The twice-a-week Twin Falls times. (Twin Falls, Idaho) 1916-1918, 1917-10-09
OMITTED FACTS IN BORAH TALK
(F'rom Sunday Times, Republishe,
by Request


he does not say when he talks Of tax
ing the swollen revenues growing out
Of the war
The senator's basic propositions:
that as much OF the tremendous war
cost as is possible should be raised 10y
taxation at the present rather than by
bonding the future; and that it is the
bounden duty of congress to distrib-
ute the burdens of such taxation
equitably and fairly, are both in per-
fect accord with President Wilson's
message. as quoted by him, and are
beyond cavil or criticism on the part
of any patriotic citizen
The casual listener to his address on
Wednesday evening at the Layering
theatre might have gained the i'm
preston that under the revenue bill
Just enacted. the munitions manuiac-
turer escaped, when as "a matter of
fact taxes. which i'm case of extreme
ly high profits reached sixty per cent
have been provided for. Not only that,
but the surtax feature OF the income
tax section provides for income taxes
as high as sixty per cent for incomes
exceeding $lOOO,0OO. So that when
the money gets into the hands OF the
big stock holder, it is again subject
ed to taxation.
We quote the summary of the law
which provides chat the graduated
tax of 20 to 60 per cent ON excess
profits of corporations, partnerships
and individuals shall be levied on a
basis of invested capital compared
with invested capital Of the three
pre-war years of 1911, 1912 and 1913.
This is a substitute for the senate
taxes of from u to 60 per cent, based
on similar comparison Of pre-war
and present profits.
The income tax section (of the
senate bid virtually was unchanged
except for the Encouragement of sur
taxes on incomes between $4,000 and
$4,000. The graduated surtax of
from one to so per cent of incomes of
from $4,000 to s1,OOO,OOO and over was
approved.
THE senate increase of from two to
four per cent of the income tax on
corporations and Joint stock com
panies and insurance companies was
approved, together with the new nor
mal, individual tax, of two per cent
on incomes of unmarried persons in
excess of $1,000 and married persons
OF more than $4,000.
THE new rates on nheritances,
with those of Americans in military
service exempted range from one-half
OF one per cent on $4,000 estates to
ten per cent on estates Of $1O,OOO.OOO
o, more"
In other words your corporation en-
gagged in munitions making first pays
"A regular income tax. Then it pays
war-profits tax ranging, according to
the rate of net earnings, all the way
from twenty to sixty per cent of its
excess profits. Lastly. after the
money is divided every individual who
draws more than $1,000, and if unmar-
ried more than $1,000, is subject to in
come tax. Finally. should death come
another tax is levied. on all estates Of
$4,000 and over.
Now Senator Borah did not say that
these taxes We're not levied, but we
are certain that the impression re-
ceived by many in his audience was
that these profits practically escaped
taxation.
The fact that Senator Borah did at
one time during his address incidently
remark that he believed twenty-one
per cent too small an average proper
ton to take from war profits and that
at another he observed that he thought
three billion dollars, instead of a bill
lion dollars should have been taken
did not prevent some from laboring un-
der the misapprehension suggested, as
a discussion with men on the street
demonstrated. The fact that a gradu-
ated war profits tax, had actually been
written into the law, which, whether
adequate or not increased in proper
ton to the size of the profits. was not
only not definitely stated, but was not
even clearly intimated-
Another thing: many of these cor
porations have invested vast fortunes
in new buildings and special machin-
cry for the manufacture of war sup
plies which at present are necessary
for the government, and when war
closes every one of the great factories
and the buildings connected with them
will be dead loss This fact that prac-
tically the entire additional invest
ment in some cases will be lost, should
be taken into consideration in figuring
the rate of profits that these men