Bisbee daily review., 1915-10-22
TAXING WAR PROFITS.


Nothing better illustrates the unique economic ad
thrust upon the United states by the world war
than the item Of order profits Not only have heso
here in maximum profusion, but the profits them
selves absolutely clear and fully cacuabe in stock
equities Any burdens of federal taxation be.
of indirect war are nhntesimal to such
security holders, and will be vastly outweghed by the
further profits to flow to many war order companies
from our increased army and navy program.
The contrast lies in the war order" business within
the begerent countries There the war-suppy industry
either has been taken over bodily by government or is
subjeec extraordinary evies in taxation pressure
for loan subscriptions England George now has
nearly 500 concerns under his managerial thumb and in
France there is similar governmental oversight Will,
in Germany every of industrial plant has been con
verled into Notwithstanding under imperial auspices
And the loans lists in Germany are invariably head
ed by the Krupps. All of which means in such a con
trast. that this is their war not
The real novelty in Engands new budget apuy Illus
traes the point Onehaf war profits above the aver
Of the three years preceding hostes must be pac
into the public treasury Until the end Of the fiscal year
March 81 next this is expected to yield a minimum
S3OoCoO0Q and in the following twelve,month $4,000,
OOO there is no converse of course to this taH
seizure of "uneamed Increment in the way of compen
satng many industries for the "undeserved excrement
Of war deficits.
Yet there has been no opposition In the many letter.
in British fashion, 10 the press on the subject
there has been practically universal acceptance of tn,
principle rather general point of view is that taken
by the chairman OF the Steel Co. Of Scotland who de
cared SIT may be- indeed that before the war is ended
the government may find it necessary to take not 5OE
but 1907 of these profits and if they do / hop,
none Of viii complain. There are hundreds Of thou
sands of others who making infinitely greater sacr
fee than is possible to us"
AS a matter Of fact the general feeling in England i
that the chancellor let the taxpayer off lightly in
beIated levy. despite the that taxes on large in
lifted from one-fourth to one-third with
threat Of onehaD, imposs on necessities are il
creased, and sundry imports newly taxed The adde
of $55OOOOOOO year following S325 10000
imposed last November by Loyd-George-wiu not niue
than take OF deficit service and expected per
sions. Germany, however it is to be noted is waivn
an such efforts current meeting Of war costs.
Total British current revenue in 1867 will be onl
OOOOOO-though nearly double the peace total
while expenditure viii reach s9I25OOOOOO leaving 81
2ooOOoOOo be net by loans following IKE deacienc
tnue big and British war-supply companies may we
continue willing contributors
It win be interesting chapter in tax incidenc
to now this tax contribution works There,
here increasing costs of labor and material anectir
calculations. one Of the largest British coal and in,
companies finds that its proportion Of wages to prc
rose about 19a in 1914. War profits in England it
cares, have been popularity much exaggerated
Likewise there many thomy technical points n
tax viii be difficult compute and collect It will apr
to almost every sort Of profit, with little regard TO
source example gold and rubber companies operat
abroad are TO be subject Peculiar hardship may
on new companies those which had just reached Q
dividend after years Of development from eamin
Exact justice would require very intelligent levy in
way OF dncrenusting cases according TO merits
The only genuine velvet in "var orders" is America
BOX CAR TRAVEL.