The daily star-mirror. (Moscow, Idaho) 1911-1939, 1917-07-02

- r.
a. The burden Of taxes must be
spread as far as possible over the
whole community so as to cause each
individual to share in the sacrifices &C
cording to his ability to pay and ac-
cording to his share in the Government.
(0 Taxes OF consumption, which are
necessarily borne by the community at
large, should be imposed as far as pos
sible ON articles Of duasi-luxury rather
than on.those OF necessity.
81 Excuses should be imposed as far
as possible upon commodities in the
hands Of the final consumer rather
than upon the articles which serve pri-
production.
| a. Taxes upon business should be
imposed as far as possible upon net
earnings rather than upon gross re-
ceipts or capital invested.
o. Taxes upon income which will
necessarily be severe should be both
differentiated and graduated That is.
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
as to lead to evasion. administrative
difficulties, or to the more fundamental
objections which have been urged
above.
(6) 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-proflt taxes are laid
must be equitable in theory and easily
calculable in practice.
The Proposed Income Tax.
The additional income tax az passed |
by the House runs up to a rate of 60 |
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 the
maximum of 81 per cent, and that
even now In the fourth year Of the war
he income tax does not exceed 421a
Der cent.
1t could easily be shown that tax
With rates on moderate incomes sub ,
less than In Great Britain, ,
md on the larger incomes about az .
Ugh, would yield only slightly less than
he $532, 100000 originally estimated in
he House bill.
1t is to be hoped that the Senate will
educe the total rate on the highest In
ONES to 81 per cent. or at most to 40 d.
er cent, and that at the same time 1t
yill reduce the rate on the smaller in
ONES derived from personal or profess
Onal earnings.
IF the war continues ws shall have to
spend moro and moro upon the in
,me tax. BY imposing excessive rates y
NV we are not only endangering the !,
Iture, but are inviting all manner Of =
faculties which even Great Britain
Is been able to escape.
Conclusion.
The House bill contains other funda- D
entail defects which may be summed
} as follows:
ID 1t pursues an erroneous principle =
imposing retroactive taxes.
(2) It.selects an unjust and unwork- =
lie criterion for the excess-profits tax. "
- 1t proceeds to an lmheard- of
light in the income tax
~ 1t imposes unwarranted burdens -
on the consumption of the commu- w
".
81 It is calculated to throw business
O confusion by levying taxes on gross
eipts instead OF upon commodities.
81 1t fails to make q proper use of r
mp taxes.
Its fat rate on imports.
81 1t includes a multiplicity Of pet =
and unlucrative taxes, the vexatiOus-
s OF which is out Of all proportion to -
revenue they produce. 10
use bill should be modified are sum- !
l up herewith:
The amount Of new taxation 8
uld be limited to 81, 25O, 900 00O-or a
he outset to $500, 100000. To do II
e than this would be as unwise as I
8 unnecessary. To do even this -
I'D be to do more than has ever SIN
] done by any civilized Govern 6.
It In time Of stress. T.
The excess-profits tax based upon
,und system ought to yield about
100000.
The fncOme-tax schedule ought to -
evised with lowering Of the rates VIII
armed incomes below $4,000, and id
| an analogous lowering Of the d
> on the higher incomes, SO as not -
xceed "a per cent A careful cal
ton shows that an income tax OF -
kind would yield some $3.50. OOO,- nor
additional
The tax on whisky and tobacco
It to remain approximately as 1t is. os
yield Of about S23O,OOO,OOO.
csc three taxes, together with the
p tax at even the low rate Of the
Sc bill. and with an improved au- FOR
bile tax, will yield over $780, ra
90. which is the amount Of money n
yht desirable
? above program would be in har
2 with an approved scientific sys-
1t will do away with almost all
e complaints that are being urged FOR