The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1917-04-13

war times certain scientific principles
are definitely esta blished:
How Tasss Should BE AppertlonSd.
a. The burden Of taxes must be
spread as far as possible ever the
whole community 20 as to cause each
indiv dual To share In the sacrifices &C
cordIng to his ability to pay and &C
cording 10 his share in the Government.
~ Taxes on consumption, which are
neceasa rtly borne by the community at
large. should be imposed as far as pos
sible on articles OF quasi-luxury rather
than on those OF necessity.
e go Excises should be imposed as far
as possible upon commodities in the
hands OF the final consumer rather
than upon tina articles which serve pri-
marily as raw material for further
production.
90 Taxes upon business should be
imposed Aa far as possible upon net
earnings rather than upon gross re-
ceipts or capital invested.
90 Taxes upon income which will
necessarily be severe should be both
differentiated and graduated. That is.
there should be a distinction between
earned and unearned incomes and there
should be a higher rate upon the larger
incomes. II Ii essential, however, not
tn make the income rate so excessive
as to lead 20 evasion, administrative
difficulties. or to the more fundamental
objections which have been urged
above.
90 The excess profits which are due
20 the war constitute the most obvious
and reasonable source OF revenue dur
ing war times. But the principle upon
which these war-proht taxes are laid
must be equitable in theory and easily
calculAble In practice.
The Proposed Income Tex.
The additional income tax as passed
by the House runs up to q rate Of 90
per cent This IL a sum unheard of in
the history OF civilized society. II must
be- remembered that II 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
II could easily be shown that a tar
with rates on moderate incomes sub
stantially less than In Great Britain
aud on the larger incomes about as
high, would yield only slightly less than
the &532. 10000 originally estima ted In
the House bill.
II Is 10 be hoped that the Senate will
reduce the total rate on the highest in
comes to "a per cent, or at most to n
per cent, and that at the same time Il
viii reduce the rate ON the smaller In
comes derived from personal or profes
, siOnal earnings,
~ the war continues We shall have Il
depend more and moro upon the In
, come tax. BY imposing excessive ratSt
now We are not only sndanasrlna th'
future, but are inviting all manner o
4 difficulties which even Great BrltNlI
D haa been able 10 escape,
I Conclusion.
4 Tho House bill contains other funda
mental defects which may be summe'
/ up as follows;
Z O IL pursues an erroneous principl,
/ In imposing retroactive taxes.
Il ca II selects an unjust and unwOrk
Is able criterion for the excess-profts tax
r kol u ffbNeRus IO an uuuthEu-u
l. height In the income tax.
Il 10 II imposes unwarrRnted burden
4 upon the consumption OF tho cOmmu
q nity.
!, 10 II II calculated TO throw busines
into confusion by levying taxes on gros
!. receipts instead OF upon commodities.
r CD II falls TO make a proper use q
r. stamp taxes.
q ca IL follows an unscientifc systeI
n In it's fiat rate on imports.
:, CSl II includes multiplicity Of pc
, ~ and unlucrRtive taxes, the vexatiou
~ ness OF which Is out OF all proportion
% the revenue they produce
- .
% The fundamental lines on which III
- House bin should DO modified are sun
:. med up herewith:
y Cd The amount OF new taxRtiC
should be limited to l.2oO. 600, 900 Z
II tho outset to 81 500. OOn.0O0 To 4
- more than this would be as unwiss
=; Il Il unnecessary To do even tn
m would be TO do more than has sv,
been done by any civilized Cover
m ncnt In time OF stress,
IN ca The exccss-prohts tax based ups
at sound system ought to yield abo
Is $SnO.OO0.OO0
ca The income-tax schedule ought
H. he revised with a lowering OF the rat
II un earned incomes below $1,000. 81
Of with an analogous lowering of d
- rates On the higher incomes. 40 as n
TO exceed "a per cent A careful Ct
M 'ulattOn shows that an income tar
n Jhls kind would yield some $4,000
liz 0oo additional
n 90 The tax ON whisky and tohac
- ought tn remain approximately as Il
IT with n yield % about $3.50, 100000
ne These three taxes. together with {
stamp tax At even the low rate Of I
81 House bill. and with an Improved q
Il. tomoblle tax, will yield over 81 d
at OOOOOO which Il the amount OF mon
thought Desirable