Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-03-15
TEMPORARY CHECK
ON|NVEST|NG SEEN
Only Short-Lived Halt to Be
Caused by Income Tax
Payments.
BY j. {. ROYLE.
SpeciaI Dispatch to The Star.

| Special Dispatch to The Star.
| NEW YORK, March 1o.-F1llnS
| of income tax returns calling Tor pay
| ment to the Federal Government OF
approximately S400,000,uJ0 ana pay
ment of a good part OF that sum TO-
| day served to halt the flow oil invest
4lcntS only temporarily. Inc money
| truwn from payments today Will
hortly find It's way back through the
veins of commerce. while the amount
citizens were prepared to pay in event
the cuts in the TAX schedule had not
been mate WA most OF it find its
way into ui!sincSS and industrial in
Nestment1.
It is conservatively estimated that
the present tax schedules have saved
he III 900 .0UO-odd Inhabitants OF this
country Approximately $2U0,o00,0 900.
With this sum available all indica-
tons point to absorption OF at least
So $50 100000 in American securities
before the end of 1926.
Plenty of Opportunities.
There is no doubt that plenty of in
vestment opportunities viii be pro
tided. Ihefc are many indications
which show that the carrying on vi
businesses by individuals and partners
-, rapidly passing Out of the picture.
1Olltct lis Ntlltfl nave Dttll uilucl Tie
domination of single families or groups
Of close associates are being bought
out ana their STOCKS and bonds offered
To TIE public. Some economists claim
10 toreSee the time when no business
OF any size will be carried ON by an
individual, declaring that the danger
rom the sudden elimination of the
guiding head Is too great to be COW
cred even by liberal life insurance in
favor of the concern.
The State, county, municipal and
other local government agencies sure
~ will have Il huge volume of securi-
,.eo TO oner investors. The interest
cnareeS ON bonds of these units issued
since the beginning Of the war now
amounts To s322 900. 600 annually.
TINS. is more than the annual amount
borrowed in the 10 years before the
war. and these interest payments are
beng turned right back INTO invest.
ments in most cases. The State, Coun-
IS, municipal and local government
bonds issued this year probably will
total 81 500 Uu0.U 900.
Highway construction is the item
on winch the largest part of this sum
Will be spent by the States, with the
upkeep Or charitable and penal insti
tutions next. municipalities VIII spend
their bonds Tor education.
Garry Heaviest Burden.
New York pays the highest per
capita Federal tax, amounting 10
about double the average lor the en-
tire country, but the people of Florida
Michigan, Delaware, North and South
Dakota ana Utah carry a heavier total
tax burden in proportion to income.
The people of Wyoming enjoy The
lShtest tax burden in the country.
The lowest Federal per capita taxes
are paid by the agricultural States
but the total tax burden of those
states remains very high in proper
ton to income.
The Tightening of the SurtaX rates
in income tax regulations this year is
not expected to lower revenue 10 the
Federal Government, according TO
some bankers here. The fina nciers say
that the volume of revenue will he
kept up, since the larger incomes will
no longer he invested to such an eX.
tent in taXeXempt securities.
1t Is interesting to note in connec-
ton with 1926 tax payne nts that the
$500. But the American taxpayers
are in much better situation than
those of some foreign countries In
England for married couple without
children an income of 5000 calls for
tax payment of SID ~ compared
with Sl6SS in this country