The daily sentinel., 1913-04-24
JOKER FOUND
IN INCOME
TAX BILL
Queer Twist Of Words, However
favOTS the Common Peo-
pie and Not Trusts.
OBy CLYDE ~. TANENNER,D
(Member of CongreSS.)

Sentinel Special Service.
Washington, April 24.-Yes, there
is Joker" in the income tax bill.
But in this legislation for change,
the Joker" is all in favor of the peo-
pie.
The pOssessors of swollen fortunes
were much perturbed by the pending
income tax legislation. when the bill
finally issued from the printers they
read it with a great deal of interest.
The first paragraphs We're disquiet-
ing. They fixed the rates Of taxation
on private incomes one per cent on
an income of over S4 1000. and under
100000, two Per cent on as much of
the income as is above 500, 900 three
per cent; on all of it above $4,000
annually, and four per cent on any
excess of 500. 900 per year Under
this graduation a plutocrat like John
u. Rockefeller will be required to
pay four per cent income tax on all
his income except 100000 per year.
This was alarming. II was not until
Wall Street read down 10 the cor
poratiGn section that it'felt that per-
haps it had been judging the demo-
cratic house too harshly. For, while
individuals are assessed on a gradu-
ated scale, corporations are given
flat tax 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 cynically Yes,
they had been too hasty in condemn
ing the democratic house. Here were
the corporations receiving better
treatment than individuals. 1t seem
ed almost like old times. But the
smiles faded as they read on into the
Joker"
For while the corporation escapes
the graduated tax. the stakeholder in
the corporation doesn t. Up to S20,-
900 the stockholder's income from
corporation dividends is exempt from
taXation-the corporation itself hav-
ing already paid the one Der cent on
this amount. But on dividend in
come above $4,000 The stakeholder
pays one per cent, above 100000 two
per cent, and above 100000 three
per cent
1t didn't take Wall Street more
than n minute to figure out that this
meant that the small stockholder the
widow who invests the proceeds of
her husbands small life insurance
policy in stocks, the mall investor
everywhere, will be exempt from eX-
cessive taxation. II will put the chief
burden of taxation on the rich alone.
Wall Street would lave much pre-
ferred to have the corporations them
selves pay the graduated tax. For
then the smallest stOckholder, the
holder of a single share would be re-
ouired to contribute rom his slim
dividends to pay the our per cent
which such corporations as the Steel
Trust will have to pay On the bulk of
its earnings.
And in case the rich man would
try to evade taxation On dividends by
using the 50, 900 exemption provis-
ion-that is, by scattering his in
yestRent among many corporations
so that his dividends In no individual
case amounted to more than $4,000
the new income tax Dill specifically
provides that in assessing incomes
from dividends, all OF the dividends
from all sources must he treated as
lump. The individual gets his single
100000 exemption and that is all.
The pending income tax bill is one
of the most progressive measures ev-
er submitted to congress with hope of
passage. From the first to the last
paragraph it is pregnant with pro
gressiveism. Cleverness, even craft.
has been used by its framer, Repre-
sentative Cordell Hull Of Tennessee,
but used to benefit the common peo-
pie. instead of the great financial in
terests.