The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1941-08-11
LEFT OVER INCOME
(Fort Myers News Press


The new federal tax bill does pretty good
job of soaking the RICH though not enough 70 as
courage anybody from wanting to be that way
Regardless Of the healthy cut Uncle Sam takes,
those in the money will still have plenty left to
provide an incentive for staying in the upper
brackets.
For example, a fellow with an income of $780,
600 year will be nicked for than half of it;
$53,3l040 before deductions being the tax under
the new bill But that will still leave him with
around SAT 900 to spend, which isn't hay.
The reason he will try to stay in that class or
60 higher, say to $4,000 year where ne will
have $50 900 to spend is because he will be whole
lot better off for spare change than person with
an income of $4,000 The tax on that is around
$1,000, leaving $4,000 for the cost of high living,
rainy days etc When it comes to an income OF
81 900 the tax is down to Sl440 for an unmarried
persons but the amount left for grits and shows at
the Ritz is only $685.
If the $1,000 fellow can get himself up to ST.
600 he will have almost $1,000 after the govern
merit gets through with him, which makes trying
worth while When he gets to $4,000 he will have
$4 500 left and if he should marry he could keep
almost $4,70O That variation probably isn't eco
nomically sound but the government doesn't think
wives cost very much.
A man with million dollar income will pay
tax of S737 34040, and no doubt yell bloody muir
der But with $263oOo left he can stand it better
than fellow getting $3.50 month who will have
to cough up 500 of his February salary to get
square with Uncle whiskers on next March IS
With $263OOO in his jeans what would anybody DO
with an additional $7S7,0OO? But that question is
easy to answer for the $slo8 that comes out OF the
S15O-a-month income.
The amount cleft over" is the basis for the
theory that the government should go lightly on
the smaller incomes and hit the big ones hard
This view holds that taking $4,000 from $780,
600 income would still leave the taxpayer twice as
well off as a man with an income of $4,000 would
be without paying any tax.
In answer to that it is commonly argued that
if the government didn't take $4,000 of 100000
income the amount of the tax would be invested
in manner that would give employment to peo-
pie earning 81 800 who otherwise would be out OF
work and therefore not subject to SlOO tax 1t IS
also pointed out that without $4,000 to invest
there would be fewer 100000 incomes, so that
with higher taxes the upper brackets the gov
eminent is killing the goose that lays the golden
eggs.
With a wealth of statistical studies and expert
advice available, federal tax bills take all these
factors into consideration The result in the pres
ent instance is that an annual income OF S50O0,0O0
win pay nearly $4,oOO0OO to the government That
seems pretty steep in comparison to the Sll from
the $3.50 month income of married man with
two dependents. However the distance is even
farther between what the s3,00o-a-year man has
to spend and the ST 900 600 left with the fellow in
the top bracket In that distance lies the incen-
tive, if NOT the willingness, to pay income
taxes.