The Chesterfield advertiser. [volume] (Chesterfield C.H., S.C.) 1884-1978, 1917-06-14

uahus -oI the nnaI consumer rather
than upon the articles which serve pri.
msrily as raw material for further
production.
(4) Taxes upon business should be
imposed us far as possible upon net
earnings rather than upon gross re-
ceipts or capital invested.
(0) Taxes upon income which win
necessarily be severe should be both
differentiated and graduated. That IA.
there should be a distinction between
earned and unearned incomes and there
should be a higher rate upon the. larger
incomes. 1t is essential, however, not
to make the income rate so excessive
as to lead to evasion, administrative
difficulties, or to the more Fundamental
objections which have been urged
above.
CO. The excess profits which are due
to the war constitute the most obvious
and reasonable source Of revenue dur.
Ing war times But the principle upon
which these war-profit taxes are laid (
must be equitable In theory and easily
calcuable I'm practice.
The Proposed Income Tax.
The additional income tax as passed
by the House runs up to a rate Of 60
per cent. This is a sum unheard Of In
the history of civilized society. It 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 42h
per cent.
1t could easily be shown that q tax
with rates on moderate incomes sub
stantially less than in Great Britain,
and Oh the larger incomes about as
high, would yield only. slightly less than
the $532 100000 originally estimated In
the House bill.
1t Is to be hoped that the Senate will
reduce the total rate on the highest In
comes to 81 per cent, or at most to 40
per cent, and that Mt the same time It
will reduce the rate on the smaller insT-
comes derived from personal or prefes-
Sional earnings.
IF the war continues we shall have to
depend moro and moro upon the In
come tax. by imposing excessive rates
now we are not only endangerins the
:
difficulties which even Great Britain
has been able to escape.
Conclusion.
Tho House bill contains other funda-
mental defects which may be summed
up rs follows:
u 1t pursues an erroneous principle
I'm imposing retroactive taxes.
(2) 1t selects an unjust and unwork-
able criterion for the excess-profits tax.
(3 1t proceeds to an unheard-of
height In the income tax.
CD 1t imposes unwarranted burdens
upon the consumption Of the commu-
nifty.
% 1t Is calculated to throw business
into confusion by lcvying taxes on gross
receipts instead Of upon commodities.
90 1t fails to make n proper use Of
stamp taxes.
C0 1t follows an unscientiic system
in its fat rate on imports.
(9 1t includes n multiplicity Of pet.
ty and unlucrative taxes, the vexatious-
ness Of which is ont OF all proportion to
the revenue they produce.
The fundamental lines on which the
House bill should be modified are sum.
med up herewith:
D The amount OF new taxation
should be limited to $3.50, 600 O,OOO-Or
at the outset to 81 800. 100000 To do
more than this would be as unwise as
1t is unnecessary. To do even this
would be to do more than has ever
been done by any civilized Govern
mcnt in time OF stress.
CO The cXccSs-protts tax based upon
4 sound system ought to yield about
| $5OOOOO.GOO.
CD The mcOmc-taX schedule ought to
be revised with n 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 81 per cent. A careful cal
culatiOn shows that an income tax Of
| this kind would yield some $780, ,0O0,-
OGO additional.
a The tax on whisky and tobacco
ought to remain approximately as 1t Is,
with II Yield Of about $3.50, 100000.
These three taxes, together with the
stamp tax AZ Wcn the low rate Of the
House bill, and with an improved au-
| tomobilc tax, will yield over 81 ,250,-
| 600 ,G0O. which is the amount Of money
thought desirable
The above program would he In har-
mony with an approved scientific sys-
| tenn. 1t will do away with almost all
| Of the complaints that are being urged
| against the present. 1t win refrain
| from taxing the consumption of the
poor
1t will throw a far heavier burden
upon the rich. but will not go to the
| extremes of confscation. 1t will OBJ
| viatc Interference with business and
will keep unimpaircd the social pro-
| ductivity OF the community.
| 1t will establish n just balance be-
( tween loans and taxes and will not
! succumb To the danger Of approaching
! either the tax-only policy or the loan
| only policy. Above all 1t will keep
[ an undiSturbed elastic margin, which
must be more and more heavily dra wn