The McDowell times. [volume] (Keystone, W. Va.) 1904-1941, 1917-06-15
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PAYfuR THE War?
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House nDvum 81.
Loans Better THAI IlyE

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Ways and Means. IL sAdne1unAl NV
nue. TO b derived was sse1mats1 q "a
$40. 10000. TIE ansodmsnt - t. h
come tai. which was tachsd n - IL
bin during the discussioo IN the Houss.
was expsctsd 70 ttssd another 10000
0OO or to0.Ooo.ouo
In discussinG sAs HOUSE b1n. two
problems ariso:
l. How much should - rasssd ~
taxationf
H. In what manner should this ssn
be raisedf
l. Nov Much should % Rsissd ~
ranattsaf
How was the figure Of q 100, 600 600
arrived att The answer - ample. WIN
the SECRETARY Of tie Treasury eans -
estimate the additional war expsnsss
for the year lolita be caicuiatsd that
they would amount 20 some eo.0Oo.-
100000. Of which - 900 0oo. 900 was 10
be allotted to the aiitss. and %. 600.
100000 was 60 Be- utilised fog the -
nestle purposes. Thinking that 4
would b q fair proposition 70 divide
this latter sum between loans anl
taxes. he concluded that the amount
TO be raised by taxss was 81. 800. oOo.-
600.
There are two extreme theortss. each
VI which may b dismissed with seant
courtesy. The ono h that an war e.
penditures should BE- defrlysd By loans.
and the other - that all war expsndi-
lures should b betrayed By taxss
Each theory - untenabia
IL II indeed true that the burdsas q
the war should b borne By the prss-
ent rather than the future esnsrstiou:
bot this does not mean that they should
be borne by this years taxation.
Meeting all war expenses By eaxat1ou
makes the taxpayer IN one % too
years bear the burden % benefits that
ought TO b distributed % least Over Q
decade within the same oensrattou.
In the second place. whsa sxpendi-
lures approach The stSantis suns q
present-day warfars. II tax-only POI
icy would require moro than the total
surplus Of social income. Were ehis
absolutely necessary. the ensuing hav-
&C In the economic Me Of the communi-
~ would have 30 b endured Bot
whers the disastsrs are % great and
% the same time % Unnecessary. ne
tax-oniy policy may be declared I'M
practicable.
Secretary AcAdoo hsA The fight -
stinct and highly commsndsb1s esuB-
age IN deciding that . substantial pos.
ton. st least. % the revenues should
b derived fson taxation. But wAso
he hit upon me plan Of $3.50 pr csot.
that II. of raising one-han of su a.
nestle war expenditures By taxsa. tie
question arises whether be dfd not 70
too far.
The relative proportion OF loans ~
taxes h after al . purely bushes
proposition Not to rely to . large ex-
tent on loans at the outset OF Q war n
. mistake
Disadvantages ~ gsssssivs vsns~
The disadvantages a szcsssivs taxo
a the OUTSET OF the war are a. foliows:
!. Excessive taxes On co1sumpt,op
vii cause popular resentment.
z Excessive taxes ~ Industry viii
iisarrange business damp snthuGdam
md restrict the spirit Of enterprise n
he very time when the opposite n
lee-ied.
.. Excessive taxes on incomes Win a.
hete the surplus available for invuuf-
nents and interfere with The PLACING Of
he enormous loans which will be neces-
AIRY In any event.
4. Excessive taxes o. wealth vpI
'ause q serious dfminueioa a IL n
comes which are - pssssas lasesly
drawn upon for The support 90 sdoes-
Tonsi and phflsnthropic enterprtsss.
Moreover. thsss sources a support
would be dried mp precisely O. the dine
when the need would b greatest
D. Excessive tsrstIse q ~ susss4 -
the var will reduce The sisstIssty s~sll-
able for the increasing demands shss
ere coon 70 eouss.
Great eeItsir's Policy.
Take Great Britain 90 an examux,
During the nrst year Of the var sh~
ipcreased tafes only slightly. IN orfe-