851.512/48
The Secretary of State to the Chargé in France (Whitehouse)
Sir: The Department has received your despatch No. 4502 of October 17, 1924, inviting attention to Article 44 of the French Law of March 22, 1924, which states that the reductions in taxes and other charges provided for the benefit of large families will only be granted to aliens who are citizens of countries which possess treaties of reciprocity with France. You state that the only provision that you have been able to find in the treaty relations between the United States and [Page 128] France which might have a bearing on this question is Article XI of the Convention of Peace, Commerce and Navigation of 1800. You request the Department’s instructions in the matter.
The Treaty of 1800 with France is no longer in force, having expired by its own limitations on July 31, 1809. (Malloy Treaties, Volume I, page 496.) There appears to be no treaty provision in force between the two countries at the present time bearing on the matter under consideration.
Attention may, however, be invited to the fact that under the Revenue Act of 1924,16 aliens resident in the United States are assessed income taxes at the same rate as American citizens. The Act furthermore allows credits in the payment of income taxes to married persons and the heads of families, and for minor children and other dependents. These credits are allowed resident aliens as well as American citizens.
Section 210 (a) of the Revenue Act of 1924, provides that
[“] …17 there shall be levied, collected, and paid for each taxable year upon the net income of every individual …17 a normal tax of 6 per centum of the amount of the net income in excess of the credits provided in section 216, except that in the case of a citizen or resident of the United States the rate upon the first $4,000 of such excess amount shall be 2 per centum, and upon the next $4,000 of such excess amount shall be 4 per centum;”
Section 216 of the Act provides in part as follows:
“For the purpose of the normal tax only there shall be allowed the following credits:18
. . . . . . . . . . . . . .
- “(c) In the case of a single person, a personal exemption of $1,000; or in the case of the head of a family or a married person living with husband or wife, a personal exemption of $2,500. A husband and wife living together shall receive but one personal exemption. The amount of such personal exemption shall be $2,500. If such husband and wife make separate returns, the personal exemption may be taken by either or divided between them.
- “(d) $400 for each person (other than husband or wife) dependent upon and receiving his chief support from the taxpayer if such dependent person is under eighteen years of age or is incapable of self-support because mentally or physically defective.
- “(e) In the case of a nonresident alien individual …17 the personal exemption shall be only $1,000. The credit provided in subdivision (d) shall not be allowed in the case of a nonresident alien individual unless he is a resident of a contiguous country, …17”
It will be observed that under these provisions of the Revenue Act of 1924, a citizen of the United States or an alien residing in the United States who is the head of a family or a married person living with husband or wife, is granted a personal exemption of $2,500 in addition to an exemption of $400 for each person other than husband or wife dependent upon and receiving his chief support from the taxpayer, if such dependent person is under eighteen years of age or is incapable of self-support because mentally or physically defective. You will accordingly express the hope that American citizens residing in France will be assessed income taxes at the same rate as citizens of France, and that those who are married or are the heads of families or who have minor children or other dependents will be allowed the same credits in the payment of French income taxes as are allowed French citizens under similar circumstances.
You will submit a report to the Department regarding the matter.
I am [etc.]