Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-04-25
Misesllaneuus 8eaains.
THE INCOME TAX LAW

There is Joker in II But Il 10 Not
Against the Poor Man.
Yes, there is Joker" in the income
tax bill. says Washington dispatch.
But in this legislation, for change,
the Joker" is all for the people.
The possessors Of swollen fortunes
were much perturbed by the pending
income tax legislation, and when the
bill finally issued from the printers
they read 1t with a great deal Of inter-
est. The first paragraphs were dis
quieting. 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 as
much as Is above $4,000, three per
cent on all of it above $4,000 annual
ly, and four per cent on any excess Of
100000 per year. Under this gradu-
alton plutocrat like John D. Rookie
feller will be required to pay four
per cent income tax on all his income
except 100000 per year. This was
alarming. 1t was not until Wall street
that 1t felt that perhaps 1t had been
judging the Democratic house too
harshly. For, while individuals are
assessed on graduated scale, corpora
tions are given fiat tax rate Of one
per cent no matter how large their
annual profits. Even the great Steel
Trust will be required 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 treat
ment than individuals. 1t seemed al
most like old times. But the smiles
For while the corporations escape
the graduated tax, the stockholder in
the corporations doesn't. Up to $20,-
900 the stockholders 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 incomes
above $4,000 the stockholder pays
one per cent, about $4,000 two per
cent, and above 100000 three per
cent. .s
1t didn't take Wall street more than
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 in
stocks, the small investor everywhere,
will be exempt from excessive taxa
tion. 1t will put the chief burden Of
taxation on the rich alone.
Wall street would have much pre-
ferred to have the corporations them
selves pay the graduated tax. For
then the smallest stockholder, the
holder Of q single share, would be re-
quired to contribute from his slim
dividends to pay the four 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 US
ing the $4,000 exemption provision
that Is, by scattering his investments
among many corporations 80 that his
dividends in no individual case
amounted to more than $20,000-the1
new income tax bill specifically pro-
vides that in assessing incomes from
dividends, all Of the dividends from
all sources must be treated as lump.
The individual gets his single $4,000
exemption and that is all. t
The pending income tax bill Is one
Of the most progressive measures ever
submitted to congress with hope Of
passage. From the first to the last
paragraph 1t Is pregnant with pro-
gressiyeism. Cleverness, even craft,
has been used by its Trainer, Repre-
sentative Cordell Hull Of Tennessee,
but used to benefit the common people
instead Of the great financial interests.