The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-03-16
TREASURY BORROWINGS.

The federal treasury is about 10
issue another big block of treasury
certificates, on which it will pay u
obtain funds to meet current expenses
This plan of meeting the governments
financial requirements has been going
on ever since the close of the war,
without any signs of improvement. 1t
illustrates the utter inadequacy of the
existing federal taxation system, yet
congress has been in session almost
continuously without making any ef-
fort in the direction of change.
The existing system is not only in
adequate. but it is burdensome and
bears unequally on the people.
Back in 1887 Alexander Hamilton
predicted that the collection of direct
taxes by the federal government would
be most difficult. He believed that
the people would not readily disclose
the details of their incomes and pri
vate affairs, or. as he put it. The
genius of the people will ill brook
the inquisitive and peremptory spirit
OF excise laws Hamilton then added
this significant phrase: THE pockets
of the farmers, on the other hand,
will reluctantly yield but scanty sup
plies, in the unwelcome shape of i'm
positions on their houses and lands"
AS a matter of fact. the government
returns for 1917 go far to confirm
Hamilton's estimate of the empty
pocketed or escaping farmer; for only
$S06. 100000, or less than per cent
of the total net income returned for
1917, is represented by personal in
comes from agriculture and animal
husbandry, altho the gross value of
farm products for that year was Of
ficially estimated at the gigantic SUM
of s19,3s1, Ooo,o 900.
Not only in the government at
present dependent chiefly upon a sin
gle source of taxation, but the method
of imposing the taxes bears with
extraordinary weight upon a small
portion of the country. Not less than
$S,472, 900, or approximately "a
per cent. of the total income and
profits-tax receipts in 1918 and 1919
came from five states-Illinois, Mass
achusetts, New York, Ohio, and Penn
sylvania. Analysis of the personal
income tax returns for the calendar
year 1917 shows that in that year IL
per cent of the population of the
United States made returns of taxable
incomes. About 90 per cent of the
total " per cent paid 261e per cent
of the total individual income taxes
while the halance--only 2 per cent
paid 1914 per cent of the taxes. In
other words, three ten-thousandths Of
the population paid almost three
quarters of the income taxes. There
were in that year 1,565.32S taxable
incomes running from $4,000 to
comes reached s7,S24,276,66O; but of
this only $751;, 946,821, or about per
cent on the average, was paid in in
come tax. At the same time there
were 26,190 incomes each of $40, 900
or above, aggregating s2,76S,710.5o2.
Upon this amount, less than one-third
the larger amount, there was paid
in income tax $422.o52.s4s, almost
three times as much as the total paid
by the milllon ana nalf7 incomes.
AS is well known the subsequent re-
vision of the revenue act made the
burden on the higher incomes heavier
for 1918 and 1919.
Inequalities of the system, it is be-
lieved, could be removed and ample
revenue provided by the levying of a
tax on sales. What will the new
congress do?