The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1917-06-15

Individual TO snare IN the sacrifices ac-
cording to his ability ,to pay and &C
cording to his SHIRE in the Government
I ~ Taxes on consumption, which are
necessarily borne by the community at
large, should be imposed as far as pos
( sible on articles Of quasi-luxury rather
than on these Of necessity.
80 Excuses should be imposed as far
as possible upon commodities in the
hands of the final consumer rather
than upon the articles which serve pri-
\ marily as raw material for further
production.
! "a Taxes upon business should be
} imposed as far as possible upon net
earnings rather than upon gross re-
ceipts or capital invested,
! o. Taxes upon income which will
j necessarily be severe should be both
1 differentiated and graduated That is
there should be a distinction between
earned and unearned incomes and there
! should be Q higher rate upon the larger
incomes. 1t is essential, however, not
to make the Income rate so excessive
as to lead to evasion, administrative
F, difficulties, OF TO the more fundamental
objections which have been urged
above.
| Co The excess profits which are due
i to the war constitute the most obvious
and reasonable source Of revenue dur
ing war times But the principle upon
which these war-proft taxes are laid
must be equitable in theory and easily
calculable in practice ,..-.rs. I'LL.
The Proposed income Tax.
The additional income tax as passed
| by the House runs up to rate of 60
! per cent. This is sum unheard of In
the history Of civilized society. 1t must
be remembered that It was only after
the first year of the war that Great
Britain increased her income tax to the
maximum of "a per cent, and that
even now in the fourth year Of the war
the income tax does not exceed 421a
/ per cent
, 1t could easily be shown that tax
, with rates on moderate incomes sub
stantially less than In Great Britain,
and on the larger incomes about as
high, would yield only slightly less than
| the $3.50, 100000 originally estimated In
the House bill.
1t is to be hoped that the Senate VIII
, reduce the total rate on the highest In
comes to "a per cent, or at most to 40
per cent, and that at the same time II
will reduce the rate on the smaller in
comes derived from personal or profess
sional earnings
II the war continuco we shall have Go
depend more and more upon the in
come tax. BY imposing excessive rates
now we are not only endanserins the
future, but are inviting all manner Of
difficulties which even Great Britain
has been able to escape.
Conclusion
The House bill contains other funda-
mental defects which may be summed
up as follows;
.(1) 1t pursues an erroneous principle
in imposing retroactive taxes
(2) 1t selects an unjust and unwork-
able criterion for the excess-profts tax.
(3) 1t proceeds to an unheard-of
height In the income tax.
a. 1t imposes unwarranted burdens
upon the consumption Of the commu-
nifty, -->.--.--'s- ,s~.-, --'-v
(5l 1t Is calculated to throw business
into confusion by levying taxes on gross
| receipts instead Of upon commodities
t6) 1t fails to make a proper use of
/ stamp taxes,
% 1t follows an unscientific system
IN its fat rate on imports,
(S) II includes a multiplicity Of pet
ty and unlucrative taxes, the vexatious-
ness Of which is out OF all proportion to
the revenue they produce
The fundamental lines on which the
House BIN should be modified are sum
{ med up herewith:
a. The amount Of new taxation
should be limited 10 81 ,250000,O 0O-or
at the outset TO S1.500,0o0,OO0 To do
more than this would he as unwise as
It Is unnecessary. To do even this
would be to do more than has ever
been done by any civilized Govern
ment 10 time of stress.
C2l The excess-profits tax based upon
u sound system ought to yield about
S500,0O0,O00.
ca The incoIne-tax schedule ought to
be revised with lowering. of the rates
ON earned incomes below $4,000, and
with an analogous lowering of the
rates ON the higher incomes so as not
to exceed "a per cent A careful cal
culation shows that an income Tux of
this kind would yield some S4500oo.-
900 additional.
az The tax ON whisky and tobacco
ought to remain approximately as 1t Is,
with yield of about $3.50. 100000.
These three taxes, together with the
stamp tax at even the low rate of the
House bin and with an improved au-
tomobile Tux, viii yield over $3.50
100000, which Is the amount Of money
thought desirable '-,s-- -'>-ass'-tf
The above program would be IN bar
mouy with an approved scientific sys-
tenn. i win do away with almost all
Of the complaints that are being urged
against the present 1t will refrain
from taxing the consumption Of the