Evening star., 1935-12-07
TAX FIGURES SHED .
NEW DEAL GLOOM
Revenue Sources made
quate to Meet Mount.
ing Deficits.
BY DAVID LAWRENCE.

The biggest and most important
story in the National Capital is wrap
ped up in some obscure figures given
out in q routine way this year, as in
other yearsthe official data on 1884
income tax returns.
The significance lies not in the fact
that there are fewer persons with an
income of 81 .000, 900 or over than there
were the year before, but in the clear
indication that the man of moderate
means has some taxation coming
which must be more drastic than any
thing he has ever faced.
To the Socialists and the class con-
scious persons who think all the prob
lens of today would be solved if per-
sons with a good-sized income had
that income taken away from them
the Treasury figures will be disap-
pointing. Here is what they show.
/. That if all the persons having a
net income of S25,000 a year were to
be deprived of 100 per cent of said in
come, the total amount obtained by
the Treasury would be only $1,526,-
724, 900, which isn't enough to pay hall
the deficit of the present fiscal year.
Tax Yield Under $4,000.
2. That persons with q net income
below S25,000 a year had total ol
$40, ,e29, ,538, 900, and out Of this sun
only S158, ,sz8, 900 went for taxes. a.
compared with $347, ,ooo, 900 in take:
paid by the persons with net income:
above $4,000 a year.
3. That persons with net incomes
under $1,000 a year had a total net
income of $7,485, ,OO0, 900 and paid only
S32 100000 in taxes.
4. That persons above $1,000 yeal
in net income had a total Of about
81, ,000, 900 900, so that, if 100 per cent
of that net income were taken or con.
fiscated by the Government, the fed
eral treasury might possibly meet it
current deficits.
To take 100 per cent of anybody''
net income Is, of course, utterly out
of the question, for nobody would want
to work for the benefit Of q 100 pei
cent income tax, so the measure woulc
defeat itself. AS pointing, however
to the absurdity of those demagogue,
who go around the country misleading
the people by telling them persons
with incomes over 5000 or the mil
lionaires can pay all the expenses o.
boondoggling, there is no better proc
of imrracticality than In the Treas
ury figures as classified.
Tax Source Question.
Where will the Federal Government
get the tax money to pay for it
deficits or to retire the enormous deb
that is being piled up? Clearly th'
answer is not to be found In tht
group above 5000 q year or in tn,
group above $25, 900 q year net in
come either. The oriiy large sourc'
Of taxation is to be found in the in
comes below $1,000 year, and wher
the politicians touch that sensitive
nerve they will begin to feel the ef'
fects Of a house cleaning that win q
from coast to coast.
Today the Federal Government i
spending and spending without re-
gard to how it is going to repay th'
debt, for President Roosevelt, in hi
recent speech in Georgia, spoke about
how, even though the public debt wa!
now in the neighborhood Of $30,000,'
600, 900, it wouldn't be dangerous i
the debt went to $55, ,000, 900, 900. Sup
pose, however, that the Federal deb
did go that high and the interest
rate were about 8 per cent, which
would be very good for the who'll
amount. This would mean an in
terest charge Of about 81 $50, ,0O0, 900
to say nothing of provision that ough
to be made annually for retirement
amounting to from $500. .000. 900 up
This means about s2,150 10000 II
service charges. If oD@ compares tina
sum with the whole MT inccme OF tn
persons above $4,000 = year-abou
$1,526, ,000, ,000-it is easy to see tina
the biggest burden Of taxation VII
have to be imposed on tie person
under SIS 900 year of Dgt income.
36,e00.e0 Not faxed.
It should be noted also that. Will
persons with net income Of unde
5000 q year had q net income o
$7,485 ,000, 900, this covered only tn
individuals who had taxable income
and hence those who made returns
This covers only 10 per cent of thos
gatnfuIly employed. In other words
there's q group with $50. soc, 900 90
Of income who pay no direct taxes q
all. This Involves about 36,000.O 90
gainfuIly employed persons.
To reach this latter group incom
taxes, Of course. can hardly be inn
posed to any extent. so the sales ta
and other indirect taxes on food
and necessities Of life win probabl
4 be levied 10 reach that larger class.
ffInanwwau1aA l0RK.l