Worcester Democrat and the ledger-enterprise. (Pocomoke City, Md.) 1921-1953, 1942-03-20
NO TAX ON $4,000
IN 1914. this YEAR
IT BRINGS IN $249.

In 1914 a married man earning as
nluch as $4,000 annually could view
1he federal income tax adopted the
wear before as an interesting phen-
omemon. secure in the knowledge that
il didn't affect him. On March Is of
this year the married man who earn
I'd $4,000 in 1871 will owe Uncle Sam
about $249, nearly three and one
half weeks salary. The $18-a-week
rypist will owe $21.
Twenty-eight years ago when the
first national income tax became due
only 367, 1913 Americans filed returns
showing that they had taxable net in
comes. This year 22,0O0,0O0 Ameri-
cans will file returns and make pay
ments ranging from a few dollars to
hundreds of thousands.
In 1914 individuals paid total of
S28,253, 535 and corporations paid
S43,127,740 On March IS, 1912 gol-
den stream estimated by research eX-
nerts Of the Tax Foundation at ST.
147OO0,0OO will pour into the federal
rreasury-more than 100 times as
much as the 1914 collections.
The story of the income tax and
how it grew is the story of America
during the last quarter century. A
graph of income tax collections charts
The periods Of national crisis, ON ma
as accurately as a bomber pilot charts
tional prosperity, Of peace and of war
MS course. The graph for this year
peril since Valley Forge.
will show the nation in its greatest
The same graph will support the
contention Of tax experts and econ
omists that tax levied is rarely a
oandoned- particularly when it
brings in revenue as effectively as does
The income tax. While the three ma
jor sources of federal revenue Gus
TOMS, alcohol and tobacco-show a
fairly level return, increasing only
gradually each year, the income tax
shot to a spectacular first place al
most from its inception, with peaks
and valleys as prosperity waxed or
waned, but constantly bringing in
more money than the three older tax
es put together.
Great figures Of American poll
tics fought for and against the tax.
William Jennings Bryan lifted his
golden voice in it's cause; Cordell
Hull, now our distinguished secre-
tary of state, then an obscure con-
gresham from Tennessee, gained
early recognition as an expert on the
tax. Richard Evelyn Byrd, speaker of
the House and father of the present
senator and of the Xplorer-admiral,
predicted direly (and seemingly, cor
rectly) that if the tax were adopted
can army of federal inspectors will
descend upon the state" Charles Ev-
ans Hughes, as governor of New York
favored an income tax but feared it
gave the Federal Government undue
powers over the states. Elihu Root,
William E. Borah, the powerful Mel
son Aldrich, Indiana's distinguished
Beveridge "Old Bob" LaFollette and
sthen-young Alben Barkely waged bit
ter combat to further or oppose the
measure.
1t took four years for the neces-
sary number of states to ratify the
Sixteenth Amendment which made
the tax constitutional and an income
tax law became effective March 1,
1913. 1t levied a one percent tax on
the net incomes of individuals plus an
additional surtaX ranging from one
percent on incomes between $4,000
and $4,000 to six percent on incomes
of 100000 and over. A personal ex-
emption of $4,000 was allowed each
taxpayer, plus $1,000 additional if /
married and living with husband or
wife.
In sharp contrast on September
20, 1941, President Roosevelt signed
a revenue act that will bring in the
greatest tax collections ever paid by
the people of any nation in a single
year. 1t reduced the exemptions of
married citizens from $4,000 to ST.
500 and of single persons from $500