The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-06-09
REVENUE WITHOUT OPPRESSION.

Otto H Kahn, of the New York City firm OF
j. P Morgan & Co., has pointed out how the
problem of war taxation may be solved IN a
way to provide ample revenue and at the same
time avoid the danger that business will be so
burdened that it will be unequal to the task
laid upon it by the government. He says 1t is
right that no man, as far as 1T is possible TO
prevent it, shall make money out OF the war IN
which his country is engaged, 'but there is all
the difference in the world between that doc
trine and the unjust and immoral doctrine that
no man shall be permitted to have more than
an arbitrarily fixed income during the war .
He believes that there should be an excess
profits tax considerably higher than the pres
ent eight per cent, or even the proposed SIX
teen per cent, but that it should be applicable
only to the extent that business profits ex-
coed the profits of a certain average period be-
fore the war, and that may justly be held to be
attributable to war conditions He would al
low an offset, which might be fixed at ten per
cent per annum on all new capital invested In
business since the beginning of the war.
! It will be seen that Mr. Kahn is not pro-
posing to reduce but rather to increase the sum
Ito be raised by taxation, for he says that from
figures shown to him it would appear that
forty per cent tax on excess profits above the
WELD this year at least eight hundred million
dollars in addition to the corporate income tax
at the rate of four per cent. His figures are
based on the assumption that the aggregate
profits this year will be about equal to those OF
1916. and he makes the significant remark that
this assumption is not unreasonable, pro-
yided always that unscientifc taxation or other
unwise measures do not destroy prosperity
That prosperity may be destroyed by foolish
Legislation is danger made manifest by the
work of the house of representatives IN franz
ing war revenue bill Mr.. Kahn understands
it to be the policy of the Dominion government
to refrain from imposing an income tax IN Or
der to attract capital to Canada He has little
doubt that, if our income taxation be fixed at
unnecessarily high rates, there will be a large
outflow of American capital to Canada.
The senate committee now at work on the
revenue bill should give serious attention to Mr..
IKahn's suggestions, including his proposal of a
two-cent tax on checks The check stamp tax
lis fair; it collects itself and Is not burdensome.
| While some rather troublesome questions
were asked at Washington by counsel for the
shippers on cross examination of the railroad
presidents who have asked permission to in
crease freight charges it is believed that the
Interstate commerce commissions decision will
be in favor of the carriers. Not many pre-
dictions are made as to the amount of the in
crease but there is pretty general agreement
| that it should be sufficient to cover the cost OF
THE Adamson law and that the commission may
be expected to take account Of the high prices
Iof fuel and railroad equipment.
! A domestic science lecturer tells women they
NAV become and continue beautiful by eating
one onion, half pound of cabbage or spinach,
half grated turnip and a handful of cram
berries daily AS beauty is but skin deep, why
not grind and mix the ingredients and apply as
a lotion?
| Editor Creel announces that the "Official
Bulletin" is not newspaper. True enough;
but what is it7
i Thrift gardeners need have no fear OF getting
in conflict with the food boarding law; not yet.