Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-01-08
TAXATION TALK.

! A!.hc dealing with many matters of
large Importance. the portion Of Presi-
dent Wilson's address that Is coming
In for the keenest criticism Is the one
making tentative suggestion Of some
new forms of taxation. The criticism
is not confined to the newspapers, but
is voiced freely by the man on the
street It really should be aimed at
Secretary McAdoo rather than the
president. for the latter simply adopt
ed the recommendations of the secre-
tary, both as to the amount of new
revenue required and as to methods
for acquiring it. If the democratic
majority in congress Will heed the up
rising against taxation that must
prove vexatious to the public. it may
save the administration good many
votes In November. No grievance is
nursed more carefully than that Of the
disgruntled taxpayer. In the usual run
of affairs the grudge Is likely to be
cherished until chance comes to take
1t out on somebody.
To the retention Of the duty on
sugar and the extension Of the present
special war taxes there has been vir-
tually no objection. The present war
taxes do not hit many persons on the
at the democratic administration for
coming to the protective idea on sugar,
but they do not question the wisdom
OF the policy They would Jeer more
If the administration should advise a
restoration OF the duty on wool and
the adoption Of some protective duties
on dyes and chemicals. but 1t would
be. good business for the democratic
issdeTS TO approve those esrea!eas:.
There is not little complaint about
the plan 70 reduce the straight income
tax exemption to $4,000 and $4,000 for
sin gle and married persons The pro-
posed exemption reduction would make
this tax q large number of salaried
workers in the cities who are now ex-
empt 1t Is pointed ont that from this
class the loudest complaint has come
about the high cost of living. and 1t Is
assumed that resentment OF new
direct tax would he widespread. In
variably comment about lowering the
exemption Is accompanied by sugges-
ton that II would be all right to in
crease the surtax on the larger in
comes.
The great volume of criticism how
ever. is hurled at the special internal
revenue taxes suggested by President |
Wilson and Secretary McAdoo. These
include a tax Of ! cent per gallon on !
gasolene. tax OF so cents per horse |
power on automobiles and internal ex-
plnsicn engines. stamp tax on bank !
checks and q tax OF IS cents per ton
on pig iron. as we'll as on manufac-
tured steel. The tax on gasolene, mo-
tor vehicles and internal explosion en-
gines was offered to the Sfxty-thfrd
t. - I'll SfHt
earlier war taxes We're imposed. 1t
was rejected because of the conviction
that it would be one OF the most un-
popular taxes imposed in this country
since the British tax on tea. Obviously
it would hit all classes Of people, most
OF whom are now doing more or less
worrying about the rising prices OF
gasolene and the high cost Of repairs.
II is n tax Of which the payers would
be reminded every day in the year.
The engine tax on top of the gasolene
tax would be sure to stir the farmers
ire. The check tax during the Span
ish- Amertcan war proved nuisance
and a constant reminder to business
people that they were regarded as
easy victims whenever new rev.
enue emergency arises.
While there is good deal OF unaim-
ity as to the unpopularity Of the pro-
posed direct taxes, there Is no such
unanimity in suggesting better meas
ures for raising revenue. A recent
proposal Is that a special tax shall be
levied on munitions Of war. on the
theory that eventually 1t must be paid
by the belligerents whose militancy is
now forcing US into preparations for
war. Resort to a federal inheritance
tax In urged in some quarters. In
others It Is set forth that the logical
method Of raising the straight income
tax and the surtax without reducing
the exemptions.
As It il proposed to raise only lit
tie more than s1oo.ooo.ooo by new
methods Of taxation. It would seem
that a plan might be worked out that
would not be oppressive in any quar-
ter and that need not be source OF
constant irritation to the taxpayers.