Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-02-06

Adoo have said that the extra funds !
needed by Uncle Sam should be raised
mostly by internal and excise taxes.
This announcement hit Congress with !
loud splash, and viii continue to-
cause ripplcs aud even waves FOR some
time. Some Of the Concrcssiucu greet !
ed the idea with JOY. proclaiming that (
the rich should pay tho cost OF national (
defense because it is wealth that is TOT
II" dofendcd-aud incidentally because
poverty has most or the votes other
congressman voiced the widespread
American aversion TO anything ap-
preaching direct taxation. Announcing
that they were pledged to oppose IT,
SO oar internal revenues are sure to
receive great deal OF attention. from
this Congress
the 9'% nsome ' 5as F syrs.d" eo4%
taxes upom liquors tohaccos. playing
cards. "icorarSarinc and fllcd cheese.
Ihcs" internal revenues. however are
not yielding IS much as they should.
The decrease I'm TN. revenue from
SDitituouS ana fcrmcnted liuriors. ana
tho failure Of the income tax to pro
duce as much as was expected. arc ,y,o
i'npoitan; factors in Uncle sam pres
.nt financial embarrassment
Revenue From Liquor Dccrcn.Iur.
Furthermore there Is "a strong re-.
"ill continue 10 decrease. The prohihi-
ton sentiment is rapidly spreading.
and steadily emitting down the con.
sumption OF liquors. In the fiscal vcal
Of 1915. the revenue receipts frnni
spirits were over $4,000 600 less than
III 1914 representing a decrease OF
nearly 10 per cent. az course. ,hjg ma,.
have been due ia part to the unsettled
business conditions during the fiscal
car of 1915. bGt IL mcverthclcs. seems
certain that this old and iupottau,
source Of revenue is doomed "a dw-indIc
THIS presents large problem in ma
uonal hnanc" the American pcopI.
nave long been accustomed TO q Heavy !
tax upon lidGor. You paw aboi!t conf,
TO III" Federal government, for cv.,.,. !
ofihh ~ whisky YOU take. There is no |
othrr commodity which would hear
anywhere nearly so great a burden ori
taxation.
TN" income tax was intended 10
MAKE good this loss OF internal rcyc
n"c' ana INC decrease in customs du-
tics Following the passage OF the I'm
nerwood tariff. II yielded $50 600 ono
IN 1919 but it's workings were FAR from
ideal. In tho first place it's admins
tration proved expensive and difficult.
and IN the second place f. fell unon
a surprisingly small proportion Of the
population. II VIC allow a family or
hve for every married man who maid
the income tax, We find that this bur
den wa5 borne ~ only ! - per cen.
OF the population of the United Statcy.
the total number actually paying rhc
tax being S5.,515.
Rcars HenviIy on Wcaithy
\ very large proportion OF this hur-
den is borne by tia still smaller class
Of the yer! wealthy. for the figures
SHOW that there arc more persons in
The United states having incomes OF
more than 100000 q year than there
are those who have incomes between
100000 and 100000 This it'll. group
OF the very wealthy pays Sc tremendous
proportion Of the income tax
Despite All these drawbacks how
ever. tho income tax is the method OF
raising internal revenue which has ,
been adopted by nearly all OF the elder ,
countries in Europe /, is based upo, .
the fundamental theory OF taxation. !
first announced by Adam smith in his
Wealth Of Nations that the burden
must be borne ny all in proportion to
ability to pay.
The income tax apportions the bur.
den according to ability, All right but
il does not reach all the population
nor ans great percentage OF it, Critics
OF the law also point out another dam
ger IN this situation. Since the tax
is paid by such a very small propor-
ton OF the voters politicians will al
ways he ready to increase the income
tax. because in that way they can raise
revenue without affecting the interests
OF the great majority of their CON
stitucnts
-Anothc. point raised is that the IN
come tan may he regarded AS putting
4 premium on improvidcncc ana a
penalty on foresight and frugality. The
spender never works up to taxable
income. while the man who started
just az poor but worked and saved. is
soon paying an extra share toward
running the nation.
Income Inn Here 10 Stay.
Nevertheless, 1T seems clear that the
income tax is with us to stay--that it
will become a larger and larger factor
in our national life An increase in the
income tax will make up the loss Of
revenues from liquor. and il is also
ono of the available methods Of rails
ing the extra revenue needed now.
There arc two ways Of increasing
the yield from the income tax. Either
The amount levied may be increased
or tho exemption may he lowered SO
that more persons will have to pay. 1t
is evident that IL the income tax is
10 he a fair ono. the exemption should
he lowered so that u larger proportion
OF the population will he reached. As
il stands now. unmarried persons whose
incomes are less than $4,000 and mar
ricd persons whose incomes less
than $4,000 arc exempt from an income
:aA. Compare this With Great Britain,