The people's voice. [volume] (Helena, Mont.) 1939-1969, 1948-11-05
By j. M. PETERSON, Poison
THE PERSONAL INCOME TAX

Tax experts and economists throughout the coun
try have recently made extensive studies of the func
ton and the place that the income tax should play
in system. 1t is generally accepted that
personal income taxes should provide the largest
share of all public revenue.
Of particular interest the findings of the
Research Committee of the Committee for Economic
Development.
In discussing the place of the personal income
tax, this committee says:
First, it is convinced that this form of taxation
has less of repressive effect upon production and
employment than do sales and excise taxes.
Second, it is convinced that this is the farest
form of taxation, because it is the only that
be closely adjusted in accordance with ability to
pay
Third, where the burden falls and who pays it.
is clearly evident. 1t is and mischievous
fallacy about taxation that it is possible to relieve
individuals of tax burden by levyng taxes goods,
corporations, transactions.
Fourth, The result should be to make citi-
of their stake in the nation and it should
tend to more economy and efficiency the part of
the government"
System Hansen & PerlOff state eff the standards
Of wel-designed tax system to be met; the fol-
lowing improvements in the state tax structure are
needed: CD Abolition of the general sales tax;
~. Greater reliance personal income and death
transfer taxation; CD Drastic reform of business
taxation"
Harold NJ Groves in Postwar Taxation and Eco
nOmic Progress written for the CED urges greater
reliance the income tax in the following
"Al property and income attached sooner or
later to individuals, and there sound objec-
tives of taxation that cannot be achieved with per-
sonal tax system Pig. &c.
IF the graduated personal tax is by far the fair
est and least repressve of all taxes most forwards
looking people believe then we should not restrict
its scope that it cannot possibly play major role in
the revenue system" Pig. 374
"Our state income taxes with their high exemp-
lions and national rates low income, are an ex-
ample of taxation that provides mostly talk and very
little We praise the income tax but rely
the property tax and sales tax to pay teachers
salaries" Pg. 375
DR.. Groves goes on to say that while special ex-
cises such items liquor and tobacco are toler-
able substitutes for the sales tax they not desir
able and should be applied only when the income
tax possibilities have been exhausted.
The great Importance of the personal income tax
as viewed by the CED is best illustrated in chart
form. See Chart [.
NET INCOME OF 40 BILLIONS
BUDGET ID BILLIONS
Beginning at 1877 rate
Personal Income AZ g Billions
Corporate Income Tax ----------------------- 81
Estate and Gift Taxes ------------------- g
Excuses Tobacco, Liquor, Gasoline ---------- 20
Customs --------- -l----------------------- 8
Miscellaneous 8
TOTAL Excluding Social Security 1873 Billions
Chart 1, page ga Postwar Federal Tax Plan High
Employment.
Launching tax program which places greater
reliance the income tax of revenue is
not without obstacles. Regardless of what is said
of the logic, fairness, equity and progressively of
this tax it is comparatively new; because the
greater bulk of the total national income goes to
Chart II
DISTRIBUTION OF FAMILY MEMBERS, PER CAPITA
MAJOR CATEGORIEs OF CONSUMPTION BY
FAMILY p.p.o,. A A" pss Per- Per
INCOME LEVEL nun aie % Family Ises
IA