The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-07-01
TOPEKA STATE JOURNAL
INFORM ALTON
BUREAU >
FREDERIC J. HAEKIN, Director.
washtngton. D. c.
THE MAN THAT MAKES THE
TAXES

tim"
1t might not have been in good
taste to make such an introduction
few months back, when millions of
men and women throughout the coun-
try were struggling with their in
come tax returns. But now that the
worst is over it is in order to present
the power behind the throne of taxa
ton. This power is just plain Joe
Mccoy, middle-aged and pleasant.
He is a government actuary.
Figures are McCoy's speciality. He
work with them. talks about them and
dreams of them. He is never so
happy as when he is computing some
big government financial problem
that runs into the billions The
more figures, the better he likes it.
Much of the governments business Is
done in billions these days, when
the annual interest on the national
debt is greater than was the total
expense OF operating the government
in 1913.
While the constitution of the United
States provides that ali bills for rails
ing revenue shall originate in the
revenue law. which, it is estimated,
will raise about $6,000,QOO.0OO this
year, had its Origin-or at least the
form and detail OF it did-in the in
genious mind of Mr.. Mccoy.
He also figured out the income tax
rates and did it in a scientific way.
He admits that he stood out strongly
for placing the heaviest burden upon
the shoulders of the rich, and letting
the poor man off as easily as possible.
The unloved luxury tax is one of his
pets In laying the foundation for
most trifling expenditures of our
everyday life. He had to estimate
how many times we went to the
movies and to the theater in order
to figure the amount of revenue that
could be collected from the ticket
windows. The luxury tax of the cur
rent revenue bill is one of the most
complete and comprehensive Of its
kind ever enacted; nothing escaped
that should or could be taxed.
Back in 1918, when an income tax
was first proposed, there was almost
nothing upon which to base estimates
of the amount of money the levies
might bring in. North Carolina was
the only state in the Union with an
income tax, and it derived only about
$4,000 annually from that source.
Mr.. Mccoy was not discouraged by
reason of this lack If fact and prece-
| dent to work upon. He made a study
of the various forms of taxation in
Europe. He found that the English
|
| factorily. He took up the German
method of taxation, and he liked it so
well that our present tax system is
| largely based upon the German sys-
| tenn.
The first year that the income tax
law was in effect, the yield on the
/ corporation income tax was within a
! few thousand dollars of the estimate
| fixed by Mr.. Mccoy. He estimates
that about six billion dollars will be
| raised this year, and the present indi-
cations are that his estimate will be
\ about right.
I But there is hope ahead for the in
come taxpayer. In 1920 the strain
upon your purse will not be so great
as it was during the present year. The
strain will be less by $4,000, 900, 900,
according 20 Mr.. Mccoy.
The present rate of tax on individual
/ incomes is per cent on the first
$4,000 in excess of the exemptions
and IL per cent on all above that
figure. Next year. under the terms
| of the war revenue act, the rates will
| be and per cent.
There will also be a reduction OF
the tax on incomes of corporations
The present rate is 2 per cent on the
net incomes of corporations, while
next year it will be 10 per cent. The
| war profit tax will be eliminated en-
tirely. The excess profit tax will be
cut from 80 and IS per cent to 20 and
40 per cent.
This year it is expected that nearly
billion dollars will be collected In
taxes on wines. beer. liquor and
spirits. This source of revenue is los
when prohibition takes effect next
year. Less than ten million dollar:
of this loss will be made up by a tai
on soft drinks.
The fiscal year of 1888 is thu
most expensive in the history of the
country The total disbursements fol
the year are close to $4,000. 900. 900
The disbursements of S1,917. 900, 00O
in 1865. the year following the Civil
war. were trivial in comparison. II
1899. Immediately after the Spanish
American war, less than a billion dol
lars was expended in running the gov
eminent.
At the beginning of the Civil war
that is July l, 1861, our national deb
was S90.5S1 900. At the end of tina
war we owed something like $2.6S0.
100000. After the Spanish AmericaI
war our obligations were $1,S17.573.
900, and this sum had increased t
about $3,OO0,O 900 just before tn
outbreak OF the great worlds war
Today our national debt is about $25.
J 00O,0O0,0O0, which money was raiset
by liberty bonds.
The United States is the least bur
-Ndened with debt. when all things ar
considered. of all the countries of tn
world. The latest figures availabl
show that France in 1917. with an an
nual revenue of 1851. 000,0 600 was ex
pending annually Ss.15o, 100000. I
is figured that now her total debt i
over $40. 900, 100000.
In 1915. Germany's annual receipt
= were $S1O.00O,00o. while she wa
spending S3,1s1. 100000. Her debt i
said TO be more than s2o.226, 0oo. 90
: without the additional burden tina
will be imposed upon her by the term
of the peace treaty. Beside the ma
tional debt. German states have thei
1 private debts, just the same as tn
/ various states IF our Union have thei
, own obligations.
Italy in 1917 was raising abou
1000. 900. 900 annually IN taxes. Will
: the annual expenditure was NOR
1 than three times that muth