Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-23
THE INCOME TAX.
W.-Japan's Remarkable
Rates.
BY Frederic ]. Haskin.

Nowhere else in the world can a peo-
pie be found who are moro heavily taxed
than are the Japanese. Certain 1t is that
II the people OF the United States. who
habitually complain Of their high taxes,
had been educated up to the Japanese
standard OF taxpaying they would re-
gard our present taxes as feather light.
In the first place we must remember
that Japan is not as big as California.
and that it's arabic land. II placed in one
body. would not make greater amount
OF territory than the State OF West Vir-
gina. Then IL must be borne In mind
that Japan has a population 80 dense
that a similar density In the United
States would give US more than a billion
inhabitants. With this in mind, 1t Is
interesting to reflect that the 6O.O0O,OOO
people who inhabit this small territory
must not only make their own living, but
must contribute annually q quarter of
billion dollars to the national treasury.
Five dollars per capita where wages are
less per day. as rule. than they are
per hour In the United States! Small
wonder that Japan groans under the
burden. and little surprise that its gov
eminent Ievies the highest income tax
in the world!
There are some striking things about
the Japanese income tax law, and none
Of them more so than the provision that
corporations and stock companies shall
be taxed at lower rate than individuals.
The tax on an income Of $4,000 In the
hands of an individual is 20 IS per cent;
in the hands Of q corporation or company
having more than twenty-one share
holders 1t is 1926 per cent. The exemp-
tons in Japan also are low. Any one
who has an income OF more than $75
lector And he who has an income OF
as much as 100000 must pay one-third
Of it all in taxes each year.
The Japanese income tax law dates
from 1899. The rate was then fixed at
2b per cent on
Nation Groans all incomes
Under War Taxes. smn,,on ~ 1so
yens. or $75. The rates OF taxation were
increased during the war with Russia,
in 1904. and again after its close in 1905.
The promise was made that as soon as
the exigencies of the war were passed
the tax would be reduced to its former
status. but Japan still groans under its
war taxes, and as long as 1t maintains
its ambitions to be a world power there
is little chance Of any. reduction. The
rate is graduated from 4 per cent to 33
per cent.
The general scheme Of exemptions is
not a liberal one by any means. The
salaries OF on1cers and privates while en-
gagged in war are exempt, allowances to
widows. orphans and sick and wounded
soldiers come In the same category. as
do moneys received for travelling and
school expenses and the income of corr
porations not conducted for profit. Dou-
BILE taxation in the case of corporations
and companies il avoided by the pro-
vision that the income of an individual
derived from these sources may not be
taxed In the matter of differentiation
between earned and unearped income, the
usual practice is almost reversed. In
order to encourage the formation OF cor
porations the tax on the incomes derived
from their bonds 10 only per cent. 1t u
probable that this same desire IL re-
sponsible for the provision that the gem