Evening star., 1938-01-24
TAXES TAKE BULK
0FLARCE INCOMES
Table Reveals Federal and
State Governments Reap
Heavy Levies.

NEW YORK, Jan. "a (N.A.N.A).-
Evidence that the lions share Of
high salaries goes to pay income tas
levies, Federal and State, IS presented
IN table prepared and published
by the New York Sun.
Recently the House Ways and Means
Committee made public the earn
ings Of the highest-paid men and
women in industry, in finance, and
IN motion pictures, the figures repre-
eenting salaries, bonuses, commissions
and all other forms of compensation
for services in the tax year 1886
as reported by the employers to the
Treasury Department..
The report has been criticized in
several quarters as giving an incom-
plete picture. Authorities on tax mat
ters have pointed out especially that
no report on income can be wholly
accurate unless tax reductions are
shown. In the New York Suns ta-
BILE an attempt has been made to
make the picture more complete by
computing net earnings of the per-
sons named after Federal and New
York State income taxes had been
deducted. For the purpose of the
comparison it has been assumed that
all were subject to the income tax
Of this State, although not all were.
Enormous Differences.
The table is admittedly not exact,
for the reason that individual eX-
emptions are unknown and cannot be
deducted, but it does show with fair
accuracy the difference, in some cases
enormous, between gross and net earn
ings for more than 500 persons whose
salaries were in the top flight On the
other hand, it should be borne in mind
that the figures were only for compen-
sations for services, which did not
represent total income for many Of
those concerned, and that there is an
other possibility in this situation, in
that no allowance has been made for
losses which might to large extent,
in some instances. be Offset against
salary and similar receipts.
In round numbers the figures give
this picture:
Total salaries SAG, soc, 900
reoeral tax ------------ 16,600 900
State tax ------- $500, 900
Total tax ----------- 20,400 900
Net salaries --- 29,200, 900
Publicizing income statistics reported
to the Federal Government has been a
matter OF dispute for many years-for
as long as there has been an income
tax. in fact.
Agitation at Start.
There was strong agitation for pub
Icity clauses when the Revenue Act
OF 1918 was passed. but they were not
adopted. In 1924, however, a coalition
OF Democrats and radicals succeeded
In inserting such clauses in the tax
law OF that year. and President Cool
1dge signed the measure, although he
protested against the publicity plan
as he did so.
In 1925 the amount Of income tax
paid by all persons was open to gen.
eral inspection, but in the new bill
passed that year the provisions per-
mitting that were stricken out. This
was over the protests of Senators Nor
rls, Walsh, Borah and Smoot, and
Representative La Guardia. There was
sporadic agitation thereafter for re-
enactment Of the publicity clauses or
their like, but it was not successful
until 1884. The income tax law en-
acted in that year provided for the
pink slips" duplicate copies Of the
return, and required that the COM
missioner Of internal revenue make
these available for public inspection.
Much opposition arose, however, and
before the deadline on March IS, 1885.
Tor the filing Of returns, the Congress
had voted not to make the pink slip
information generally available.
List for Congress.
The lid was not clamped down en-
tirely, however, for section 148D was
added to the revenue act of 1884. pro-
viding that under regulations pre-
scribed by the commissioner (of in
ternal revenue) with the approval of
the Secretary (of the Treasury every
corporation shall submit a
list OF names Of all officers and en-
ployes and the respective
amounts paid to them if
In excess OF $4,000" 1t further
provided that Congress should receive
. list Of these persons each year.
That Is the status OF the matter
now, and that is how the names and
figures In the attached table cane tn
be made public. The figures speak
well for themselves. It will be noticed
that the $561,3l1 compensation of
Alfred p. Sloan, jr., president of the
General Motors Co., who heads the list,
Is $165 ,34l.98 net, after allowance for