New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-13
Kahn Advocates
Even Distribution
Of War Burden
Financier Declares We
Should Not Try to Pay
Obligations at Once

Distribution of the burden of paying
for the war over a reasonable number
Of wears and the undesirability Of tax
ing incomes Eat rates without paral-
lei anywhere" were urged by Otto d.
Kahn. of Kuhn, Loeb e. Co., IN
statement issued to-day commenting on
proposals for war taxation.
"The cost of the war must be iaid
according TO the capacity to bear it,
soid Mr.. Kahn. at would be fatuous
foIlv and Grass selfshness to wish II
laid or endeavor to have it laid other-
wise All I am advocating in effect Is
that in the public interest not TOO
much be exacted at once, but that by
dividing the burden over a reasonable
number of years, capital in no one
year, and especially not during the
first wear of the war, should be so ex-
cessively taxed as to produce an uh-
scientific and dangerous strain.
Income Tax Burden Serious
~ believe an income tax greatly In
creased over the rates heretofore pre-
yailing, vet keeping within the BOUNDS
O, moderation, would produce at least
a, large a total revenue as an exceed
ingly high one. And the consequences
Of the economic error Of placing TOO
vast a burden direct upon incomes
would be more serious, think, to the
people in general than to the indi-
viduals directly concerned.
"The question Of the individual IS
not the principal one. The essential
thing is that no undue strain be placed
unon that great band of capital as
whole which is derived from incomes
Of all kinds.
aft is this fund which in its turn Is
one of the vital forces necessary LOT
tho normal activities and progress OF
industry. If that fund is suddenly and
too greatly reduced, the effect upon
l.
commerce and industry is liable 10 De
abrupt and whitening.
az realize but too well that the load
weighing at this time upon wage earn
ers and still more, perhaps, upon
men and women with moderate sal
aries ia almost too great to be borne
ond certainly much greater than IL
should be.
Calls Large Tax Harmful
"But I am convinced that reliei
cannot be found in taxation OF incomes
at rates without a parallel anywhere
and in nnduly burdensome lmposts
unon business activities. am con-
WINGED that certain theories being
urged upon Congress and the people
and to which the House war revenue
measure Is in part responsive, while
doubtless meant to tend and seeming
tending to a desirable contamination
are in fact, bound, in their longer
effect, to bring about results harmful
to the community at large, rich aho
poor alike" 1t, =
Mr.. Kahn also points out that, IN
contrast with what Congress Is plan
ming. the Canadian government re,
Gently introduced an income tax bill
the highest rates of which were less
than one-half those fixed by the House
of Representatives. He also says that
according to newspaper reports, Can
ada intends TO reduce or abolish the
excess profits tax at the end Of the
present year.
Another Canadian suggestion, that
of tax paid on purchases above the
amount Of IS. and charged as a sepa.
rate item, instead of being included
in the selling price Of the article, Is
cited in connection with Mr.. Kahn's
statement.