The Elbert County tribune., 1917-07-06
Iu .orsldering die nnnnrtionmcnt cf

Nnr times cei<ulh ScfeHtlHI pItHcip!eS
ire definitely established
How Taxes Should Be Apportioned.
"a The burden Of taxes must bt
spread as far as possible over the
whole community 50 az TO cause each
Individual to share f.. thc sacrifices ac-
cording TO his ABILITY t. Fay and ac-
cording to his share ia the Government
~ Taxes on consumption. which ar,
necessarily borne by the community M
large. should be imposed rs far as pos
sible on articles of quasi-luxury rather
than on these of necessity
~ Excuses should be imro=cd as fai
as possible upon commodities In the
hands Of the final consumer rntheI
than upon the articles which serve pri
marily us raw material for further
production.
~ Taxes upon business should be
imposed as far as possible upon net
earnings rather than upon gross re
celpts or capital invested.
90 Taxes upon income which will
necessarily be severe should be both
differentiated and graduated. That is
there should be n distinction between
earned and unearned incomes and there
should be higher rate upon the larger
incomes. II is essential. however, not
to make the income rate SO excessive
as to lead to evasion. administratiY
difficulties. or to the more fundamental
objections which have been urged
above.
(W The excess profits which are due
al
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
calculable in practice.
The Proposed Income Tax.
The additional income tax as passed
by the House runs up to rate OF c.
per cent This is sum unheard of in
the history of civilized society 1t must
be remembered that 1t was only after
the first year OF the war that Great
Britain Increased her income tax to thf
maximum of "a per cent, and that
even now in the fourth year of the wa
the income tax does not exceed 42i
per cent.
II touiu tuNIN flt EloNu lIhf d ia
with rates ON moderate incomes sub
stantially less than in Great Britain
and on the larger incomes about a
high, would yield only slightly less thar
the S532 000,00 originally estimated il
the House bill.
1t is to be hoped that the Senate vii
reduce the total rate on the highest in,
comes to "a per cent. or at most to !
per cent, and that Mt the same time
will reduce the rate ON the smaller /
comes derived from personal or profc
sional earnings.
II the war continues we shall have
depend more and more upon the in
come tax. BY imposing excessive rate
now we are not only endangering tiis
future, but are inviting all manner o
difficulties which even Great Britain
has been able to escape.
Conclusion.
The House bill contains other fundo
mental defects which may be summe,
up as follows:
"a 1t pursues an erroneous principlt
in imposing retroactive taxes.
(2) 1t selects an unjust and unwork
able criterion for the eScess-proits tRx
90 1t proceeds to an unheard-o'
height in the income tax.
"a 1t imposes unwarranted burden
upon the consumption of the commu
nifty.
90 1t il calculated to throw busines
into confusion by levying taxes ON sros
receipts instead of upon commodities.
(G) 1t fails to make a proper use q.
stamp taxes.
CD 1t follows an unscientiiic system
in its fiat rate ON imports.
(S) II includes multiplicity of pei
~ and unlucrative taxes. the veXatiou
ness of which is out of all proportion {
the revenue they produce.
The fundamental lines on which tb
House bill should be modified are sun
med up herewith:
Q) The amount of new taxation
should be limited to 81 ,25O.D00.O00-o
Mt the outset to 81 ,50O.000.000 To d
more than this would be as unwise 3
It Is Unnecessary To do even tn
would be to do more than has owe
been done by any civilized Cover
ment in time of stress.
(2) The excess profits tax based upo
sound system ought to yield abou
s5O0,O00000.
C3) The income-tax schedule ought :
be revised with lowering of the rate
on earned incomes below $4,000. ans
with an analogous lowering or t.
rates on the higher incomes. so rs uu
to exceed "a per cent. \ careful a
ulation shows that an income tax Q
this Kind would yield some Sl1O.01o
400 additional.
(D The tax on whisky and tohact
.ught to remain approximately as it i
with yield of about $3.50 O00G00
These three taxes. together with IL
stamp tax ut even the low rate Of e.