The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-15

tained.
inheritances and increase Of business
and privileges licenses. and a con-
sumption tax on gasoline, tobacco, soft
drinks. etc.
Income Tax
Every argument against the policy
! OF tax on incomes has been decided
by tho striking success with which
the Federal Government has admin
istcrcd its income tax laws. The
principle Of the income tax is not
only most satisfactory in yielding
revenue, but is ideal, in that it is col
lected directly from the person whom
1t is intended to tax; the yield is GER
eain, and the principle is based on
taSpayinS ability. The willingness
and abiii'" of the Feder,I Government
to supply the states with data as to
! personal incomes would facilitate the
administration Of an income tax law
and remove most Of the adnIinis-.
trative difficulties. For the purpose
of arriving at working basis and in
order to have n definite proposition
on which to proceed, the folio wing is
suggested:
/. That the income Of persons of
corporations De taxed separately.
2. That the income returns as used
b. the United states Government with
certain notifications which will sim
plify the manner Of making returns
be employed as the basis for the state
3. That the following exemptions
be allowed, to wit: 100000 for q sim
gle person, 100000 for a married
| person or for the head Of a. family.
and 5000 additional for each de-
pendent.
a. The adoption Of n graduated tax
on personal incomes. as follows:
(a) On net income over the amount
of exemption up to 3,OOOOO-one-
half of one per cent.
CD On excess OF taxable net in
come over 100000 and UP to $1,000.
OO-one per cent.
Co On excess of taxable net income
over s5,Ooo.oO and up to $1O.O00.00-
two per cent.
(d) On excess Of taxable net income
over 100000 and up to $4,000. 90
| three per cent.
(e) On excess Of taxable net income
| over $50.00O.O0-four per cent.
8. That a moderate tax of three
per cent. be imposed on such proper
ton Of the entire net income OF both
foreign and domestic corporations as
corresponds to the amount Of their
business transacted within the State
Of South Carolina. (Thus information
can be readily obtained from the Fed
eral Goverrment.)
6. That income Of non-reSidents
from sources within the State be taxed
at the same rate as the income OF
residents
Z. That dividends from corpora
tons, whether paid in cash or stock
be included in taxable income.
s. That taxes paid either to the
United States or the State be allowed
as a deduction.
O. That the state Tax Commissio;.
be required TO administer the law.
10. That penalties be provided for
delinquency.
II. That in case Of delinquency
the tax TO be made colloctible by war
rant issued by the Comptroller Gen
eral 10 the proper office.
For the fiscal year ending June 30
1920, the Federal Government collect
ID from the State Of South Carolina
income and excess profit taxes in IN
amount exceeding twenty-fiv million
dollars. This proves to my mind that
we are not SO impoverished that Suf-
ficicrt funds cannot be raised TO de-
fray the expenses Of our own govern
mental activities. II is true that with
the conditions existing now, a much
smallcd sum will be realized.
Inheritance Tax.
The fact that Alabama. Florida
Mississippi. Now Mexico. and South
Carolina are the only States i'm the
Union which do not tax inheritanceS
'ndicatc' that this form of taxation is
approved not only by scientific opin-
on but 10y popular sentiment as Well
The validity Of such a tax cannot be
questioned, and ofsall taxes the one
on inhertnaces is the least burden
some to the taxpayer. There is no