AMERICAN MONEY

Otago Daily Times, Issue 21386, 14 July 1931, Page 10

AMERICAN MONEY

INDIVIDUAL AND COMPANY WEALTH. Any man with an income of one million dollars a year is considered to be worth, on a 5 per cent, basis, at least 20,000,000 dollars. In 1920, 504 individuals reported incomes of 1,000,000 dollars or more. This was almost the same number as in the preceding year—sll being in the “ big ” class as against 496 in 1927. Upon the same basis of figuring, a millionaire is one who has an income of 50,000 dollars a year or more. On that basis, the United States had 38,650 millionaires in 1929. Over 4,000,000 Americans filed retuims in 1929, aggregating the net income of a little more than 24,500,000,000 dollars. This was an increase over 1928 of 2.12 per cent, in the number filing returns, and 0.62 per cent in total net income.

Of the 991,000,000 dollars paid in 1929 by individuals for income tax purposes, the 504 millionaires having incomes of one million dollars and over paid 18.78 per cent, of the total. This is the largest paying class. The 23,949 persons with incomes of from 50,000 dollars to XPO.OOO dollars a year, .were next, paying 16.15 per cent of the total. The 5268 persons that had incomes from 150.000 to 300,000 dollars a year paid 15.94 per cent, of the total; those 63,404 who had incomes from 25,000 to 50,000 dollars paid 11.44 per cent, of the total. They were followed by the 667 persons who had an income from 500,000 dollars to 1,000,000 dollars. They paid 10.02 per cent. Of the 4,034,702 individuals who filed returns. 3,065,701 who had incomes under 5000 dollars paid but 0.45 per cent, of ihe total; while the next largest class numerically, the 597,247 who had incomes from 5000 to 10,000 dollars, paid out .92 per cent, of the total. The income tax is paid by those best able to pay. “Ability to pay” is the basis of the tax, and ns such it is as fair as can be devised. • Corporations, too, showed an increase in 1929 over 1928, in spite of the stock market smash. There were 226 corporations each of which had net income of 5,000,000 dollars and over.