The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-01-13

returns under the former act was |
3e5.33S, of which e24,2z0 claimed no
income Dr. less than $4,000, and
therefore We're exempt. h new law
allows no exemptions and Il is ey- |
pected that 10000 corporations here
toforc exempt will now have to pay !
an income tax. |
Proposed Income Tax. |
There are three types of income |
Ax-the Presumptive, the Lump-sum
and the Stoppage-at-source. The
first is handled somewhat like the
personal property tax OF New York ,
State. In that State a commission es- |
Inmates the gross personal property Of
the taxpayer: if too low or about
right, nothing is said in regard to 1t:
II too much, the party makes com !
plant and it is adjusted. BY raising
the amount yearly. sooner or later the
commission gets at an approximately
correct amount.
In he Lump-Sum Tax. the type
that has been used in this country and
is now in use in Germany is less OBJ
tectionable. especially in "a -pafernai
government like Germany: bat 1t is
extremely unpopular everywhere and
much less efficient than the English
type. known as "Stoppage-at-source
Income Tax"
This "Stoppage-at-source" methO
Is where the tax is collected by the
| prayer. It will be better understood
when its practical workings are look
| ed into. For example,: A corporation
| pays the con tax upon h coupons
Of bond issues and deducts it from the
amount set aside for the bondho}ders-
II il declares a dividend, it pay the
income tax on the dividend and pays
the remainder OF the dividend to h
stockholders, n should 1t have q
larger income thar the interest on its
bonds and dividends declared, it pays
to the State an income tax on the
surplus A nortgagor pays not only
the tax on his land. but also the in
ON taX on the interest. returning
4 the tax receipt as part of his interest
to the mortgage. A renter pays the
income tax OH his rem and I'm the
part Of his rent. Employers return
a list of their employees. pay the IN
come tax out Of their salaries, return
ing the tax receipt as part Of their
wages.
/ h "StOppage-at-source" is the
method patterned after in this coun
try ana Incorporated into the tariff
bin recently passed. There are some
, minor defects t1 this bill and the ru}-
ings Of the Internal Revenue Depart.
ment have been sought to correct ant
4 SAA( SASAAAs OAA SAAOA aAA
it is rather a remarkable piece OF leg
0 iS!Ation and will cnrne very near get
ting all the revenue available from
incomes that are sought to be taxed.
II 10Y OF collecting cou
: pOns that may be taxable or exe1np
: according to the terms Of the deeds O
= trust or exemptions allowed to sins3,
) or married coupon owners has caus
: ed mUct Inconvenience and increased
vastly the amount OF clerical work 0
. the corporations, but the real Ok
: jections lie deeper. There is little t.
. be said against the principle Of tn
income tax, but il unauestlonabf
!. should be applied to all alike Ther
toe. it can only be looked upon wit
o the srayest apprehension because Q
% the ease with which increased gov
ernmantal expenditures and extrava
. gancieS are met by simply advancin
the rate: for example, il / per cen
produced $4,000. 000, 2 par cent wi
produce s17o, e0o. 900. and will ne
q collection being practically the sam
We have noted how the rate /
= England has increased from l per Gel
g to 3.S per cen on earned and from
per cent to ga per cent on e
!. incomes. how the revenues OF tn
!, Crown from the income tax have il
creased in thirty ears approximate
~ 100 per cent, and furtner, now
:. the United States during he yea
from 1852 to 1872 hen the incon
- tax was in force. h rate ran to
- per CEN on incomes from 100000
SIS, 200. 90 and 10 per cent abo'
- IS, OOO. 90. Let us note also no
- North Carolina, which heretofo.
!. levied a tax OF I per cent IN all j
s comes over 81, 10000, has during To
- year increased it as follows:
Narff Cornlin3-
Excmpis incomes up to s.,
n on........ 81 .25O!OO to s.. 100
NC on S., IL 90 to $1,000
, g. on. S. COG. 90 TO SIC, 600
: 21ag in excess of $40 900
we would note also the presse
Federal income tax which esemI
100000 and under to single III
- and $4,000 90 and under to Inarri
"a couples living together. he rate
then named at ! per cent above the
- figures 10 to $4,000 and al advanc
- tax above this. making
io ooz from X2O. 100 co to SO. CO..