The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-03
TAKING INCOME.
continued from Page one.1

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where the income of a person IL
thus paid at the source said Mr.
Palmer. "the benefit of the $4,000 ex-
emption will be allowed only where
notice claiming the exemption, &C
companied by an affidavit, shall be
served within the time specined by
the law, upon the person required to
make such payment at the source 1t
is the belief of the trainers OF
the bill that this provision, while OF
course, requiring large number OF
persons to act as tax collectors for the
government, will not result in any I'M
fairness, injustice or hardship"
Corporations and other business
men, he continued, usually conduct
their business with such system that
the returns, after they have become
familiar with the requirements of the
law. will be made without serious in
reference with the usual course or
business Under the system adopted,
Mr.. Palmer said, it was inconce1vable
to suppose that much of the tax, just
" due would escape the collectors.
"a couple of years experience" con-
tinued Mr.. Palmer, "in the operation
of the law will reduce the mountain
which business now sees on the horizon
to a mere mole hill. 1t will be just
as easy for corporation, in paying
the interest upon it's Indebtedness, to
nay to the party entitled thereto ninety
nine cents on the dollar and retain
for the government the remaining one
cent, as it now is for it to pay one
hundred cents to the holder OF us Cd
legation.
when a coupon on a bond payable
to bearer is presented to the corpora
ton direct from the owner, the with
holding of the tax will be easy; where
the coupon is deposited with a bank
for collection, it will be equally free
from difficulty. 1t is only where the
coupon is sold to another or used IN
trade, before presentation to the obi"
ger. that the operation of the law be-
comes troublesome. Even then, it is
not difficult, for the holder of the cou-
pom, if a taxable person whose income
is sufficiently large from other sources,
to permit him to secure his legal ex-
emption and deductions elsewhere, ara
show them in his personal return, Will
use his coupon just as he does now, ex-
cept that when 1t leaves his hand ne
will receive for it 80 per cent of its
face value.
eff however, the taxable person de-
sires to secure his exemption out of the
interest represented by the coupon, or
if his income from all sources shall not
reach $4,000, he will attach to his cou-
pom a notice and affidavit whereupon
his coupon will pass at its face value
Mr. Palmer discussed the exemption
feature of the law, which he said hao
been condemned in toto by many
critics of the measure, ION the pr1ncl-
pie that every person having an in
come should pay his due share of taxes
for the support of the government, anu
that the realizing sense of his respon-
sibility fasten upon his mind by the
payment of such a tax would operate
to inspire the citizen to enforce rigid
economy in the expenditure of public
In the first place." continued Mr..
Palmer, there is q point in the size
of an income, below which the eA-
pense of collection would be greater
than the amount of the tax The gov
eminent would derive no benefit from
such a tax and the burden upon the
consumer would be carried for no pub
lie use. .-..r..
THE present system of taxation is
Unequal favoring the wealthy and
weIl-to-do. If the proposed system |
shall be unequal, favoring the poor. |
the ultimate result of our entire system
IF taxation will become nearer to a |
general equalization than we have yet |
reached It seems to me also that it is |
The part of wisdom to leave free and |
that portion of every Ameri- |
an citizen which is necessary or many |
De required to rear and support his |
'amily according to the American |
he best manner which the educational |
system of the country affords.
1.-THE life insurance companies con-
end that being institutions, Continued |
Mr.. Palmer, mot for profit but for the /
mutual benefit of the policy holders, |
hey should be entirely exempt from |
axation or that all moneys returned to |
in whatever form, |
should be considered not as earnings of /
he company and, therefore taxable, |
)ut as the property of the individuals
n the company and returned to them
rom time to time.
1T is argued that the tax upon the
mutual companies necessarily paid by
he policyholders results in taxing the
Individuals whose total income from all
sources is within the $4,000 exemption.
This is true, but it is an Inconsistency
n the law more apparent than real.
The same thing is true Of all stock
FOLDERS in all corporations"