Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-07-01
BV Frederic J. HaSkin
WASHINGTON, D. c., June 24.-'In
wv Taxpayer, meet Mr.. Joseph S. Nc


Coy; Mr. Mccoy, meet your vlctim!'
1t might not have been in good taste to
make such introduction a few months
back when millions Of men and women
throughout the country were struggling with
their income tax returns. But now that the
worst is over 1t is in order to present the
power behind the throne of taxation. This
power is just plain Joe Mccoy, middle-aged
and pleasant. He is government actuary.
Figures are McCoy's speciality. He works
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 1918.
While the constitution Of the United States
provides that call bills for raising revenue
shall originate in the house of representa-
tives," the present revenue law, which, it is
estimated, will raise about $4,000, 900, 900
this year. had it's origin-Or at least the form
and detail of it did--in the ingenious mind
of Mr.. Mccoy.
He also figured out the income tax rates
and did it in 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 this tax he
gathered statistics on the most trifing ex-
penditures 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 collect
ed from the ticket windows. The luxury tax
of the current revenue bill is one of the most
complete and comprehensive of it's kind ever
enacted nothing escaped that should or
could be taxed.
Back in 1913, 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. At that
time the idea was new in this country. 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 of fact and precedent to work
upon. He made study of the various forms
of taxation in Europe. He found that the
English system could not be applied here
satisfactorily, He took up the German
method of taxation, and he liked it so we'll
that our present tax system is largely based
upon the German system.
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 indications are
that his estimate will be about right.
But there is hope ahead for the income tax
payer. 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, 100000, according to Mr.. Mccoy.
The present rate of tax individual in
comes is six per cent on the first $4,000 in ex-
cess of the exemptions, and twelve per cent
on all above that figure Next year, under
the terms of the war revenue act, the rates
will be four and eight per cent.
There will also be reduction of the tax
on incomes of corporations. The present rate
is twelve per cent on the net incomes of cor
porations, while next year it will be ten per
cent. The. war profit tax will be eliminated