The Washington herald., 1918-07-21
GET INCOMES /,
OF WEALTHY,
BORAHSPLAN
Senator to Avoid "Flching
from Poor Mans Table
for War Funds.
BY GIBSON GARDNER.
staff Correspondent.

Senator Borah says he intends to
help Secretary McAdoo and President
Wilson get their eight billion dollars
revenue bill from the excess profits
and the unearned incomes. This was
his purpose In asking reports on this
subject from the Federal Trade Com
mission and Treasury Department.
ct have had so far only preliminary
reports from both sources" said the
Senator. They are. however, very
helpful. particularly the report made
by the Federal Trade Commission url-
der the direction of W. B. Colver.
There is no reason for bearing heavily
on consumption when revenue can be
raised without interfering with pro-
iuction or taxing unnecessarily the
consuming public. why fiIch from the
breakfast table Of the man Of mod
crate means or from a poor man when
the war profiteers have so much more
then they can use? I am in full ac-
cord with the recommendations of the
President and Secretary McAdoo In
this matter Of raising revenue and my
resolution was introduced In pursuit
Of the statement made by the Presi-
dent in his address to Congress on
MAY q, when he said that Information
in regard to profiteering was indispu-
table and available. The departments
are now making It available and the
next step will be the drafting OF a
bill which will reach that income.
Gross Incomes Large.
A report Just made by the COM
missioner of internal revenue COW
ering 1917 shows that during 1915
the gross income of corporations
reporting a net return was over
S32, SOC, 900, 900 and their net income
was approximately sS.S0O, 100000. In
addition to these returns from the
corporation, the incomes of the 49,
O36 persons making income tax re-
turns was approximately $S.356.0OO.-
900. So a total income of the cor
porations and individuals makes a
total of over $1,000. 100000.
To the above, in estimating the
country's taxable income. must be
added the income from personal
service and business not INCLUDED in
the income paying schedule which
in 1916 came to some $4.490, 900, 900,
while from property there was an
income of s3,S6O. .000,0 900. 1t is in
teresting to find that persons en-
joying an income of $4,000 or less
derived that income in largest part
from their personal service, In
cluding their business, whereas 50
per cent of those persons receiving
s40,0 900 a year and over was derived
from property. that is, from in
yestments." 1t is upon the latter
that Secretary McAdoo insists the
rate of taxation should be increased.
These are the "unearned" or lazy
incomes.
Some Are Very Rich.
II Is estimated from the figures OF
the internal revenue commissioner
thai one-tenth of / per cent of the
American people received last year
s.. 800. 100000 of unearned incomes.
From the same sources it Is found
that less than one-quarter of per
cent of the farmers of the country en-
joyed a taxable income of over 5000.
1t is estimated by experts IN the
Treasury Department that the total
national income for 1917 was approx
mately SO, 900, 600, 900 and II Is figured
that for 1913 II will be in the neighbor-
hood of so. 900, O0O. 900. If the new reve-
nue. law takes a tenth of this, the
returns will go far toward meeting
the war expenses including the heavy
item of interest on liberty bonds.
Secretary McAdoo is understood to
be more anxious for legislation which
will reach war profits than for legis-
lation which would place a tax on
clothing, gasoline and the pleasures
of the country, including moving pic
tures,y soft drinks and the like. '