Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-07-08
EXTEND THE INCOME TAX.
An Argument for Raising All Fed
eral Revenue BY This Means.

To the Editor Of The Star:
The income tax law as placed on the
statute books is entirely inadequate
inasmuch as it does not raise sufficient
revenue to meet the expenses of the
government. The graduated scale of
the income tax should include a great
er number of people
A very significant fact is disclosed
concerning the concentration of wealth
in the United States, in the report of
the commissioner of internal revenue.
The total number of reported incomes
of half a million and over is ia. New
York has 102, Pennsylvania twenty of
the remainder and Illinois fourteen.
The total collection under the law for
the year ending 1915 was s41.046.165-
The concentration of great wealth in
New York and other large cities has
bearing on the expediency of amending
the income tax law that the burden
will be placed justly where it belongs.
AS matter of Justice well as pub
lie policy this wealth through its pos
session and control should carry its
full share of the whole national burden.
The vast accretionS of wealth which
those gigantic incomes and fortunes
represent are very largely the inevita-
Bile result of the common activities of
the communities and they should bear
very much greater proportion of the
| public charges as they derive the
greatest benefit from the government
| Increase the rates on the surtax and
| lower the amount to which it should
! apply. Why tax labor indirectly when
| it can he done directly under a proper
income tax law?
England raised previous to the war
| S236.345.000 on incomes. and England
contains less than one-half our popu-
| lation and wealth. All told, England
| taxed her wealth. incomes and inheri-
tances to the extent of $3S0,115,000
| and collected 45 per cent of her reve-
nueS from these sources alone, and we
| collected only per cent of our reve-
| nues from wealth incomes and inheri-
| tances, levying a tax of from only l to
| per cent, and only per cent on
! 100000. We should be following an
, almost universal example of modern
governments if we were to draw the
| greater part or even the whole of reve-
nues need from the income taxes
| by this method of direct taxation. 1t
| seems to be the only logical solution
/ of the question of revenue. Place an
income tax of a of l per cent on all
! salaries of $1,000 and upwards. " of
/ per cent on $4,000, per cent on $4,000.
not exceeding $4,000; 2 per cent on
| $1,000. not exceeding 100000; 3 per
cent on $4,000, not exceeding $4,000: 4
| per cent on $4,000, not exceeding $780,
, 900: per cent on $4,000, not exceeding
| $4,000; per cent on $4,000, not ex-
| ceeding 100000; per cent on 100000.
not exceeding $250.OO0; S per cent on
| s250,00 not exceeding 100000; 9 per
| cent on 100000, not exceeding $4,000:
| 10 per cent on $4,000. and all incomes
| in excess of that amount. There ought
| to be no exemptions. whether married
! or single.
| Include under it's provisions from
| twenty to thirty times many people
as under the present law. Those whom
the law affects will know exactly what
!, they are paying and that which is uni
| versally used in the homes of the wage
! earners In this country will be relieved
| of any further burden of indirect taxa
/ ton. There is great cry to revise the
| tariff from certain quarters, and not to
| tax the swollen fortunes of the rich by
| direct taxation.
| President Wilson put the question
| of taxation squarely up to Congress
| when he said we would only be follow :
| ing the universal example of modern
/ governments if all our revenues were
| drawn from income tax sources. Let
| US see how far Congress will go in car
rying out his wishes. Ample provisions
! can be made by amending the present
| income tax law and it will not interfere
one particle with the business interests
of the nation. We should, at least, de-
| rive S400000000, under revised in
| come tax law. also lowering the rate to
! which the surtax should apply.
| From this revenue ample provision
can be made for national defense and
will place the burden upon those who
derive the greatest benefit from the
| government and receive the protection
they are demanding and not place any
| further burden upon the overtaxed
| wage earners of the nation.
J. J. DORE.