The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-07-12
FEDERAL INCOME
TAX IN INDIANA
GAINS 100000
Offsets Administration Claim
New Law Contains Heavy
Levy Slash.
By Roscoe B. Fleming
Times Staff Correspondent

WASf1lNGIQN, July lz.-DeSplte
the Administration claim that the
tax law passed by Congress last win
ter contains heavy cuts in taxes, In,
diana paid $1,O00OO0 more in Fed
ed last June than during the pfeced-
ing year.
The new tax law was in force for
the first two income tax payments
of 1926. Despite this; the State paid
$39.473,0 900 to the Federal Govern
ment in 1926, or approximately s1s
for each Indiana resident, against
$38,446,000 for the fiscal year 1925.
All Income Tax
The increase is all represented in
income tax Hoosiers paid $24,-
922 900 on their incomes during the
1925 fiscal year, against $23,702, 900
the preceding year, or an added
burden of $1,22O,0OO
Miscellaneous taxes dropped from
S14,743,000 in 1925 to $14,550, 900 for
1926.
Since individuals with incomes
less than $500 a year were entirely
exempted from income taxes by the
new law, and since Indianas/ ex-
tremely wealthy men had their taxes
virtually slashed in half, it is clear
that either the State is enjoying ex-
treme prosperity, or that the mid
die class" taxpayer, with an income
from $4,000 to one of $4,000, is
carrying more Of the Federal taxa
ton burden than ever before.
Similar in Nation
The State situation was reflected
for the Nation as a whole. Total
taxes paid in 1926 were $2,S36, 000.-
900. of which S1,972,000 was in in
come tax. The increase in total
taxes was about $4,000, zoo over
last years figure of $2,5S4, 900
and the income tax increased $211,-
100000 over last years figure Of ST.
761 900, 900.
Ten States of the booming South
paid $56,000,000 more in Federal
taxes. thus bearing out Secretary
Hoover's recent description of the
amazing growth and stability of
the South's industrial empire.
New, England barely held its own,
AS did the agricultural States of the
Midwest, the coast States, with the
exception of California, the noun
tain States and the great Eastern in
dustrial States of Pennsylvania and
New Jersey.
The Midwest
The Midwest's industrial kingdom
of Indiana, Ohio, Illinois and Michi-
gan paid .$5S.OO0,0O0 more during
1926 than during 1925; New York
paid SIS, 5000 more and California
$13,000,000 more.
The figures are from the Treasury
Departments preliminary release Of
1925 tax totals, compared with for
mer releases showing the 1925 fig
ures.
Despite the recent ''tax cuts law,
the Nation as whole added $685.
100000 more to the Federal treas
iury in 1926 than in 1925, or 1885,
100000. against s2,5S4.000,000. In
come taxes alone totaled 81 1872, 00o,-
900 in 1925, against $1,761 900, 900 in
1925, a gain of $211, 100000.
Eleven States, including Ohio, Cali
fornia, Oklahoma, Texas, Missouri,
Michigan, North Carolina, Illinois,
Florida, Minnesota and New York,
practically accounted for the total
tax increase between them, with
$4,000 900 more than in 1925. The
rest of the States either gained very
slightly or lost.
Texas Gains
Texas with a gain of $4,000, 900,
Oklahoma with a gain of $4,000, 900,
North Carolina with $4,000. 900
and Florida with $21,000,000 led the
South.
Comparative figures for the two
years on total Federal taxes in GER
tain States follow, the first figure
being for 1925 and the second for
1925.
Alabama, $s,36S ,4Os; against &c.
440,0s6.
CduIOTQld, DlO7sotl ,oUo, dSdlIlSL
$121,777,522.
Figures
Kentucky. s2S,761.22, against $685.
214.32c.
Maryland dncluding District Of
Columbia), $4745S,279, against $45,-
4S9, $40.
New Mexico, $725,5sO, against
$S64.512.
Ohio, $155. 4s4,4S2. against $142,-
497,084
oklahoma, s17,916,1ss, against SILL.
621,795.
Pennsylvania. 1851 1892 500, against
$246,592.155.
Tennessee. $151S1.32S. against
$16,946,671.
Texas. 42,s27s45. against ss4,-
673,542. A