The New York herald., 1921-12-04

ticle itself analyzing these figures.
BY RALPH F. COUCH.
Special Correspondence to THE NEW YORK
HERALD.
Copyright, 1921, By THE New YORK HERALD.
New York Herald Bureau.
Washington. d. c., Dec 3.
\ TEARLY 100000 men and women
N have boosted their earnings and
annual incomes within the limits
of the requirements of the Federal income
tax since 1917. it is shown in official studies
made by the Income Tax Unit Of the Inter.
nal Revenue Bureau.
More than 100000 persons now are
paying the Federal tax on incomes ranging
from $1,000 to $4,000 a year. This group
of taxpayers has increased it's numbers
54 per cent. since 1917.
During the same period a subtraction Of
73 per cent. has occurred in that group of
taxpayers reporting incomes of $1,000,000
a year and upward. Correspondingly
large reductions have occurred in the num-
bers of individuals paying taxes on in
comes ranging between $100, 900 and 81 ,000,-
600 a year.
Not more than 1000 men and women
will report incomes large enough to re-
quire payment of the maximum, so per
cent surtax on receipts Of 100000 and
more year under the new tax law, officials
estimate. In former years more than
5000 persons always have come within
the requirements of the maximum surtax.
Something very like what is often called
a redistribution of wealth" is taking
place in the United States. Millions Of
persons of moderate means are becoming
richer. The so-called rich are becoming
poorer, the official studies seem to show.
How the Rich Are Poorer,
And Middle Class Richer
The official studies of the Income Tax
Unit are regarded as the best and most
accurate data obtainable throwing light on
the earnings of the residents of the United
States These studies indicate that
throughout the entire United States the
average family pocketbook now contains
more dollars than ever before despite the
economic depression and the so-called hard
times.
Salary scales in every section are higher
than since before the great war. Wage
scales are descending, 1t Is true, but the
lower registers of the income tax reports
indicate that workers still are earning
more than in 1913 and 1914. Living costs,
roughly so per cent. lower than year ago,
spell for the worker greater purchasing
power with his dollar.
And the financial situation is becoming
very materially better for the much dis
cussed white collar worker" who, during
the war, suffered from a stationary In
come. while the manual laborer went far
ahead of him in earnings. The financial
success OF the school teacher, the college
professor. the Office clerk, the bookkeeper
and persons of kindred professions is at
hand.
The great mass of residents of the
United States now is finding itself with far
more to spend for education and recrea-
tion than ever before, the official reports
indicate. The few belonging to the large
income groups are having what may be
described as rough shedding financially X
the reports are read comparatively bet
tween the years of the war period and
the present
Being a millionaire now is a most diff
cut Job War fortunes are vanishing. But
the millions of persons of moderate means
are finding their pocketbooks easier to
fill. For them 1t is becoming easier to
live. The change that is taking place
is raising the standard Of welfare of the
entire nation.
About $500 900 Pay Taxes,
Only 100000 in 1917
Approximately 5,5o0,00O women and men
now are paying Federal taxes on incomes
received in 1920. In 1920 the number OF
taxpayers was 100000, and in 1918 the
total was 44OO,oOO. The year 1917 found
only 100000 on the tax rolls. The total
number of taxpayers thus is shown to be
increasing year by year.
Practically all of the increase is taking
place in the lower rolls of taxpayers, that
is to say in the groups of persons paying
on incomes of under $4,000 year. This