The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1914-12-30
INCOME TAX IS
FEEBLE METHOD.
Has Proven Failure in Attempt
10 Reduce the Americans
SWOSIen Fortunes.
WISCONSIN TAX MAN TALKS

Princeton, ~ j., Dec 80. The fed.
erul Income tax, for which only 3JI.-
oSS returns were received .ast year, h
reaching directly less than one half Of
one per cent Of the population, pro
notes close conflict aud public e1
tfaYagHnce aud Is Il feeble instrument
with which to reduce swollen fortunes
IN the opinion Of T. 5. Adams, mem
her Of the Wisconsin state tax com
mission In al address here before the
American Economic association here
MI Adams spoke on The effect Of
Income aud inheritance taxes ON the
distribution uf wealth
"rhe present Income tax h class
tux and cus~ taxes breed eItraya-
gance,' hc said 1t deserves approx
al from almost every other stand
point, but IN this respect II needs
courageous correction Income taNes
should not be- levied upon the poor
but they should be- levied upon all
tho rich, |. O., upon everyone with IN.
come exceeding the amount required
/ by the American standard uf living.
An income tax falling on all the rich,
so defined, would be the most potent
instrument procurable for inspiring
and maintaining an effective interest
In the conduct Of government
Should RemOve Cause,
II swollen fortunes are bad they
should be- attacked directly aud the
cnuse removed TO let them uccumu-
late and then tax them 10 percent.
smacks Of Hypocrisy, and the attempt
to make the income tax do the work
Of social reform is apt to spoil the in
come tax. Its virtues are fiscal In
my opinion the income tax could per
form its best service Ms substitute
for the personal property tax AZ ap-
piled 10 the business enterprise
The loss In modern business Is enor.
nous, the necessary hazards are great.
and a strikingly large proportion OF
concerns in some lines constantly tot
ter on the brink Of bankruptcy. To
all such marginal enterprises the prop
erty tax Is remOrseless. IL fails on
falls OH property as much whether 1t
is productive OF unprOductiye, whether
II is owned free or heavily cucumber
ed, whether II ls part Of Trustworthy
hut desperate new business venture
or part Of the salvage Of dying con
cernI The property tax discourage
experiment. penalties industrial pion-
eeping, retards production, reduces
supply and increased prices
In short. II II partly shifted to CON
sumers reduces the amount Of wealth
to be- divided and adversely affects
the distribution OF what Is produced.
IN comparison the income tax wreSts
little OF nothing from the new, the
experimental or the unfortunate busi-
ness enterprise II helps not only the
small busines man, but large, con
Germs In new and hazardous under
takings II helps-or abstains from
burdening- business enterprise
In bad year.
State = Pardner.
''The property tax puts the state
in the position OF preferred credi-
tor, and n harsh one. Its dues must
be- paid by the business In the
development period Of the business,
before profits are earned and later
whether profits are earned or not The
income tax, however presents the
state In the attitude OF partner or
profit sharer. The first attitude IL
not wholly indefensible, nor altogether
unfortunate. But with respect to busi
ness enterprise II needs TO be soften
ell by Increased emphasis upon ability
to nay. There IN growing feeling
Cmong the operators and owners
public utilities that government owner
ship is inevitable. This feeling o
movement is messurably stimulates
by the rigors Of the property tar
The railroads OF this country, for In
stance, are at present paying owe
10 per cent OF their net earnings I
{ taxes, and In some states the propoi
. ton exceeds 10 per cent III our Ia
/ system gave greater scope to the ne
: income priciple, II would materiall
' enhance the chances OF private ovne'
= ship and operation. The income tn
p works FOR the retention Of pnvat
0 mans cement, It makes the state not
preferred creditor, aud not the sol
, owner, but full-fledged and sympi