he psychological principles of
choice, of value, and of diminishing gratification. Finally, there is
a widespread approval of the progressive rate just because it in so
far acts as a leveling influence upon fortunes. The "additional" tax
is already important fiscally, yielding over one-half of the total
paid by individuals and one-fourth of the total from corporations and
individuals.

The income tax returns for the first ten months of the law (March to
December, 1913) showed 356,598 taxable individual incomes, equal to
about 1 per cent of the taxable population (considering minors to be
usually not taxable). Even this proportion, small as it is, is much
larger than that of the European countries having a general income
tax.

The first ten months' yield (March 1, 1913, to December 31, 1913) was
over $60,000,000. A remarkable fact is that 21 per cent of all taxable
incomes (not persons) were in the single Borough of Manhattan (the
main part of New York City). The receipts from the income tax in
1913 were nearly 10 per cent of the ordinary receipts of the federal
government, and about 2 per cent of total revenue receipts of all
branches of government, the income taxes paid by individuals being
about 1 per cent of the same total, and the super-tax about 1/2 per
cent of the same.

The receipts from the income tax during the fiscal year ending
June 30, 1915, were $80,000,000, of which $39,000,000 was paid by
corporations and $41,000,000 by individuals. Of the latter sum, over
$24,000,000 was from the super-tax.

Sec. 10. #A system of taxation.# The task of reforming and developing the
various kinds of taxes and of uniting them into a just and consistent
plan for each of the divisions of government in the United States is
a vast and difficult one. There are many conflicting interests among
states, between states and nation, among the various minor political
divisions, and among individuals and classes. There are also
conflicting opinions regarding many features of the possible practical
plans. Because of these it is safe to predict that progress will not
be made quickly, steadily, nor always directed toward a clear ideal.
If progress is to be rapid, the public must, however, have consistent
principles by which its steps may be guided. In the foregoing kinds of
taxation are the various elements which may be united into a system of
taxation. It is useful to consider how this might be done.

At the basis of the whole tax