws and the total collections from such
taxes will go far up past the billion
dollar mark.
The French program as adopted by the
chamber of deputies horrows from every
source, and it is said that no nation
which ever attempted to enact an income
tax law went so infinitely into the whole
matter as the French have done. The
bill as adopted divides incomes into seven
classes or schedules. as follows: Incomes
from lands, incomes from houses, in
comes from movable capital. incomes
from business profits. incomes from agri-
cultural profits. incomes from wages and
salaries and incomes from professional
earnings and all other sources not other
wise provided.
On the first three classes of incomes
the rate is fixed at per cent, with 31z
per cent on in
Rate Of Tax Changes comes from
on Various Incomes. -. ana nor
cent on professional earnings. agricultural
profits and wages and salaries. In the
case Of the house tax the income is con-
sidered to be the rental value of the
property less one-fourth in the case of
dwellings and less two-ffths in the case
of factories. These deductions are made
SO as to allow for repairs and deprecia-
ton. In the determination of the income
Nd % t. 20 no oc
rental value of the land less reduction
of one-fifth for maintenance The in
comes from houses and lands are to be
determined every ten years. Where the
incomes are small various attachments
are made.
Movable capital profits are considered as
the income from personal property, in
Guiding nearly all government securities.
Wherever possible the tax on this class
of incomes is collected at the source, for
instance. on the corporations and associa
tions that pay interest or dividends.
Mortgages pay their tax by means of
stamp, and securities taxes are collected
through bankers.
Business profits are regarded as those
which arise from industrial or CONNER
cial operations. The assessment is made
Upon the basis of an average of three
years income. and taxpayers are invited
to make returns of such incomes. Those
having incomes in excess of 300 francs,
or approximately 81 600. are required to
taxes If he Is not satisfied with report
he may ask modification Of it within
twenty days. II this is not Forthcoming
the controller may make an assessment.
which shall stand unless changed by the
courts The taxpayer cannot be required
to show his books. but If he is caught
attempting to dodge the tax it is doubled
Incomes of this nature up to go francs
sliding scale on incomes UP to 10000
francs.
~
In fixing the tax on incomes from agri-
cultural operations the income is pre-
Agriculture Pays one-half of the
Its Shares of Taxes. such pa arIa a. 'G is
under 800 francs and two-thirds of the
rental value for such part as is over that
amount Where the income does not ex-
coed 1000 francs. 1,250 francs are ex-
empt, and there is a sliding scale OF
attachments on income up to 1000 francs.
Where the income goes above 1900
francs there are no exemptions allowed.
In the case of wages, salaries and pen
sions the tax is advanced by The indivtd-
uals, associations or governments which
pay them. Every employer Is required to
hand in a list of employees with the
amount paid them. In case of incomes
under $500 francs. or approximately
81 Coo. two-thirds of the income is -ex-
empt, and above that amount certain
attachments are made. calculated partly
on the basis OF the size Of the income and
partly on the basis of the size OF the
family
sional incomes. Is the only one in the
whole list where compulsory declaration
applies 20 all having such incomes. And
even here they cannot be compelled 70
reveal any professional secrets In max
ing their returns There Is liberal ex-
emption and above that there are the
usual attachments up to the point where
the tax ceases 20 be hurdensorne.
In addition to the regular income tax
levied on all incomes. whether Of natural
or Of artificial
Complementary Tax" persons. there
Among Those Levied. What !. known
as Complementary tax" levied only on
natural persons who have an income Of
more than 5000 francs. This bears a close
resemblance to the English super-tax It
Is levied on those VINO reside In france
without having their domicile there. as
well as upon those who are domiciled
there In the case of the sojourners their
income is rated at seven times their
house rent There is no tax on the first
5000 francs. and thereafter each sue
cossive 5000 francs income PAYS an ad-
ditional ! per cent until an income Of
5000 francs is reached. when the tax be-
comes per cent on the income. II any
one who is required by law to pay this
supplementary tax tries to dodge It, or
any part of 1t. by false declarations, the
penalty is one-half OF the income con-
cealed. II he fails to make any returns
at ALL the penalty is three times the
| amount of the tax.
1t will be seen from this account of the
French plan that 1t borrows what are
perhaps the best features OF both the
English and the German laws. Its sched-
corporated in the English law. but 1t diff
ferentiates more markedly between the
income that Is the sweat Of the brow anil
the income that is the product Of invested
capital. 1t establishes a lower exemp-
ton than the English law. and follows
the German idea of taxing the entire in
come after it reaches a point where the
; taxpayer incurs no hardships in paying it,
There is great care to save the necessity
Of nqLisitorial proceedings
After the bill had passed the chamber
of deputies 1t went to the senate where
1t was defeated. This served as rally
ing point for the forces opposed to in
come tax legislation: several societies
In opposition were formed. meetings were
held throughout the republic, and at least
a semblance OF public opposition to the
lieve, however. that the income tax legis-
lation has received only a Temporary set