New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-09
ADVOCATES MORE
TAX ON INCOMES
immigration Commission
err Howe Would Boost
Inheritance Tax.
OPPOSED TO TARIFF
AS DEFICIT REMEDY
Saws United States Unjustly Lays
Heaviest Revenue Burden
on Poor.

Washington, Oct. s.-0pposlng the
sale Of government bonds or the raising
Of tariff duties to meet any deficit IN
the Treasury growing out Of the re-
neal of the duty on sugar and of any
Increased expenditures for military
preperedness, Frederic c. Howe. Com.
missioner Of immigration at the fort
Of New York, went on record to-day as
fevoring an increase in income taxes
and the imposition Of an inheritance
tax.
"Some apprehension" said Mr.. Howe,
"is felt that the reduction IN customs
receipts due to the repeal OF the duty
on sugar. together with the increased
expenditures demanded for military
preparedness. will create deficit. II
any substantial Appropriation IS maze
for military preparedness such de-
ficiency would surely arise, while the
repeal of the duty on sugar VIII cause
a loss in revenue Of approximately
$4,000 900 year
MIR. Howe declared that TINS dehcit
should not be made up by the sale OF
government bonds, but by taxation.
This increased tax revenue. de-
clared the Commissioner, "can be OBJ
tanned only from two general kinds OK
taxes-taxes that are direct and fall
upon property, incomes and inherit
ances. and taxes that are indirect In
their incidence and fall upon consvmp-
ton through the increased cost OF the
articles taxed
He Howe asserted that he favored
the direct taxes that fall on the rich
and the well-to-do.
Consumption Taxes Unfair.
Consumption taxes are poor mems
tsxes-hunger taxes" the Commls-
sioner added "They are unfair in their
incidence, because they are, IN erect,
exaggerated poll taxes. They yield q
substantial revenue only when imposed
upon articles of universal use.
Mr.. Howe pointed out that the Unit,
ed States not only collects almost all
of its revenue from the indirect taxa
ton on consumption, but that II col
lects higher per capita taxes from THESE
sources than do other countries.
"Only a significant part OF the cost
OF the government" continued the
Commissioner, sis borne by incomes
and inheritances, while wealth, as such'
is not taxed at all"
The United States could collect any
where from s50,000,000 TO s1O0,0O0,0OO
a year through the imposition of an in
heritance tax, in the view OF the Com
missioner, who declared that 80 per
cent Of the $4,000 900, 900 that changed
hands through death every year could
be taxed without serious burden to the
benefciaries.
Certain inheritances in excess OF
81 100000 could easily bear burden Of
5 per cent" said the Commissioner,
"and no real injustice would be done If
the tax were as high as 10 per cent.
Heaviest Burden on Poor.
"An additional s50,000.000 or $780,
10000 could be realized from an in
crease in the tax upon incomes, includ-
ing the surtax. The income tax in
Great Britain has in recent years been
raised TO 50 per cent upon very large
incomes. From these combined sources
from $l00,000,000 TO S200,000,000 could
easily be added to our Federal reve-
nues. which would more than meet any
possible deficits and would tend to
balance more equally the burdens of
taxation. which for sixty years have
borne most heavily on the poor"
Commissioner Howe charged that the
burdens Of taxation in the United
States are divided more uniustly than
in the other great countries.