The Ely miner. [volume] (Ely, Minn.) 1895-1986, 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
ures. His opinion is considered the last
word on federal taxes.
Mr.. Mccoy compares the calendar
year of 1924 with that of 1927.
1.-THE total taxable net income. for
1924 was $lS.122.9 63.S21, returned by 1885,
034 individuals, while for 1927 1t was
s1S,0S2, 610,7S7, returned by only 2.45s,S5s
individuals" said Mr.. Mccoy. THAT
is, practically the same net income as
was returned in 1927 from 60 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 Sc 673.-
59S.635 in 1924 to s10,105. ST. 127 in 1927. The
net income alone did not increase, but
the total net tax returned increased
from $685. l34. 1855 for 1924 to 1896, .497 for
1927"
Commenting on the showing made,
Mr.. Mccoy said: 1.-THE strange, almost
unbelievable fact is revealed by these
statistics that, in spite of the reduc-
ton of the tax rates by fully 40 per
cent, out of the total number of re-
turns aggregating 7.29S,4S1 for 1924,
4122.242 individuals in 1927 returned net
taxes of $751;, III, 312 in excess of that re-
turned for 1924. The average tax re-
turned for 1924 was $3.50 and for 1927,
500. 45-an increase of average tax of
1926 per cent and of gross tax of
1873 per cent, as compared with re-
duction in the number returning taxable
net income of 1913 per cent and a reduc-
tion in the average tax rate of about
40 per cent.
Co. I1s- T. oil,
ly the enormous increase In the number
and income of the larger. together with
the elimination of so many of the
smaller, taxpayers"
Mr.. Mccoy asserted that the collec-
tons show that Secretary Mellon was
right when he told congress that ''re-
duction, within reason, in income tax
rates results in a 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 s., 528. 20, $50,
while the total gross income returned
by corporations was $127, LOG. 521 ,54S. The
total net income returned by taxable
individuals for 1927 was s1S,0S2. SIC, 7S7. as
compared with $S,06S. 2OO,9O5 taxable net
income returned by corporations.
1.-The entire income returned by in.
dividuals from wages and salaries was
$1,000, $685. S6. as compared with only
3,52S, 702, 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.
THE marked effect of the new income
tax laws upon the wage earners is re-
f1ected in the returns of incomes from
with similar returns for 1927. In spite
of the great increase In incomes, and in
creased prosperity, these returns for 1924
totaled over s3.700.0 900 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 40 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
preliminary statistics of income for
the calendar year 1927.
1.-The total number of individuals max
ing returns for 1924 was 7,29S,4S1, while
turns. a reduction of over 43 per cent
he pointed out. This was caused by
the increased personal exemptions Lro.
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 256.5O0 OF such
returns, as compared with 343,S56 fol-
1927 an increase of over 81 per cent
The number returning net incomes oil
over 100000 tor 1924 was 1854, and fol
1927, 1867, an increase of nearly 95 pei
cent. The number returning incomes ir
excess of s1,0O0.0O0 for 1924 was "a, and
for 1927, 2SS. an increase of almost 2S
per cent"