New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-24
u. S. Commerce Chamber
Heads Say Borrowing
Leads to Waste
Referendum Of
Members Planned
Increase in Postage to Yield
$I00,000,000 Is
Suggested

Washington. April % Sentiment Or
the business men throughout the coun-
try is that few should not be per.
mtted to profit greatly by the war a.
the expense Of many, according 70
report Of the committee on financing
the war Of the Chamber Of Commerce
Of the United States. A referendum
TO the business men Of the country, in
an effort 10 ascertain sentiment with
regard TO the proper methods Of rails
ing war revenues, will be taken b. tie
organization.
Modern warfare is extremely cost
ly," the committee report says. land in
order to meet any apprecisbe portion
Of the expense during its progress
heavy taxation must necessarily be i'm
posed. In European countries it is now
generally admitted that far heavier
taxes should have been imposed at an
earlier stage OF the war.
THE burden OF taxation can be made
lighter for all citizens If il is clearly
understood that waste and eXtrava-
gance undesirable at all times tend
in wartime TO increase seriously the
cost Of war. War borrowing leads TO
extravaganza; war taxation leads to
economy.
4 War Measure Only
Owe believe an excess profits tax
should be. in principle. a war measure
only. II can he justified only when
war exists. All business should pay
its share toward war expenses, bur
this tai should be levied so as to dis
turb as little as possible the fnancia!
machinery and tho industrial progress
Of the country
Regarding the proposals for two
retroactive teNes-Onc on excess prof.
its and the other upon incomes, both
TO be applied not 20 this years earn
ings, but the earnings Of 1916 the
committee holds that:
"The retroactive tax on excess prohts
is not only wrong in principle, the
committee believes. but is also unjust
because IL proposes TO levy tax on
profits Of 1915. which have already
been distributed. The retroactive tax
on income. the committee declares. is
likewise wrong in principle, and # y
il imperative for the government 20
obtain the amount which would be
raised ty such a tax ii would be more
equitable TO impose somewhat hgner
super-tax rates on individual incomes
during the present year.
Suggests Postage Rate Increase
As an additional source Of revenue
an increase Of 80 per cent on first class
domestic postage, but not less than
one cent additional on each piece nj
first class matter, is recommended. IAIs
tax would produce additional revenue
during the period Of the war approx
mating $100.000.000 year.
The committee believes that because
OF the large excess profits tax to BE-
imposed. and because dividends of
corporations will be subject to the war
super-tax as income in the hands o.
the stockholders. the income tax on
CORPORATIONS should remain unchanged
IrhcritanceS, in the committees op'n-
ION. arc not proper subjects for war
taxes. as such a tax would place an un-
lust burden upon the estates OF those
diving during the progress Of the war.
Schedule of Taxation
In view of the fact that the Trca7-
urv Department indicates the ncce p
sity Of raising by new taxation OF
various sorts approximately Sl,60O,OO0.-
GOO during the next twelve months, the
National Chamber committee submit
the following schedule, tentatively de-
signed TO obtain that result and IS
Indicating the relative amounts which
NAV be derived from different varieties
Of taxes:
Increased income tax on in
dividuals for the year
1917 ............-...... S4oO' OOo'ooo
Increase Of excess profits
tax for the year 1871. 2OO'OOO,OOC
Increase Of 80 per cent in
first class postage rates. lOO.OOO'0O.
Stamp taxes. Z0O,VUO'UPO
Increased customs duties,
as far as possible Of "A
purely revenue character lOO.0OO,UQJ
Excise taxes .............. $4,000, 900
$1,000. 100000
With reference 20 details Of bond
issues authorized by recent legisla-
ton. the committee deems it unwise
at this time to make any definite