Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-26
TWENTY BILLIONS FOR
THE CONGRESS TO TAX
Unless II Makes an Equitable Adjust.
ment Of the Burden, II VIII Have
to Reckon with the Voters

A S preliminary to revising the tax laws
"A Congress should acquaint itself with the
startling facts about the fuctuation of tax
able incomes since 1910.
The Commissioner of Internal Revenue
has disclosed them up to and including 1919.
He has enough data about the incomes Of
1920 to satisfy the needs Of the congress
sional committees.
comparison OF figures of 1916 with
those of 1919 will be illuminating. The
total Of all the incomes above $3000-those
which are taxed-amounted in 1916 to less
than $1,000, ,000,0 900. There were 206 men
with incomes in excess of 81 200, 900 and
their incomes aggregate between $3.50, ,000,
600 and $500, 900, 900.
In 1919 the total taxable incomes
amounted to little less than so, ,0O0, ,000,-
600, or TO almost three times the amount in
1915. There were only sixty-f men who
reported an income Of 81 900, 900 or more
and their aggregate incomes amounted to
S152 900, 900.
There are two possible explanations for
this decrease in the total amount of the
incomes above 81 900 600 One is that the
heavy taxes which have absorbed two thirds
of the income discouraged big business to
such an extent that IT was no longer possible
for II to earn large profits Another is that
Dig DuSlHeSS men nave lOunu II way or con
Ccaling their profits. either by investing in
non taxable securities or by tricks of book
keeping.
But it is not the incomes above ST 900 900
alone which have decreased in number. In
1916 there were $40 men with incomes be-
tween $500 200 and 81 900 900. In 1910
there were 1S9. In 1915 there were ia
with incomes between $500. 900 and $500
900. In 1919 there were 425. The num-
Der Of incomes between S15O.0 600 and $780,
900 in 1916 was 2437 In 1919 it was
iS64
But the number of incomes between $50
OO0 and 100000 increased from .+52 in
1915 to 1890 in 1919; and in the same
period the incomes between S25 900 and
SOC, 900 increased from %, 734 to 7.477,
and the incomes between $4,000 and $25-
900 increased from so, 500 to 1862. 49,. And
it goes with the smaller incomes. those
between $1,000 and 100000 growing from
150,500 in 1916 to 43S.S 81 in 1919.
The very large incomes have for some
reason been destroyed and the moderate in
comes have been multiplied. But this was
in 1919 when the reaction from the war
prosperity had not begun TO set in. The
1920 figures may show Il very different state
of affairs But it is morally certain that
they will not show That the number of m n
1919. What they will show about the rest
rannot be known until the Commissioner of
Internal Revenue gives out the figures. But
whatever the facts arc they should be known
before Congress attempts to revise the in e
tcrnal tax laws
The primary purpose of the internal taxes
is to raise revenue and not to destroy bust
ness. 1t should be so levied as to encourage
enterprise and to conserve the working
capital of the Nation.
The economic folly of selling in the form
of tax two thirds of the very large in @
comes is admitted by all economists of any
standing. But once such taxes have been
levied there are political difficulties in the
way of tightening them. The dcmagogucs
will at once say that the rich are favored at
the expense Of the men of moderate means.
And where there are nearly half million
men with incomes between $1,000 and SO,
600 and only sixty five with incomes in cx =
cess of 81 900 900 there are few politicians
who would dare advocate relieving the
sixty-f five at the expense Of the half million
II the majority in Congress had to con e
slider only the economic questions involved
its task would be easier. But it must take
into account the political effect Of what it
does. II knows, or it ought TO know, how
ever. that If II does not do something to
tighten the burden of taxation between now
| and November of next year it will have to
adjust itself to working as the minority
purty for the last two years of Mr.. Hard
! ing's Administration.
Perhaps the President will have the cour.
age to point out the course Congress should
| pursue as he did in the matter Of the bonus
legislation.
|