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Show An Interesting Life Wednesday, Feb. 25, was the birthday of the Federal Income tax. Born in 1913 the tax has, in the past 46 years, grown to be quite a boy. The income tax started raising a ruckus right on its natal day away back in 1913. Folks were outraged at the sums that would pour into Washington to meet the rising costs of government. Why, the first year of the national tax levy, $80 million left home-town pockets to journey to tmacnrv fnffere On a nAr-ffinlta haslet that first voar. people paid 82 cents each. In the face of the furor over the birth of the tax, however, how-ever, fiscal prophets of the day calmly assured the public that corporate and individual tax rates would never reach 10 per cent. Somehow, somewhere, their calculations went awry. Two world wars have brought the income tax through adolescence to far more maturity than most people think It ought to have at 46 years of age. Rates now run from a low of 20 to a high of 01ro of income, Corporate rates stand at 52. There are, to be sure, compensating factors. Fer capi-to capi-to Income has risen about five times its 1913 level. But per capital tax payments have increased over1 427 The tax bite per person has risen from 82 cents to some $352. Although everyone carries a portion of the tax burden, bur-den, few know how their tax dollars are apportioned. Where does the money go? A taxpayer who will send $500 in income tax on to Washington this year will find $297.50 earmarked for defense de-fense and other military expenditures. A whopping $52.50 will go toward paying interest on the Federal debt money that is "down the drain" in that it will buy no new government govern-ment services or even pay for current ones. Veterans benefits will claim $33. Needy persons, hospital hos-pital construction, school lunches and other public welfare wel-fare projects wi'l require a $27 share. Foreign aid, libraries in foreign countries, the Voice of America and sundry international commissions and agencies will need $14. Modernization of the coast guard, aid to community housing developments, civil defense and disaster programs together with various interstate commission com-mission activities will need $14.50. Farm price supports, the soil bank and rural electrification electrifi-cation projects will demand $39. Conservation of natural resources including national parks and pubile power will require $11 while another $11 will go to the general administration admin-istration of the government, primarily personnel costs, record rec-ord keeping and support of U. S. territories and possessions. On the tax birthday, taxpayers might well reflect that In 1913 people did locally what they wanted done. Today, they give their money to the Federal government and fight among themselves to see who can get the most back. |