Business & Finance: 1928 Incomes

More significant than any corporate earnings statement, more significant than any statistics yet prepared on 1929, was a figure-redundant report issued last week by the Bureau of Internal Revenue, covering in great detail the taxable income of U. S. citizens and corporations during the prosperous year of 1928.

Rich Men. In 1927, eleven people had incomes of $5,000,000 or over. In 1928, 13 others joined this select group. Million-dollar incomes increased from 290 to 496. While not all millionaires necessarily have a millionaire’s income, and some people with millionaires’ incomes often fall far short of the seven magic figures in actual wealth, during 1928 exactly 42,613 people reported incomes of $50,000 ($1,000,000 @ 5%). In 1927 there had been only 33,695 in this class. Not only rich men grew in number, as the following table of total people reporting shows:

Income Classes 1927 1928* $3,000 under $5,000 1,209,345 3,114,489 $5,000 under $10,000 567,700 561,114 $10,000 under $25,000 252,079 265,438 $25,000 under $50,000 60,123 67,300 $50,000 under $100,000 22,573 26,838 $100,000 under $150,000 5.261 6,988 $150,000 under $300,000 3,873 5,605 $300,000 under $500,000 1,141 1,720 $500,000 under $1,000,000 557 971 $1,000,000 and over 290 496

Quick Profits. Throughout 1928 the stock market showed a continual trend upward. In incomes of under $25,000, 15% of the profits were from assets held less than two years, probably indicating the extent of profitable speculation. In the groups of higher incomes 10.3% was from this same source, against 6.92% the year before.

Aggregate, average. The aggregate net income of individuals was $24,625,488,175, up 9.09% from 1927. Incomes were reported by 4,050,959 persons, of whom 2,434,640 paid taxes. The average netincome was $6,078.93.

Where from? Sources of income were estimated as follows:

Distribution Amount Per Cent

Wages and salaries $10,263,317,251 36.01 Business 3,288,963,184 11.54 Partnership 1,940,274,581 6.81 Profit from sale of real estate, stocks, bonds, etc., other than capital net gain from sale of assets held more than two years 2,943,173,181 10.33 Capital net gain from sale of assets held more than two years 1,843,339,590 6.47 Total 20,279,067,787 71.16 Rents and royalties 1,274,900,549 4.47 Interest and investment income 2,061,471,008 7.23 Interest on government obligations not wholly exempt from tax 40,364,568 .14 Dividends on stock of domestic corporations 4,403,153,965 15.45 Fiduciary 440,551,417 1.55 Total 8,220,441,507 28.84 Total income 28,499,509,294 100.00 General deductions 3,874,021,119 13.59 Net income 24,625,488,175 86.41

Companies. Corporate gross incomes came to $113,123,180,222 against $102,816,264,031 in 1927 This was distributed as follows :

Income Class Number of Returns

Return showing net income under $3,000 135,013 $3,000 to $100,000 112,259 $100,000 to $500,000 7,929 $500,000 to $1,000,000 1,195 $1,000,000 under $5,000,000 921 $5,000,000 and over 201 Total showing net income 257,521 Total Inactive showing no net income 167,258 Inactive corporations—no income data reported 48,574 Total 473,353

* Filed to Aug. 31, 1929.