The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1918-08-31
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WAR TAX ARTICLE NO.
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| Washington, Aug. 31.-The income
tax as a means of raising war reve-
nue. really is nothing now to the
American people.
1t was inaugurated in 1861, at
time when money was needed to f.
nance the Civil War, and it continued
in operation until 1872. The frs. tax
on incomes was authorized at a rate
of three per cent on all incomes above
$500 per annum. This was increased
in 1862 and again in 1865, until in
comes between 5000 and $4,000 were
taxed at five per cent and those above
$4,000 at ten per cent.
There were few, If any, evasions Of
the tax, according to financial histor-
ians, and, in 1865, despite the fact
that the entire country was in an alb
normal condition because of thewar.
$50 ,050,0O0 was realized by that
means But the spirit displayed by
the patriots of that day in meeting the
obligations of the income tax, is but
typical of the willingness which all
of the people of the country showed
during that sad period, to rise TO the
emergency in the matter of shoulder
ing the burden of extra taxation.
A foreign minister noting this zeal,
remarked to Secretary Seward 81 am
not surprised to see your young men
rushing enthusiastically to fight for
their flag. I have seen that In other
countries But I have never before
seen a country where the people are
, clamorous for taxation"
This clamor for taxation on the part
Of the people was largely due to the
fact that at the beginning of the war
Congress seemed to delay when It
came to the question Of properly fl
nancing the struggle. A new tariff
) law-the Morrill, bill-which had been
Framed during the peaceful days of
1850, was enacted March 2, 1861, and,
while the revenue derived from 1t
1 would have been adequate had the
Icommerce of the nation remained IN
a normal condition, It was entirely In
D adequate when the commerce became
disrupted.
Loans were to be largely depended
= upon to furnish the war revenue, u
being thought by the legislature that
the system which had worked so vel
during the second war with England
and the Mexican war would be equally
successful during the time of Civil
| War. AS result the ratio Of loans
! ito taxes during 1S61-1S62 was 1882 tt
81; in 1898 as $551 to 81; in 1896
a las 1898 to 81, and in 1S64-65 as $2.9
as 1888 to 81 and in 1S64-8b Of
= s295 to 81.
- Secretary Chase of the Treasury
rather thought no extraordinary taxa
ton was needed beyond that necessary
to meet the interest on the new loan.
authorized and to reduce small par
of the debt annually. His tax recon-
mendation OF December 1861, was In
tended to yield only a small fraction
Of the amount expected from tn
loans. but he did ask for internal rev
enue duties and in January, 1852, Con
, lgress adopted a more determined pol
! icy and announced its intention u
1 enact a revenue measure which woul
| Weld $50 900 900 annually.
| The principle Of this measure wa
! to levy moderate duties upon iarg
number of commodities rather tina
heavy duties upon few. It include
rates upon Injuries represented D
r. spirits. ales, beer and tobacco; i
censes upon occupation, duties upo
n manufactures or products, auctio
II sales, carriages, yachts, billiard tapie
4 and plate; upon slaughtered cattl
III hogs and sheep; upon railroad
steamboats, and ferry boats, railroa
N bonds. banking institutions ana II
4 surance companies, upon salaries an
NAV of officers in the service OF u
4 United States; upon advertisement
81 income and legacies and an extend'
Visit Of stamp duties.
III From this 1t may be seen that tn
III system was very similar in nature
I the war time system now in vog'
and that the new measure Of the pre-
! ent day may be said to have be-
ri modelled upon the Civil War eme
fl gency bill.
Ri Owing to the unsettled condition
Sl business the returns from this WI
n reaching revenue bill were disa
L pointing and for the fiscal year
u 1928 but s37,64O,OOO was realiz