OCR Interpretation


The day book. (Chicago, Ill.) 1911-1917, April 29, 1916, LAST EDITION, Image 10

Image and text provided by University of Illinois at Urbana-Champaign Library, Urbana, IL

Persistent link: http://chroniclingamerica.loc.gov/lccn/sn83045487/1916-04-29/ed-1/seq-10/

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jjiw.MJ'-JU.MJ iji uiyyijj
5i,uoo,ouo,ooo representing income
of less than $20,000,000 upon which
only the normal tax is paid, leaving
the income assessable for super-tax
$7,200,000,000.
The average rate, of super-tax lev
ied in 1914 was 2.6 "per cent. It is
certain that this is very much too
low. Since the evasions were great
est among persons with incomes
which should have paid 5 and 6 per
cent super-tax, it seems probable
that the average rate sholuld have
been 3.5 per cent To be on the safe
side, however, we may assume only
3 per cent. At this rate the super
tax should have yielded $216,000,000.
The total assessments upon indi
vidual taxpayers should therefore
have been:
Subject to normal tax
Total income $16,400,000,000
Exempt under $3,000 1,875,000,000
Remainder assessable
at 1 per cent 14,525,000,000
Tax yield 145,525,000
Subject to Super-Tax
Incomes over $20,000 8,200,000,000
Exempt under $20,000 1,000,000,000
Assessable at 3 pet. . 7,200,000,000
Tax yield 216,000,000
Total tax yield 361,250,000
The total yield from the incomes
which go to individuals should there
fore be $361,000,000. This does not
include incomes derived from specu
lation in securities which, while im
possible to estimate with any exact
ness, should have paid a tax of at
least $20,000,000.
It will be remembered that in the
above calculations the income de
rived from dividends was included
with other personal incomes, al
though it is not taxed except at the
source. In dealing with the corpor
ation tax we must therefore exclude
this item which we have estimated
at two-thirds of the total dividends."
The corporation tax for 1914 yielded
$39,144,000. Sec'y McAdoo on page
18 of his annual report states that
the "omitted" taxes amounted to
$20,891,000, which would make the
total collections $60,000,000., Esti
mating that one-third of the net
earnings of corporations go .to per
sons who do not pay income tax we
have at the very least $20,000,000 to
be added to the personal tax as es
timated above.
The total collections from the in
come tax should therefore have
been:
Normal tax $145,250,000
Super-tax 216,000,000
Tax on speculative prof
its not included above 20,000,000
Tax on net earnings of
corporations not paid
to individual income
taxpayers 20,000,000
Total $401,250,000
The total income tax collections
should therefore have been more
than $400,000,000, instead of $80,
000,000 which were collected.
Manly's next article exposing the
fraudulent attempts to defeat the in
come tax law by the very rich will
appear in this newspaper Monday. '
o o
QUESTION FOR THE DODO BIRD
Manufacturer's News has a col
yum headed "Cacklings of the Dodo
Bird," and birdie slips over this one:
"The Day Book thinks because
twelve policemen were killed last
ye"ar in Chicago we should forget
about the seventeen American mas
sacred in Columbus, N. M."
Why don't Chicago newspapers
get more excited about 12 policemen
shot and left on the sidewalks in
Chicago than about 17 strangers
way down in a wild lonely country?
Come on, dodo bird, tell us.
Is it the Hearst Mexican ranch?
And who is taking the Tribune by
the neck and shoving its face and
nose into the Mexican mess all the
time when the Chicago mess is neg
lected? Why not straighten up this home
town of ours before going to the
tropics?

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