The Calhoun chronicle. [volume] (Grantsville, W. Va.) 1883-1984, 1917-08-30

During the first year OF the war she
Increased taxes only slightly, in order
~ keep industries going at top notch.
During the second year she raised by
now taxes only 8 per cent. OF her war
expenditures. During the third year
she levied by additional taxes lover
and above the pre-war leveD only
slightly more than II per cent. OF her
war expenses.
II we should attempt TO do rs much
In the first year OF the war as Great
Britain did In the third year II would
suffice TO raise by taxation 81 ,250. 600.
600 IT, In order to be absolutely OIL
the safe side. It seemed adv isable tc
increase the sum to $780, 100000, this
enould. in our opinion, be the maxi
VDam
Ia considering the apportlonment Of
the extraordinary burden OF taxes In
war times certain scientific principles
are definitely established:
How Taxos Should 20 Apportioned.
a. The burden OF taxes must be
spread as far as possible over the
whole community 50 as to cause each
individual To share In the sacrifices ac-
cOrding TO his ability to pay and ae-
cording 10 his share In the Government.
(2) Taxes on consumption, which are
necessarily borne BY the community at
large. should be imposed as far as poe
sible on articles OF quasi-luxury rathse
| than on those OF necessity.
az Kxcises should be imposed as far
ae possible upon commodities IN The
hands OF the final consumer rather
than upon the articles which serve pri-
marfly as raw material for furtbee
production.
( (4) Taxes upon business should DO
: imposed as far as possible upon net
earnings rather than upon gross re-
ccipts or capital invested.
tol Taxes upon income which WIN
necessarily DO severe should be both
! differentiated and graduated That Ii,
there should be distinction between
! earned and unearned incomes and there
should be higher rate upon the larger
! incomes. 1t Is essential however. not
to make the income rate so excessive
IA TO lead 10 evasion, administrative
/ difficulties. or 20 the moro fundamental
objections which have been urged
above.
10y The excess profits which are due
to tho wnr constitute the most obvious
and reasonable source OF revenue dug
ing war times. But the principle upoa
which these war-proht taxes are laid
must be equitable in theory and easily
calculable In practice.
Tho Proposed Income Tax.
The additional income tax az passed
by the House runs up to a rate Of %
pOr cent. 1'his Is 9 sum unheard of IN
the history OF civilized society II must
be remembered that II was only after
the flrst year Of the war that Great
Britain increased her income tax 10 the
maximum OF 90 per cent, and that
even now In the fourth year OF the war
the income INK does not exceed 42h
per cent.
II could easily be shown that a tax
with rates on moderate incomes sub
/ stantially less than IN Great Britain,
and OF the larger incomes about ~
high, would yield only slightly less than
! the $532, 100000 originally estimated In
/ The House bill.
/ II Is TO be hoped that the Senate will
! reduce the total rate on the highest In
\ comes TO 80 per cent, or ut most 10 40
/ per cent. and that NJ the same time Il
! VIII reduce the rate on the smaller In
comes derived from persona OF profes-
/ siOnai earnings.
II the wsr continues we shall have 20
/ depend nors and more upon the In
/ come tax. by Imposing excessive rates
now We are not only ondsnssrlna the
F future, but are inviting all manner Of
difficulties which oven Great Britain
/ has been able 10 escape.
Conclusion,
I The HOpse bill contains Qthor funda-
mental defects which may be summed
\ up nv follows.
CD II pursues an erroneous principle
b In imposing retroactive taxes,
3 C2) 10 selects an unjust and mwOsk-
3 able criterion for the exccss-pronts tar.
/ 90 IL proceeds 20 an unheard- OF
height Ia the income tax.
1 o. II imposes unwarranted burdens
upon the consumption ~ the comm
nifty
/ o. II IS calculated 10 throw business
. ihto Confusion ny leFyiNH inNea on gFnES
receipts Instead Of upon commodities.
+ Co II fails ~ make n proper use Of
stamp taxes.
I % II follows an unsclentihc systom
in its fat ratio OH imports
60 II includes q multiplicity ~ Pct
~ and uniucratlve taxes. the veEatous
ness Of which IS out Of all proportion 20
the revenue they produce
The Fundamental lines on which the
House Bill should be modified are sum
med up herewith
/ % The amount OF new taxation
should be limited 70 81 ,25O.OOOOOO- or
at the outset 20 81 ,5OO.OO0,OOO. To DO
more than this would be az unwiss as
10 IS unnecessary. To do even this
would be to do more than has ever