Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1898-10-13

Marshall, Woodbury., N. j.
/. or desire IT, II is source of gratifica-
| ton that the pending amendment re-
duces the limit from 81, 900, as provided
in the law of 1894, down to So, 600.
"Nor should we look with favor upon
progressive graduated income tax
which raises the rate with increasing
amounts of income. Such provision is
no part of a just system of taxation. 1t
must rather rest its excuse on differ
ent plea altogether-namely, the ques-
| tionable policy of checking the individ-
ual accumulation of wealth and leyeling
down the fortunes of the rich by statu-
tory enactments-a subject not now un
der consideration. There would seem to
be, on principle, no stronger reason for
raising the rate of the income tax as
| the income increases than for raising
the rate of the property tax as the prop
erty value increases.
fThe fear of the rich that the power
| to levy an income tax, if confirmed and
secured to congress, would be used to
| confiscate their fortunes is not we'll
| grounded. Among free and educated
| people like ours the sense of justice is
| strong Besides, our daily history shows
that wealth is abundantly able to take
care of itself at the ballot box or else
where in this country.
eff the rich would voluntarily as
sumo their share of public burdens they
| would accomplish much toward coun-
teracting certain vicious tendencies of
| the day Such course in the long
reach of events, would be far wiser than
seeking by legislative or judicial action
to shift those burdens upon shoulders
already weighted down.
Prices Undfsturbed.
sit is we'll worthy of note that tax
on incomes has this striking advantage
over a tax on commodities that are
| bought and sold-namely, it's rate can
be raised or lowered to meet exigenoies
/ of revenue without appreciably disturb
| ing prices. Change ever SO little the rate
| of your tariff or excise tax and immedi
areIy there is nutterlng or prices ln
| the market, business is upset and specu-
| lation becomes rife, with its attendant
evils; but change in the tax rate on
incomes could produce no such result
The pulse of commercial life would beat
on with normal stroke.
"Again, the low cost of collecting an
| income tax in connection with our pres
ent excise system must commend it TO
our favorable consideration. According
| to the highest official authority, the cost
of collecting the income tax in 1865 was
less than 2 per cent, being lower than
the cost of collecting any tax then exist
ing except that on banks, which was
paid directly at the treasury.
Income Tax Desirable.
"There are in the United States con-
| ditions now existing and soon to be in
/ tensified which make properly adjust
ed income tax peculiarly desirable. We
find ourselves at present struggling I'M
der tariff law carrying higher aver
| age rate of duties than any law ever be-
fore enacted. No better proof could be
given that even the chairman of the
committee on ways and means Mr..
| Djngley recognizes that his law of 1897
has about reached the limit of endur-
ance than the fact that he has brought
in the pending bill to raise the war rev.
enue entirely from internal taxes in
stead of increasing or extending tariff
taxes. 1t would certainly have been wiser
and more patriotic to make foreigners
pay q the extra millions than to take
them out of the pockets of our own peo-
| pie. Clearly some insuperable obstacle
| stood in his way.
THE fact is, our manufactures are
fast outgrowing our home markets and
are beginning to feel the burden that
has been long resting on our agricul-
tural exporting industries. Natural ex-
pansion must be repressed unless our
markets can be extended. Our tariff
rates put around us wall more or less
high, which stands as barrier against
foreign trade, for in its last analysis a
tax on imports is a tax on exports.
Lighter tariff burdens in the United |
States will be a commercial necessity in |
the not distant future Even if the
rates remain the same, our revenues
must relatively decrease, because i'm
our home manufacturers supply more |
and more completely our home markets.
But whether this tariff law be right |
or wrong, good or bad, we can only |
hope for gradual changes. Such vast |
special interests have grown up under |
it that moderate tariff duties will no |
doubt continue for generations. In this |
situation it is incumbent upon us to de- |
wise some additional means of raising
revenue. No better companion tax for |
moderate tariff could be devised than
fairly adjusted income tax. The tariff |
rates could remain stationary at reason
able figures, thus insuring as far as prac-
ticable stability of prices, while the in
come rate could be varied to meet de- |
ficiency or surplus without materially |
disturbing prices. Every variation |!
would measure the Willingness or un-
willingness of the well to do people Of |
the country to bear additional burdens
of taxation, and thus we would be in
sured strict scrutiny and wise econo- |
my in public expenditures.
Approved by Experience.
An income tax is not mere dream |
of the abst1actionist and moralist. It |
has been tried It was first established |
in England in 1898. but was repealed |
i'll 1916. After suspension of 26 years,
during which time it received thorough |
economic discussion, it was re-enacted |
in 1912, and with slight variations Of |
form has remained to this day one Of |
the mainstays of the British exchequer. /
This form OF tax exists also in British |
India, in France, in Germany, in Rus
STA, in Austria, in Norway, in Sweden, /
In Switzerland, in Italy, in Spain--in
TACT in almost every nation Of the civ
ilized world.
So that whether we test it by reason
,r by experience We find that the in
l)me tax. properly adjusted, is the near
approach yet made to an ideal tax. =
1az.,4A1 |