Uncle Sam's Income

A preliminary statement on Government revenues for the fiscal year of 1923 (ended June 30) was made public by the Treasury Department. It shows a falling off in Federal revenue as compared with the two years previous. Income in 1921 was $4,595,357,061; in 1922, $3,197,451,083; in 1923, $2,621,745,227. These decreases are due partly to business depression, but in the main to the abolition of various taxes. The schedule as issued (cents not included) was:

1922 1923 Income and profits $2,086,904,069 $1,689,159,917 Estates 139,418,846 126,704,979 Transportation 169,518,727 Telegraph and telephone 29,271,521 30,265,954 Insurace 10,855,403 Beverages 79,113,720 40,484,661 Cigars and tobacco 269,771,109 308,010,533 Admissions and dues 80,000,589 77,316,520 Excise taxes 174,327,832 185,042,234 Special Taxes 91,532,314 91,526,753 Stamp taxes 58,706,964 64,875, 113 Child labor 15,224 8,358,558

Total $3,197,451,083 $2,621,745,227

Facts:

P: Although there was a falling off in the income and profits taxes, the lowering of the income surtax from 63% to 50% maximum has apparently resulted in more revenue, as Secretary Mellon predicted. Income taxes for the quarters ending March 30 and June 30, 1923, were $464,684,211 and $352,966,763 respectively; for corresponding periods in 1922, $395,898,430 and $300,194,987.

P:Four states (New York, Pennsylvania, Illinois, Michigan) paid more than half of the total Federal taxes, $1,315,769,011. P:Taxes on medicinal liquor and manufacturing alcohol fell from $79,000,000 to $40,000,000 from the previous year. P:The increased consumption of cigars was 8%; of cigarettes, 33%; of smoking tobacco, 4%; of snuff, 3%; of playing cards, 21%.

P:The cost of collecting taxes increased from $1.07 per $100 in 1922 to $1.40 per $100 in 1923. (This does not include $8,200,000 expended in enforcing the Volstead Act and $675,000 for the narcotic act.) Commissioner Blair of Internal Revenue attributes the increased cost of tax collection to 1) the decrease in gross revenue and 2) $18,000,000 expended in auditing back income tax returns.