Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1915-01-02

IlhNAE OANI ~ 80
federal income tax, for which only
s57,59S returns were received last
year, is reaching directly less than
one.half Of one per cent OF the popu-
lation, promotes class conflict and
public extravagance, and Is a feeble
instrument with which to reduce
swollen fortunes. in the opinion of I.
S. Adams, member of the Wisconsin
State Tax commission in an address
here before the American Economic
association. Mr. Adams spoke on
"rhe Effect of Income and Inherit
ance Taxes on the Distribution of
Wealth"
THE present federal income tax
is a class tax and class taxes breed
extravaganza" he said ut deserves
approval from almost every other
standpoint, but in this respect 1t
needs courageous correction. Income
taxes should not be levied upon the
poor-but they should be levied upon
all the rich, /. e., upon everyone with
income exceeding the amount re-
quired by the American standard of
living. An income tax falling on all
the rich, 80 defined, would be the
most potent instrument procurable
for inspiring and maintaining an ef-
fective interest In the conduct OF gov
eminent.
IF swollen fortunes are bad, they
should be attacked directly and the
cause removed To let them accumu-
late and then tax them 10 per cent
smacks of hypocrisy, and the attempt
to make the income tax do the work
Of social reform Is apt to spoil the
income tax. Its virtues are fiscal.
In my opinion the income tax could
perform it's best service as substi-
tute for the personal property tax as
applied to business enterprise. The
loss in modern business is enormous,
the necessards are great, and a
strikingly large proportion of con-
Germs in some lines constantly totter
on the brink OF bankruptcy To all
such marginal enterprises the prop
erty tax is remorseless. 1t falls on
property as much whether 1t is pro
ductive or ufproductiye, whether II
Ii owned free or heavily encountered,
whether it is a part of a Trustworthy
but desperate new. business venture
or part OF the salvage of dying con
Germ. The property tax discourases
experiment, penalties industrial pho
neerlng, retards production. reduces
supply and increases prices. In
short, II Is partly shifted to consum
ers, reduces the amount Of wealth
to be divided and adversely affects
the distribution of what is produced
In comparison the income tax wresti
little or nothing from the new, th'
experimental or the unfortunate bust
ness enterprise; II helps not only tn
small business man, but large con
Germs in new and hazardous under
takings. 1t helps-or abstains fron
burdening -every business enterpris
in bad year.
'The property tax puts the stat
In the position of preferred cree
itor and harsh one. Its dues mus
be paid by the business man In tn
development period of the business
before. profits are earned, and late
whether profits are earned or no
The income tax. however, present
the state in the attitude of partn'
or proflt-sharer. The first attitude
not wholly indefensible. nor altoget
er unfortunate. But with respect
business enterprise 1t needs to
softened by increasing emphasis up'
ability to pay There is a grown
feeling among the operators al
owners of public utilities that GO
eminent ownership is inevitable. Til
feeling or movement Is measurab
stimulated by the rigors of the pre-
erty tax. The railroads OF tails COT
try. for instance, are at present ps
ing over IS per cent Of their n
earnings in taxes. and in some stat
the proportion exceeds 20 per ce
II our tax system gave greater SEQ
10 the net income principle, 1t wo'
materially enhance the chances
private ownership and operation. I
income tax works for the retention
private management: Il makes