Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1916-02-10
Uncle Sans Income
BY FREDERIC J. HASKIN

postponing the payment OF the bill,
1t is good national business to issue
bonds In order to build Panama
canal, because the Panama canal may
in time pay the money to redeem the
issue. But it is obviously not good
national business to issue bonds for
current expenses. The principle is
exactly the same as the one you fol.
low in your own individual business.
You do not hesitate to borrow money
to open a cigar stand or build d new
factory, because you count on getting
your money back. But when you bor-
row money to pay the rent or buy a
suit of clothes you are going in the
hole"
A second method by which revenue
may be raised is the tariff. We may
charge a higher customs duty on all
goods imported from foreign coun-
tries. At glance it would seem that
by raising the tariff we could make
foreign nations pay our bills. but this,
Of course. is fallacy. The higher
the tariff the higher will be the price
at home of the commodities upon
which it is levied. So the ultimate
consumer pays the bill just the same.
The third source of government
funds is internal revenue. This in
cludes the income tax, the corpora
ton tax and the taxes upon spirituous
and malt liquors. tobacco, oleomargar'
inc and various other commodities,
most of which are classed as luXur-
les. Obviously, the government may
increase this source of revenue almost
indefinitely by taxing new commodi
ties. The so-called war tax, which
congress extended for another year
when it met in December, was of this
sort.
The direct tax is in many ways the
most efficient and economical, and 1t
is also the most unpopular. The
American people are peculiarly averse
to direct taxation They have been
spoiled like an only child by both of
the great political parties. BY bond
issues and customs duties, the gov
eminent funds have always been rails
ed indirectly. The method costs
more. but it is not so evident. 1t is a
sort of financial painless dentistry.
Of course, whether you favor levy
ing an internal revenue tax or raising
the tariff may depend upon your poll.
tics. The democrats want to leave
their tariff pretty much as it is and
levy taxes on automobiles and cham
payne and things like that. Some ce.
publicans assert that the tariff is all
a mistake and ought to be raised any
way. .. .-..-
Fundamentally, of course, this is
the ancient quarrel between the HAYES
and Haven'ts which is really the basis
of all politics. If the tariff on staples
is raised, the revenue thus poured into
the treasury, and incidentally the cof'
fers of American industry, will come
from literally every pocket in the
United States. If the additional reve.
nue. is raised by taxing automobiles
or increasing the yield Of the income
tax. those who have money will bear
most of the burden.
1t is possible, however, to take
broader view of the question than
that dictated by self interest. Pro
lessor Seligman of Columbia univer.
sity says that the growing tendency
in American taxation is to give more
and more consideration to the econ
omic good of the country as whole,
and less to the individual and the
class. This is certainly the spirit
which should prevail in the present
emergency. The American people
have spoken pretty plainly for the ar.
mament that will make their nation
a factor In world affairs. The common
sense and fairness with which they
meet the question of how to raise the
money will be the test of their patri.