Loyola University Chicago Loyola eCommons Loyola University Magazine University Archives & Special Collections 1914 The Loyola University Magazine, Vol. 13 (1913-1914) Students of St. Ignatius College Recommended Citation Students of St. Ignatius College, "The Loyola University Magazine, Vol. 13 (1913-1914)" (1914). Loyola University Magazine. Book 1. http://ecommons.luc.edu/loyola_university_magazine/1 This Article is brought to you for free and open access by the University Archives & Special Collections at Loyola eCommons. It has been accepted for inclusion in Loyola University Magazine by an authorized administrator of Loyola eCommons. For more information, please contact [email protected]. This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License. m Bill WMmbMbMb) V7\ /S-*-<r M\.c^7^ - 1 ra(raraH|®^®il|§S|i^ ^S(^li@fi(l)l®l(§)i(§ ?^ ; ^ iW(^mi(^mi(^ni(^Mn^M^(^Ml fl Digitized by the Internet Archive in 2011 with funding from CARLI: Consortium of Academic and Research Libraries in Illinois http://www.archive.org/details/loyolauniversity13unse "Hno tbere tbe laugbter=lovnncj ipan, Xeaos on bis joyous woofclanfc clan, ftbrcmgb balc^on baunts V —— Join Aaron Coition^ A, B« 14 arva, beata Petamus arva divites et insulas. I dream a dream of fabled ease Where the Blessed Isles across the seas Lie smiling, ever smiling; And there the laughter-loving Pan Leads on his joyous woodland clan, Through halcyon haunts, unknown to man, With song the hours beguiling. O fair, far land, thy portals Swing only to immortals ! Thy scented bowers, thy wondrous flowers, Thy pleasant ways of ease, Thy nights dew-dipped and breathless, Thy birds, unwearied, deathless These charms untold, I'd fain behold, Fair Isles across the seas. The dusk, with all its wealth of stars, The dawn, when clouds like crimsom bars Turn all the east to splendor, Bring roseate dreamings unto me Of Nereids flashing from the sea, Who turn their shining eyes to thee, Thou land of music tender. But ah, 'tis useless dreaming Thy woodland pools that, gleaming Like bits of sky, unruffled lie, Are not for eyes like these; Yet could my longing vision Behold thy fields Elysian, What peace divine, I'd claim as mine, Fair Isles across the seas. 1 &»*» i^l 'V-l */ 1 ~~YP\ff i ~V«^ Loo L, .Oonahoo, L„ L. }i„ M:5 9 BOUT five years ago the desire for a downward revision of the Tariff first received the voted expression of the people of this nation. The question of a downward Tariff re- vision has, from that time to the present, held the attention of the public eye. Such a contention found expression in the platform of the present Democratic Administration; and such a wish has finally—by the signature of President Wilson on Satur- day, October 4th, to the Tariff bill passed by Congress at its special Tariff session—been embodied into a law. When the question of a new Tariff Law appears before the mind of the ordinary individual such queries present themselves : What is the meaning of a Tariff law? In what does the new Tariff law differ from the former ? And lastly,—What will be the effect of the enforcement of the new Tariff law to the general public? Such queries are, because of the importance of the subject, quite worthy of consideration. A Tariff law, in the first place, is a law which determines the source from which and regulates the manner by which the Federal income—the support of the Federal Government—is to be obtained. In what does the new Tariff law differ from the former? By the former Tariff law and by every previous Tariff law, the Federal income has been derived solely from customs and internal revenue duties. Under former Tariff laws, imports, whether necessaries of life or luxuries, were subject to taxation ; and a system of taxation wherein the support of the Federal Government is derived solely from customs and internal revenue duties must, to sustain such sup- port, tax necessaries as well as luxuries of life. Now, the principle of the new Tariff law, in distinction to the former law, is to lift the tax from imported necessaries and to realize the loss in tax ac- cruing therefrom by an increase of taxation on imported luxuries and by the imposition of an income tax. What will, therefore, be the effect or benefit, to the general pub- lic by the enforcement of the new Tariff law ? A determination of such a question requires an examination of the law's stipulations. As is easily discernible, the new Tariff law contains two phases, namely,—its principle of removing the import tax from necessaries of life, and of making up such loss in taxation by an increase of — THE LOYOLA UNIVERSITY MAGAZINE 3 tax on imported luxuries and by the imposition of an income tax. Now, as the lowering of tax on necessaries is the real object or bene- fit which is hoped to be obtained through the new Tariff law, and as the increase of taxation on luxuries and the imposition of an income tax are inserted in such law merely as the means of accom- plishing such benefit or object, the lifting of the tax from neces- saries is by far the more important phase of the new Tariff law and should for that reason be the first in order of consideration. By the new Tariff law necessaries of life are either placed upon the free list or their tax greatly decreased. What benefit will thereby accrue ? Such a change in taxation will place the traffic in necessaries in this country—the purchase of which plays such an important part in the living of the average individual—upon an equal basis with the rest of the world; and as a certain result de- stroy the centralization or monopoly in the manipulation of neces- saries of life, which exists in this country as a natural consequence of the artificial trade atmosphere occasioned by the former high rate of import taxation known as the great protective trade wall of the Tariff. The benefit, therefore, to be derived from such an altera- tion in taxation will be, beyond the destruction of monopoly, the purchase of necessaries at a lower price, such lowering of price amounting to the difference between the former and the new rate of import taxation,—estimated on an ad valorem basis at more than ten per cent. A realization of the benefit to be derived from such a change in manner of obtaining the Federal income brings us to the exam- ination of the means through which such purpose is to be accom- plished ; and if such can be proven justifiable, the object of the law, as to its fairness, stands unchallenged. As before stated, the framers of the new Tariff law hope to realize the loss of tax upon necessaries by an increase of tax on luxuries and the imposition of an income tax. Now, as the increase of import duty on luxuries affects the general public alike and really in no perceptible degree, the imposition of a tax upon incomes of individuals of a certain amount is the real test by which the fairness or faultiness of the means of accomplishing the hoped for benefit is to be judged. The provision of the new Tariff law in reference to income taxation exempts from tax all incomes of single persons amounting to less than and equal to $3,000, and all incomes of married persons amounting to less than and equalling $4,000. Upon incomes in excess of said figures such stipulation exacts a tax of 1% upon the entire portion in excess of $3,000 or $4,000, as the case may be, that is, such provision exacts a tax of 1% upon the entire income less the amount of specific exemption, the amount of exemption being $3,000 if the taxable person be single and $4,000 if he be — THE LOYOLA UNIVERSITY MAGAZINE married. In addition to this tax the law provides for an additional or sur tax of 1% per annum upon the amount by which the total net income exceeds $20,000 and does not exceed $50,000, and 2% per annum upon the amount by which the total net income exceeds $50,000 and does not exceed $75,000, and 3% per annum upon the amount by which the total net income exceeds $75,000 and does not exceed $100,000, and 4% per annum upon the amount by which the total net income exceeds $100,000, and does not exceed $250,000, and 5% per annum upon the amount by which the total net income exceeds $250,000 and does not exceed $500,000, and 6% per annum upon the amount by which the total net income exceeds $500,000. Such are the stipulations of the new Tariff law in reference to the percentage of individual incomes exacted as a Federal tax, and it is to be noted that such tax exacts but a small percentage in propor- tion to taxable incomes. In order to judge of the fairness of such a tax requires a knowl- edge of the distribution of wealth in this country. Statistics show that nine-tenths of the adult males of the United States have yearly earning capacities of less than $800 ; and that of the average family of five less than 10% have yearly incomes amounting to $2,000. Such facts set forth in indisputable clearness the fact that the greater portion of the incomes of the vast majority of individuals in this country must be extended in the purchase of necessaries of life, and that as a consequence the greater burden of Federal support is placed upon the shoulders of the consumers, and as a result large and small incomes are not proportionately taxed.