The Dawson news. (Dawson, Ga.) 1889-current, 1920-12-14
PAYERS OF MILLION
DOLLAR TAX DECREASE
NuMBER OF INCOMES SUB
IprT TO LEVY ON THAT +.
AMOUNT FALLS RAPIDLY.
ONLY SIXTY-SEVEN NOW
4. Increase of Smaller Assessments
relieved to Indicate Greater Shift
inc Of Wealth. Equalization of Bur-
1an Rig Problem For Congress.

Relieved to Indicate Greater SHIFT
;ra Of Wealth. Equalization of Bur-
den Big Problem For Congress.
NEW YORK, N. Y.-The surpr 0
49, decrease in the number OF moons
ny. .,,b;eCt to levy of $1,000,000 revealed
- ;ocome tax statistics recently given
or+ bv the treasury department is ia
Zen by students of the nations fnan-
Id statps to disclose a shifting rather
t Zion falling off in wealth, and in
! .t,a;r minds indicates conditions call
;ng for sweeping changes in the gov
ar91r,ent's revenue system as applies
e. tavat;on. The statistics for the cal
e ~ wear 1918 show only 81 incomes
ona;net which tax of $1,000,000 a
ae eor or more was levied, as compared
~ i4I in 1917 and zoo in 1916. The
r ~ 81 in 1918 were levied upon
ot an average rate of 64.65 per cent,
as compared to 1906 per cent IN l9lI,
and oaid into the treasury SS0,o85, Z49
An average of $1,326,645.
The report shows a total amount OF
net income of $15,924, 639,358 yielding
Az total tax of $1,127,721,83 and an
average tax per individual OF SI34.S9,
as against an average OF Sl99,ll Tor
the individual and total yield OF
SOL. ,954 in 1917. The total net IN
come reported in 1917 was $l3,65z,-
3S3.207, so the figures for 1918 show
an increase of II per cent.
Largest Increase in Glasses of
$4,000 to $4,000.
1t is notable that the largest in net
income over the period in question
were in the classes from $4,000 to Sl0,-.
600. the most striking increase OF all
being one of 10 per cent in the $2,OOO-
$1,000 class in which wages and sala-
ries figure as distinctive from dlvi-
dends and profits.
In 1917 there were recorded on the
books of the treasury department some
al persons whose taxable incomes
were in excess of $1,000,000. There
were 315 persons who paid on incomes
exceeding $500,000; $50 incomes in ex-
cess of 100000 were subject to the
levy of the federal government. Two
thousand three hundred and forty-sev-
en- incomes of $l50,000 to 100000;
3,302 citizens possessed incomes sub
iect to taxation which were from
100000 to $150,000; of the $4,000 to
100000 incomes there were 12,349;
sc. 39l persons were calculated to boil
ster the federal need on incomes from
$4,000 to $4,000.
From the foregoing group OF in
comes a great portion OF federal rev.
enue naturally was expected. Reduc-
tionsof those incomes, however, follow
ing the armistice and the secession OF
war profits was an obvious precluslon.
Collection of such low percentage
in 1918 of the amount collected in l9l/
portends grave predictions for the
comparative collections in 1919 and
1920. the reports of which have not yet
been made public by the treasury de-
partment.
Burden Heavy on Some, Light
On Others.
Further, to take stock in trade, re-
view OF the inequality OF taxation as
conceived by the ways and means
committee may serve us better to I'M
derStand the business stagnation ex-
isting in certain sections OF the coun-
Try.
New England, with a population OF
100000, paid to the government last
year $546,843, 646.28; New York, New
Jersey, Pennsylvania, Delaware and
Maryland, with a population OF ~
100000, paid $2,246,876,055.56, and
Ohio Indiana, Illinois, Michigan and
Wisconsin, with a population OF w.
100000, paid $1,264,833, 388.O2.
The total number of those paying IN
come taxes in 1918 showed an increase
OF almost a million. The increase in in
come reported by all income tax pay
ers was $2,272, $50, 1850, and the IN
crease in taxes paid was $436,228,8ol
These figures show anything but loss
OF wealth to the country. AS matter
OF TACT, they indicate a more general
prosperity. The small income taXpay-
ers number 4,404,170, reporting in
comes OF $1,000 or over. In 1917 there
were l,832,132 of such reported III
comes
Various theories are conjectured at
the treasury department and at the
capital as to why the large incomes
apparently decreased so greatly in the
year 1917 to 1918. A favorite eXplana-
ton is that many possessors of wealth
mad anticipated the heavy drain they
would have to bear as result OF the
terrific war expenditures and got I'M
Der the cover of the various liberty
pond issues which were tax Tree.
When a Millionaire Is Not
Millionaire.
60, A millionaire who put his wealth IN
liberty bonds exclusively would not be
a millionaire, according to the tax
commissioners. If he possessed a mil
lion OF them he still would not be m
Guided in the millionaire line. 1t is also
conceivable that by such an investment
IN liberty bonds he would have lost
more in principal than the income
which made him a millionaire. That IS,
ne would have diverted his wealth
nom more remunerative investments.
1t is reasonable to believe that there
was more wealth and more million
ares in 1918 than in 1917, and the de-
crease in the number of the latter IN
i9l8 may be due to many OF them
nsposing of their wealth in exempt
securities so that they are no longer
10 he counted in the millionaire class.