Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1916-07-14
INCOME TAXES FOR ALL.

| New York World: Under existing
laws less than one-half of l per cent
of the people pay an income tax. OF
the $50 900 persons who contributed in
1915, all but $4,000 were assessed on
incomes ranging from $4,000 to $50 900
year.
This is class taxation of the most
pronounced type. 1t not only exempts
the great body Of citizens, having in
comes of $4,000, if single, and $4,000, if
married, but il makes a sorry show
ing in its returns from the very pros
porous 1t might almost be called a
measure 10 tax incomes ranging from
$4,000 TO $4,000.
The new revenue bill goes from the
( house to the senate without change in
the exemptions, although the tax itself
upon all incomes below $4,000 is
doubled. 1t does not seem possible
that members of the senate consider
this proposition very seriously with
out discovering the weakness of the
theory involved.
AS to the comparatively small num-
Der who pay surfaces on incomes in
excess of $4,000, the problem is prob
ably one of collection rather than leg
islation. The evasiOns must be num-
erOus and glaring. National wealth
is increasing as never before in our
history. but tax payments on great in
comes show few signs of it.
To give this levy the proper scope
of national tax it should apply to all
incomes in excess of $1,000, possibly
$1,000 in the cases of heads of fam
lilies. Such a provision, instead OF
combining the tax to a few hundred
thousands, would reach many millions.
AS the money is needed for national
defense, the largest possible number
should be put under contribution.
When it was proposed in the house
the other day to reduce the exemption
to $4,000 and $4,000 it was stated that
by so doing no more than an additional
$5000,000 would be collected. This is
an absurdity on its face, but if these
exemptions were cut III two there
could be no question that the yield in
revenue would be very great.
In some foreign countries the exemp-
ton is less than 500. In Great Brit
ain it is 5000. Our Civil war income
tax placed it at 5000 and the rate was
) per cent. The per cent Of the pres
ent law if applied TO incomes above
81 900 or 81 500 would carry the pay
ments down to sums ranging from s.
TO s25 in millions of cases; it would
give our population muCh-needed !
acquaintance with the cost of govern
ment, and it would at once excite a
lively interest in all parts of the cOun- |
try In the collection of moneys due on
big incomes now hidden.
The internal revenue bureau has no
figures at present on the number of /
Americans having incomes in excess /
Of 81 900 or $1,000, but two recent pub /
locations throw some light on the sub /
ject. There are more than IA 900 900 |
depositors in national banks. In trade /
or likewise. men with net incomes of /
less than $1,000 are not apt to have /
natiOnal-bank accounts. According to /
the report of the Wicks committee, one /
New York farmer in three makes |
money-that is, acquires a surplus
and one in % makes $4,000 or more a |
year. There are more than 100000 |
owners of farms in the United States. |
1t is known also that there are many
small tradespeOple, well-paid mechan
les and prosperous professional men
now exempt who should be made TO
pay something as a matter of prin-
ciple and as a test of democracy.
Income taxes have come to stay.
More and more they must supeTsede
unequal and Juggling indirect taxation
The more widely they are distributed
the greater will be the popular Interest
in government and governmental re-
spOnsibility to the people