Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1927-04-15
Prosperity Located.

The prosperity about which the Coolidge
administration has boasted so much has
been located 1t is in the pockets of
twenty-nine one-hundredths Of one per cent
OF the people of the country. as shown by
the Treasury Departments analysis Of in
come tax returns for the taxable year
1925.
The Treasury Departments analysis
shows that twenty-nine one-hundredths Of
one per cent of the people in the United
States paid IS per cent of the income
taxes for 1925. 1t also showed that there
were 2O7 millionaires in this country in
1925. compared with only rs in 1924. 1t
showed also that one-half Of the taxes
were paid by persons with incomes in
excess of $4,000. In other words, l0. 900
persons paid as much in taxes as did the
2,337,O other individuals who made
income tax returns.
The analysis also showed that so per
cent of the population paid no income tax
whatever, The distressing thing is not
the large amount Of taxes paid by the mil
lionaire class, but rather that under pre-
vailing economic conditions and policies,
81 per cent Of the more than lis, 900 900
people in the country were not able to
earn enough money to make 1t necessary
ior them to pay even five cents in income
taxes. While few millionaires were en-
joying incomes sufficient to require them
to pay IS per cent Of all the income taxes,
62 per cent of the people were earning so
little they were not even required to make
out a tax return.
The other side Of the picture is dis
closed by the latest figures on business
conditions as reported by Dun's Review.
For the first three months of 1927, there
were 6.643 commercial failures in the
country. as compared with 6,08l during
the same three months of 1925. The
liabilities involved in failures the first
quarter Of 1927 amounted TO $l56, 1914
an increase OF approximately fifty million
dollars over the amount involved In fail
ures for the first quarter of 1926 This is
greater number Of failures than during
one whole year under Woodrow Wilson
and almost as great number as during
any year under Wilson.
Thus. while the special favor" policies
OF the Coolidge administration made il
possible for about one fourth of one Der
cent of all the people to earn incomes re-
quiring them 10 pay IS per cent of the
taxes, and enabled the Steel Corporation
to earn dividends Of more than $l34,0OO,-
OOO, 02 per cent Of the people of the
country failed to earn enough to be re-
quired to pay any tax. and more than
$500 Of the business concerns Of the
country were going into bankruptcy within
the short period Of three months The
bankruptcy record Of the first three months
OF this year has been exceeded by only
two similar periods in the country's history
both in years Of general depression.
The Treasury Department analysis also
shows that large part of the increased
income Of those who did enjoy prosperity -
came from the sale of property. This was
from the sale Of real estate and Of securi.
ties on the stock exchanges. The real
estate profits were largely from land
bUoms, almost wholly from city property
Certainly these profits were not enjoyed
by owners Of farm property. in the value
OF which there has been a shrinkage Of
twenty million dollars since 1921. Thus
the Coolidge prosperity" has been def.
nitely located in the pockets of the 10 ,OOC
ultra-rich income taxpayers. including rea
estate and stock spectators.