The Fayette falcon. (Somerville, Tenn.) 190?-current, 1920-03-19
THE FEDEPAL INCOME TAX

sharply aroused the past month owe
the operation of the Federal incom
tax law and we hear many and sever,
criticisms of the law and not unjus
criticisms. AS long as the world wa
was going on the Government
taking taxes in any form was &C
quiesced in without word from thiI
section of COUNT = The normal tax
the sur tax, the excess profits tax anC
all were quite willingly paid. but with
the return Of peace times the payment
of the large part of even a reasonable
profit made by men of moderate means
and moderate income is quite unpopular.
For an example: Government Of
ficials some time ago in computing the
cost of living for the average family.
made the figures under past year con-
ditions nearly $1,000 as the actual nee
essary expenses of the average family
having every thing to buy. Then in
come tax law comes along and puts a
profit tax on all incomes above $1,000
for a single man or $4,000 for married
man, putting a taA on thrift of its cit
izens. The trouble seems to be In the
figures at which the tax should begin.
Until the war came on all incomes of
less than $4,000 per were exempt from
income taxes and now that peace has
returned the figures should be again
raised to that sum.
And-in the case of corporations the
income tax as at present collected is
nothing short of confscation. A GER
tain bank last year earned net SIG, 900.
in round numbers. 1t had earned the
year preceding the war $10,0 Now
last year on the first $4,000 it earned
it paid the normal tax of IL per cent.
On the other Sc, 900 it earned it was
required to pay 80 per cent, nothing
short of holdup and there is no sense
in such taxes. The said bank has dou-
bled its business in three years and yet
il must make no more than it did five
yeare ago. and if it does the Govern
ment takes 80 per cent of the increased
earnings and leaves the bank just one
fifth of said increased earnings for its
part of the increase and growth in
its business.
A farmer owns farm worth SIS an
acre in 1918. He sells to neighbor
at $50 an acre and buys another farm
ia the same neighborhood at $50 an
acre. He must pay income tax on the
$45 per acre on land sold, if his entire
years profits amount to more than
he had before and all his money is in
land. We know of farmer under ex.
actly these circumstances WHO had to
borrow money to meet just such tax
last week.
Another unfair feature of the law is
that no allowance is made for the sup
port of children over Is years of age,
tho dependent upon the parent. The
average child passes thru his most ex-
pensive period after he is Is. He COM
pleted the home high school about that
time and the next two or three years
are spent in boarding school if any
years are spent in such school, and it
is then that he cost the parent the
most, and yet under the law no allow
ance is made for such child. And yet
to make the most useful citizen pos
sible the parent must spend this money
70 educate the child fer suitsble citi-
izenship.
And if father raises half dozen
daughters who do not see fit to marry
before they are Is he has their sup
port thru their most expensive period,
that of young.ladyhood, and no allow.
anee made for such support. These
are absolute wrongs, and Legislators
should be made to know that people
of this section look upon them as
wrong. And when congressman know
OF such opinions Of a law repeal will
come sooner or later, or such changes
ia the law as viii make its working fair
ard just. Write your congressman and
senators if you feel this way about it.