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An Income Tax Conundrum

An Income Tax Conundrum image
Parent Issue
Day
4
Month
January
Year
1895
Copyright
Public Domain
OCR Text

A very knotty que.stiun has arisen íd rhe preparation of the income tax regulations now onder consideration by Secretary Caí lisie and Commissiouer Mil'ler. It is at what point in the salary oí Uniterl States official th8 income tas -hould be cóllected. Governuipnt disbnrsiug óffloers are held responsible fot the oollection of the income tax on salaries pairt out by them. Does the law contémplate taxing the salary per se oí tho person vyho reoeives it? Only salarios above $4,000 arö taxable. A case has beeu put ivhere if the salary is, say, $8,000 per year, and the dwwer of it diea áítef six nionths, the ñoverniueiit receives no income trom it unless the disbnrsiog oiïici'r r:!kes out the tax pro rata montfaly. At this point the difíiculty i.s eiiCQnutered that the drawer of the salary has not receiyed over S4.000, and therefore no iucome tax has accrned. If the drawer of an $8, 000 salary dies or resigas after receiviug slightly less than half of the yearly salary, should the new appointee pay an income tax out of his littlo more than half of the $S,000 or onlyon what he himself draws? It does not soeni to strike the trcasury ifficials as fair that one man should pay nn income tax on part of the salary rlrawn by another, and yet if snch an amonnt were (irawn :i,000 by one and ■ ■'. loo by another man by holding the latter respousible for tho income tax on the salary he draws on the excess over the $4,000 tho government would remily 2 per cont ou?100. Was this idea contenaplated by the law? The same principie applies to all cases of salaries recoived by United States officials, members of the cabinet, senators and members of cougress and others who receive

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Subjects
Ann Arbor Argus
Old News