The midland journal. (Rising Sun, Md.) 1885-1947, 1929-03-08

years congress has depended on Mr..
Mccoy to furnish the ways and means
and the finance committees information
on which to frame tariff and tax meas
nres His opinion is considered the last
word on federal taxes.
Mr.. Mccoy compares the calendar
year Of 1924 with that Of 1927.
'The total taxable net income for
1924 was $iS.122.963.S21 returned by 4,090.-
034 individuals, while for 1927 it was
$1S0S2, 6107S7, returned by only 2,45s.S59
individuals" said Mr.. Mccoy. THAT
is, practically the same net income as
was returned in 1927 from go per cent as
many individuals as returned similar in
come in 1924. The net income returned
by those with incomes in excess OF
$4,000. however. Increased from $685.
59S,6S5 in 1924 to s10,1 SIT .127 in 1927. The
net income alone did not increase. but
the total net tax returned increased
from $3.50. 134.1S5 for 1924 to $S26, 245.4T for
1927"
Commenting on. the showing made.
Mr.. Mccoy said: 1.-THE strange almost
unbelievable fact is revealed by these
sta tistics that. In spite OF the reduce
y ton: of the tax rates by fully 40 per
cent. out OF the total number Of re-
turns aggregating 7.29S4Sl for 1924,
4.122,242 individuals in 1921 returned net.
taxes OF SIS, f11.3l2 in excess of that re-
turned for 1924. The average tax re-
turned for 1924 was $95.79 and for 1s27.s
$200.45-an increase Of average tax or
1925 per cent and of gross tax OF
1919 per cent, as compared with re-
duction in the number returning taxable
net income of 1919 per cent and a reduce
tion in the average tax rate OF about
40 per cent.
'The reason for this anomaly is clear
f.. @t.n ,nrto ip0r In mi
and income of the larger. together with
the elimination of so many OF the
smaller. taxpayers"
Mr.. Mccoy asserted that the collec-
{ lions show that Secretary Mellon was
right when he told congress that q ''re-
duction. within reason, In income tax
rates results in greater tax yield"
"Another thing shown" Mr.. Mccoy
said. lis the displacement Of individual
by corporate business. The 1927 prelim-
mary returns show that the income
from individual business was $3,528, 702 900.
while the total gross income returned
by corporations was $127. 106, 521 ,54S. The
total net income returned by taxable
individuals for 1927 was SIS, 0S2. 610.7S7. as
compared with $S,06S, 200. 905 taxable net
income returned by corporations.
'.The entire income returned by I'm
dividuals from wages and salaries was
S10,0 ,S66.0S6 as compared with only
So, SIS, 060 as the returns for individual
business This would seem to indicate
that immense sums must be paid to
taxpayers as wages and salaries by
corporations.
1.-THE marked effect of the new income
tax laws upon the wage earners is re-
Elected in the returns Of incomes from
wages and salaries for 1924 as compared
with similar returns for 1927. In spite
of the great increase in incomes, and in
| creased prosperity these returns for 1924
totaled over $780, 1000 more than did
| similar returns for 1927. This Is account
| ed for by the personal exemption In
| crease Of so per cent for single persons
and of 20 per cent for married persons
| and heads of families. which reduced the
| number of returns over 100000 individ-
| uals from 1924 to 1927"
| Mr.. Mccoy based his study on the
'.prelminary statistics of income" for
| the calendar year 1927.
| "The total number of individuals maxi
| ing returns for 1924 was 7,29S. 4S1, while
| for 1927 only 4.122.242 made similar re-
| turns, a reduction of over 4S per cent. J"
! he pointed out. "This was caused by
| the increased personal exemptions pro-
| vided by the revenue act Of 1926.
''The number returning net income in
| excess OF $4,000. however. is another
| story. For 1924 there were 256,500 of such
| 1927, an Increase OF over "a per cent.
| The number returning net incomes of
over $4,000 for 1924 was 5,69i, and for
| 1927, 1907. an increase Of nearly IS per
\ cent. The number returning incomes In
excess OF 100000 for 1924 was IA. and
for 1927, 2SS. an increase Of almost 2Ss
per cent"