Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-12-01
DIRECT TAXATION
URGED BY BAILEY
Pennst iVania congressman Wants PEG.
pie FaForing Preparedness to
hnoH What They Get.

Washington. Dec. Representative
, Warren Worth Bailey Of Pennsylvania
takes the ground that II We must have
preparedness" it ought to be paid for
by a direct tax, so that the people
would know when they are paying for
ii and how much.
Under onr present indirect meth
DDS he said today, the people paw
without knowing II, In proportion TO
MS income. the hod carrier pays 10
o00 times as much toward the support
of army and navy as a Rockefeller or
a Morgan. This isn't right It is an
outrage against which I for one pro-
test"
The income tax, as far as It goes,
is meritorious in that ii is direct and
cannot be shifted But the income tax
is largely tax on conscience and it
is eTaded by the tricky and dishonest.
The proposed inheritance tax Ia also
direct, but it doesn't reach to the tap
root Of the evil it is intended to check.
! In effect 1t says to a man that he may
get rich in any way he can and no
questions asked, but when he quits
this little life il will be to leave his
fortune to be shared by the country In
the form Of an inheritance tax. If
this isn't a denial Of the right Of prop
erty. what would you call II?
! Now, / expect to propose a plan to
( meet the exaggerated and staggering
burden of militarisn1 which our lingo
| friends insist that congress shall i'm
( pose upon the country that will not be
open to the objections which lie
against both the income tax and the
inheritance tax. This plan somewhat
resembles that put across by Lloyd
George in England in the great budget
which so outraged British landlerdism.
We have had direct taxes in this eoun-
try apportioned among the states on
! the basis of population, as the cousti-
tuition provides. Well, have prepared
a bill along the lines Of previous en-
actments providing for direct taxation.
my proposal differing from these only
7 In the particular that its provisions
will apply only to land values, while
former laws imposed direct tax on
general property values
cat first blush critics viii assail
this proposition on the ground that a
tax on land values will fall chiefly on
! farmers, but this is not so. A tax on
land values will fall chiefly on great
centers OF population, for It is in the
cities that these values are found. The
land values of New York, Chicago,
( Philadelphia. St Louis, Baltimore, San
/ Francisco, Buffalo Boston, New Or
leans. Denver, ST Paul. Detroit Gal
weston. Atlanta. Cincinnati, Gle ,-aland
! Kansas City and the OTHER principal
cities of the country Far exceed those
found outside their borders, so that
I the money for preparedness would
come from those who are most vehem-
emily supporting the lingo program.
Mr.. Bailey declared his belief in this
form of direct tax in strong terms.
Unlike our tariff and excise taxes,
he added, this tax on land values viii
encourage industry. will tend to free
opportunities for labor and capital
: will promote every manner OF improve
ment. will stimulate invention will
+ destroy monopolistic control of nat
ural resources, drive out the dog in
t the manger and impart to civilization a
! quickening such rs il has not had since
Columbus opened up new world. And
/ 1t would be a long step toward uni
versal peace, for it would dampen the
ardor of those patriots for profit who
fatten on war contracts. the money
for which now comes. unknown to
them, cut of the hard earnings of the
great body Of the American people
who are unprivileg2d and who do the
fighting as we'll as the paying when
war comes"
The Pennsylvania said he believed
his bill would find organized support
| throughout the country and not lit
/ tie favor in congress. A somewhat
similar proposition was supported by
over Is per cent of the voters In Mis-
souri, when il came up before them q
few years ago.