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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (May 3, 1916)
MEDFOKP AfATL THTniTNRf MKHFORP. OIM.OON. WKMNKSDAV. MAV 3. 1010 PAGTSMVTS INCOME MS OUGHT TO YIELD $400,000,000 Sources of Income Itemized Por tions From Salaries, Fees and Ownership of Property Two- Thirds of Property Owned by Per sons Who Should Pay Taxes. Hv HASH, M. MANLY. WASHINGTON, I). C, Mnv 3. In yesterday's article 1 indicated thu KPticrnl dinrni'tor of the evasions of thp United States income tax, which, in the nrrRrepnte, amount to morn than ,f:i2(),OOn,0(IO an amount which this nation stnnds in desperate need of for her "preparedness," a hill that cannot possibly he paid hv the work inpnan nlonc. In today's article 1 will exhibit the evidence upon which l'hase the "statement that the income tax should yield 100.000,000 annu ally, instead under the more .H0, 000,000 which tho United Statos treasury collected under this statute last vcar. i The fedofal income tax is a tax upon the income of individuals and also upon the net earnings of corpor ations and also for what is known as n normal tax of 1 per cent upon the incomes of individuals amountiiiK to more than $3000 in the i'iho of single persons, or in the case of married persons of more than f 1000. Income dciived from the dividends of cor porations upon which a tax of 1 per rent has Already been paid at the source is exempt from this, normal tax, hut is required to pay the supr tax. In each case the law allows unmarried persons an exemptin of .$.'1000, and marricil persons an ex emption of .f 1000. Individual Income 'lav In addition to the normal tax, indi viduals with incomes of nioro than $120,000 are required to pay iih addi tional tax, known as the supct tax. upon the amounts hv which their in comes excrt'd .f'JO.OOO. The super tax rates are: On income over $20,000 nn.l lei than $.0,0ni, 1 per cent. On income over $.10,(100 and !. than $7.,00(l, 2 per cent. On iiieom- over $76.0(10 and lcs than $100,eno, :t jMr tent. On income over $100,000 and hiss than $UftO,000, I s-r cent. On income over $'J0,0U0 aim lu than $300,000, .'i r tent. On iuuoinu ovur $."00,(100, 0 rt cent. It Is worth while nlimc at thi jKint how much difference it nrike whether a, dollar of ii.eome i ili jeut to the miper lax n onlv ' the normal rate. A dollar in an income over $f)00,000 must pay not onlv the nnrniRl tax of 1 cent, hit nlo i hipor tax of 0 cents, so that ovorv dollm of the inoomo of the very rich which Ik cbCHpini; tn.tiin i eiwtitisr the trunsury seven times as miudi as if tho fraud were committed by a Kr sou of moderate income. It is very important to remember this. iW it j explain how the tax collections can be rontly incresel oven though only n relatively smaller amount of income is evading the tax. WluU It Should IVoiliiw In order to .ee what the inuomo tax should probce, it is necessary to an alyze the national income to ascertain what jmrt of it is received by per sons with incomes over $11000 who should bo Mibwt to the tax. iy na tional income we mean the HgftregHtw income I'-eeived during the ,('r by the Mde of the I'nited S'ates and not the amount of the national pro ductiuu, for it is obvuw thai a ury laru piy-t of the national ircome is rwuivud by Mron who havo no wrt in production, either as owners, tasii Mgerti'or worker, but who derive tauir ijiconio from professional and jHironul services of nil kiuiU. In onler to intimate the ainouut UK)ii which income tax hould be paid we will first ascertain the total hrouiiU of the income of persons who thould sv income tax, and I Ik d b.v'iMuctiHg the exenitioiis of :iouo U iAWHi allowed ia the case of mil. vi4aJfc, arrive at the amount Uu which the tax sboahi w ased. Th- National inroeie of Um Tailed tstatf in 1U14 'us in'oxiui.Vl.v forty--ix billion dollars. In u later rtieU I r.ill show you in detail how ta figure is armed at, an I whv there can be no question that it is tvull within the facts. Source-, of lisoust The iuuume of person who should wy an lucooie tux are derived from one tt' three seuru: 111 Sul.ineo oer?afri)fl; () r'tMM tururof.'iotonil i-cm'-is amounting ti mmro tb.m SOno. 2j Iccoae i'ereJ ire ' owrerehip of pr 'prtv it the uM'i' t If " &? & .1 , ' ' r. i . r, f'o hi per Hr A " . ' t I aru '.i'i ., ' -t i t. "'", rit , j , a u , w. rtiicr has hwm made fur the fact thai the fxettintloti for married men $ lOfM). Th lotal amount of waffes and sal aries wi4 in the Culled Stale- i-i KM 1 we know with reasonable exwt uv-n to have ben in round future $l.i,000,(lIO.OtlO. Of thiv total, at least $oOO,000,000 was paid to men who received salaries over $.'1000, The total number of iktsoii who-c incomes are derived primarily from fees is whowu by the censii orK':' pillions to be approximately ."00,000 While there nre no exact data uiwoi which to base an estimate of their total income, the available informa tion indicates very certainly that their incomes avcniKc at leat $1800 aid amount in the ajotrofiatc to more than $1100.000,000. Of this ue may snt'-dv intimate tlmt $:i00,000,000 is receiv ed by persons with incomes exceed iiitf $11000 per year. rroKrty and Ituslness Tn Tho income derived from the own ership of property nnd the condi.ct of business amounts to $110, 100,000 000. This fipire is arrived at by de ducting from the total nntiounl in come (!(! billion), the nmount of in come in the form of anilines nnd wages (IT) billion), and fees (000 mil lion). Hut it is very closely checked by an independent analysis of the retuntr. from procrty ownership and business innii(i;cuiunt. From the records of appraisals jf estates in a number of states and from the rosonrehes of statisticians, we know that more than two-thirds ot the property of the nation is owned by person, with incomes of more the,. $11000, who should he income tax payers. It is probable that the pro portion should be more nearly three fourths, but it is absolutely certain, as was shown by the report of tho commission on industrial relations that less than 'J per cent of the adiill population owns two-thirds of all the wealth of the I'nited States. On Ihn basis, therefore, that Iwo thirds of the income from property goes to pcrMins who should pay in come tax, we have $,J(),O(i(i,OO(),OO0 from this source. Why Deductions Allowed The income tax law ponnils the de duction of mi allowance for the de preciation of property and for taxes. Depreciation is, of course, cluirgcuhlo only upon property subject to worn and tear. The depreciable property owned hv persons who should be sub ject to the income tax amounts to about $(Hi,000,000.000. At the rate ot f per cent thu depreciation churKO is $:i,:oo,ooo,ooo. The taxes to be deducted ale onh those which are jwid hv persons with incomes over $11000. It should be noted also that only three-fourths tit the receipts of national, state and lo cal government uro derived from taxes. In the case of the federal Ifovemmeiit the only direct tax is the income tax. The other federal taxi's (customs, excise and stamp taxc) are taxes upon consumption and arc distributed over the whole isipulatioii. At the outside income ta.ayei, who make up less than 'J per cent of the population, do not nv more than 10 per cent of such indirect taxes. Ot the state, county and municial taxes, which are chiefly property taxes, we may aumc that the income taxpay er ay in proportion to tlioir Hoiuinxs of property, that is two-tlurds of lie total, hIIIioukm it is a notorious fact that even in the case of local taxc the most widespread evasion is anion; the wealthy. Tho Final I'Ikum We have, therefore, as the amo.inls of the taxes iaid by income taxiaty ers, the follow:in( figure.: Federal taxe. Income tux, $80, 000.000; other taxes (1-10 id hv in come taxpayer, $(10,000,000; total, $110,000,000. State, county and miiuieial taxes Two-thirds iwid bv income tax payers. $070,000,000. Grand total, il. 110,000.000. The income tax law allows a de duction for lulerest paid uhih indebt edness, but no deduction for this item need be made in these ealeulatu ns because in making up the sum of the national income no lueome donved from interest was included, on ilm theory that it was a ulf-eaiieelliaj item. That i. if we iucludo the in come derived from intersst on a mnrt gage, we must deduct the s-nne amount tlni the income ot a furrier a part of Ins fixed harKc. T lie 'iiihiniH AMERICANS TAKtN OFF STEAMER BY BRITISH NKW VUHK. Mav i. filtu-cr- the liolland-Ainerii an tun- .ti,'iiii)hi Ityndam, whnii arrived todux, report ed that two women who claimed to be Amencan citizens, residents of San FraneHico, were taken otf the ship by the lirituh at Falmouth with out, t-Aplanitiin and held tor exam ination The women gaxe thtir nuine-.'-. All ' (iertrude hwlin .m.i ilau.'h .r Mi- nr. Mr , Y ii i r i ii c ir -rd s V K r I " -"r I r I SOU! CREEK LOOKS TO RAILRl D COS 1000 OR DFVFLO INI One of the trlliilary mlnliiK dl-'-trlru to the lllue Ledge ramp I that of rbpiaw creek, In wlilrli there have been probably 100 clalnta located. Twenty-five of tlienc elalins are on the Oregon side of the slate line. ISd wanl Spencer, who enjojed a brief vlult iti Medford yesterday, located his claim In the Squaw creek camp thirteen years ago and ban remained with them over since. "My porma jent homo Is there," said Mr. Spencer, "nnd. now that wo have n real pros pect of ftottliiK transportation for our ores, 1 am willing to liollove that my forttino Is there. "The Squaw creek camp Is a con tinuation of the Hluo I. edge belt In all lis rlchnoss of ore and extent of veins. There are sixteen or seven teen distinct and well-ileflned veins In that part of the belt that run from 10 to 200 feet In width. The ore from these veins runs about the samo per cent In copper and richness In Kold as that from the Uluo Ledge camp. Tho tonnage this camp will supply to the railroad when ready for service will lie Innuendo. A Just estimate would scarcely be believed by thoyo who, although Medford Is loss than twenty miles awny, are prone to discount n minor's flRtiro on anything. IIiiIImmiiI Our SaUntlon. "The railroad will prove to bo our salvation. Wo cannot develop largo mlncH extensively without tho mentis of transporting our ores within rea sonable cost to the necessary plants for proper treatment. Hut tho de velopment of the entire lllue Lodgo territory will supply such an output of ores aa will quickly Justify tho In stallation of concentrating and smelt ing plants. They will add greatly to the pavroll of the district. Thou sands of people will be required In, this work. That is another ostlmato that many will question, because thoy do not reallxe tho extent of the mining region in consideration and the number of men Its development will necessarily employ. Tho opinion of these people, perhaps oxeuwihly Ignorant of the situation, ought not to go for much Thoy may talk vol ubly about mining without much knowledge of mining, but such talk cannot deceive the miner, nor ought It to lie permitted In deceive anybody else. You have already published details of how great titles have been made by mining development alone. Such Instaucea are numerous- Den ver and other cities In Colorado; Spo kane, Wash.; Hum, Mont., and other places of almost equal note. Why Not .Mn.lfonl Also? "There Is no possible reason why Medford should not lie one of thosn cities. If It surrounding mineral wealth should be developed. In fact, I do not now call to mind a city so happily situated, whoso vast mineral wealth lies so close to Its boundaries, and Is so choaply accessible In ovory way. Your frultmen, stockmen and farmers In the general lines all know that freight rates consume the great er jiharo of their profits, no matter in which direction they ship their produce over their one system of rails. I read In your paper recently that thoy have alread estimated the groat reduction In freight tariffs a shorter road to the coast will insure. "Thero la an abundance of timber for use In the mines and for other local purposes in the Squaw creek district, but not much of the com mercial kind. On the Car berry fork of the Applegate, oh the Oregon aide, and on Cougar creek, a branch of EACH SOLDIE ENU lr Hell hn become a convert In Ibe merrially Important airship of Mm eps lin lype. Me believes tluvc Krvnt ' future nnd iwcdict that dnring thr ihriuiblc kb bajr1 will be Ihe com- neat forty venn the ce?nfflreinl ir- 0 HHBHII-B'-ll.lHULg shift nf the 2pftlti Ijrj will orfc M jrreal a revolnlbm in transport Uon a did the railroad. r STED H Ml JL i$ef5fw 2m3m : :55-:::iki W ASIIINOTON, Mav :l. It n eas ier to nuthorie a bm aimv than to get men to serve in it. If eongiess approves the pending legislation for '230,000 men in Ibe regular federal senicit, it will be four year at least before these men can be secured un less the present rate of enlistments is greatly increased. The department is getting men now ut the rate of about 7."0 a week. The war detriment ia expecting to spend $2,000,000 to se cure '20,000 men, and at this rate the cost of enlisting 1.10.000 iidditionnl mill will be .$18,000,000. Losses by desertion nnd retirement will make the required enlistments even greater. It is the contemplation of facts like these which lead many intelligent aniiy men to conclude that congress will have to do more than authorize an increase in the aimv that army life will have to he ninde more ut tractive, either by increasing- the pay or lidding educational opportunities to the service, if fighting men are to be secured. To Manage 'aiiisilgn. Henry Morgcnthati, lately ambas sador to Turkey, will uuuingo Presi dent Wilson's campaign for re-election. It has long been known that Mr. Mc Combs is entirely out of sym pathy with Hie Wilnn administration and (he iiiinoiiuccmeiit of his resig iiution caused little suiprise. Mor- gcuthait was successful four yearn ago in securing funds for the Wilson cnmpiiign, hut the white house wants it understood thai .Mr. .Morgeiilhau is not enlisted merely a a inoney-gel-ler. He is to have practical direc tion of the work of oigiiuization for Wilson's nomination and re-election. La l-'ollelte ltcfcivndiiin, Senator Lit Kollelte has u plan for u iialiou-wide referendum on the question of going lo war with der ma ny. In eiiso diplomatic relations are severed .Mr. m Follctle would have congress iiulborixc the use of nil postoffiees Ihioughoiit the country lo lake a mail baljyt of men and wom en of voting uge answering the ques tion whether or not they favor war. Water Wiivlos. The "wilier wireless" telephone is the latest discovery. It is the inven tion of scientists in the nnvv depart ment who have been working- on the many problems f the U-bout. A de vice has been worked out bv which the water can be used to curry sound just as Ihe ether waves earn- elec trical vibrations between Ihe wirolc tolcgrph stations. Willi this device two submarines will he able to tele phono to one another just as well as if the wires were stretched between the boast connecting regular tele phone upiairatii. The water tele phone is attached to the outer wall of the ship's hull in -iii'li a way that Us diaphragm is brought in direct contact with the water. The vibra tion conveyed hv the disishragin lo the water which transmits (hem to a receiviiiK instrument of similar char acter in the other boat. H.xperiuienls now are in progress to determine how far the water will transmit sounds. It ia found that the water wirelc-s will oMralc over distunccs as i;r .it as telegraphic ether wireless, the world may soon see a iraiis-Atbintiii and trnns-l'u-cifie wiieless tel phone service. Zepindliu. of I'm nit). I'hat the world bus not yet awak- m that stream, there Is an abundance .ened to the revolutionary possihih of merchantable Umber of tho finest type; hundreds of thousands of dol lars' worth The Kpauldlngs own most of this timber. The operation of the mines will develop the timber In terests. A Mining camps ot large pro portions' use Immense quantities of lumber lu these mills you will have other large payrolls It all runs into money. There are millions of dol lars' worth of these raw materials very rlosi- to Medfoid's liaikvards tie and piobabilitios of aenal navi gation us demonstrated in the Kuro iean war is the belief of Dr. Ah-xnn der 0 nihil in Itcll, inventor of the tel ephone and one of thu pioneeis in aviation. Or. Hell for inuiiv vcar. believed in the beavier-thaii-air solu tion of the inr-lii problem and most of the succeitu! 0XHriluciital wmk dune in this country along these lines was conducted under bis pcr-oii.il mi I k rvi-.mii iiml i uur.iunn' nt nu f V T ? T ? r t r y ? f t t t ? T ? ? ? T T t ? ? ? V ? T ? ? V f t T xy Closes It oors AHRENS STORE IS CLOSED While Stock is Being Prepared for Sale to the Public 20 Experienced Salespeople are wanted. Apply at back door. Ask for Mr. Craig. For further particulars see daily papers : f f r f T r v f T T T f r r i t t f f T V t r r r r T T f T V ? T r r r .. x -r x r r x ! z r x r z " t D c SJMJK1 rrjjS&uri PXr, 5 01m Get the home care of shoes habit It pays Well dressed people always have well shined shoes. SimoiA, with the key for opening the box, its quick shining qualities and the bandy SniamA ME SET for polishing, makea tho jgr-j numu euro ui rniuca a ) pleasure - ssr -?-,v -';SRW.,,a ggf'&'.- BLACK TAN WHITE rrL . 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