The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1917-06-29

war times certain scientific PRINCIPLES
are definitely established:
How Taxes Should Ne ApportIonsA
"a The burden OF taxes must ba
spread al far as possible over the
whole community % Is to cause each
individual to share In the sacrifices &c
cording TO his ability 70 pay and &C
cording to his share in the Government
I'D Taxes on consumption, which are
necessarily borne by the community at
large. should be imposed as far az pos
sible on articles Of quasi-luxury rather
than on those OF necessity.
(8) Excuses should be imposed as far
as possible upon commodities I'm the
hands OF the final consumer rather
than upon the articles which serve pri-
marily as raw material for further
production.
I'D Taxes upon business should be
imposed as far az possible upon net
earnings rather than upon gross re-
cefpts or capital invested.
90 Taxes upon income which win
necessarily be severe should be both
differentiated and graduated. That Ia,
there should be a 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 30 excessive
as to lead to evasion, administrati tive
dimculties. or to the more fundamental
objections which have been urged
above.
lGA THE oxooam rvoAt. -wMa.A - a.
70 the war constitute the most obvious
and reasonable source Of revenue dur
Ing war times. But the principle upon
which these war-proht taxes are laid
must be equitable in theory and easily
calculable in practice.
The Proposed Income Tax.
The additional income tax as passed
by the House runs up TO a rate OF 90
per cent. This Is a sum unheard of In
the history of civilized society. II must
be remembered that It was only after
the first year of the war that Great
Britain increased her income tau to the
maximum of "a per cent, and that
even now In the fourth year Of the war
the income tax does not exceed 421h
per cent.
II could easily be shown that a tar
with rates on moderate incomes sub
stantially less than in Great Britain,
and on the larger incomes about as
high, would yield only slightly less than
the $500 100000 originally estimated in
the House bill
1t is to be hoped that the Senate will
reduce the total rate on the highest in
comes to "a per cent, or at most 70 20
per cent, and that at the same time II
will reduce the rate on the smaller In.
comes derived from personal or profess
sional earnings.
" the war continues u~O shall have 60
depend moro and more upon the In
como tax. BY imposing excessive rates
now we are not only ondanaorins the
future. but are inviting all manner Of
difficulties which even Great Britain
has been able 20 escape.
Conclusion.
The House bill contains other funda-
mental defects which may be summed
up as follows:
a. 1t pursues an erroneous principle
in imposing retroactive taxes.
C2 1t selects an unjust and unwOrk.
able criterion for the profits tax.
81 1t proceeds to an unheard-of
height In the income tan.
~ It imposes unwarranted burdens
upon the consumption of the cOmmu-
nifty.
(5) 1t IL calculated to throw business
into confusion by levying taxes on gross
receipts instead OF upon commodities.
90 1t fails to make a proper NE of
stamp taxes.
a. 1t follows an unscientife system
in its fiat rate on imports.
81 1t includes a multiplicity Of pet
ty and unlucrative taxes, the Yexattous-
ness OF which is out of all proportion 70
the revenue they produce.
The fundamental lines on which the
House bin should be modified are sum.
med up herewith:
ID The amount OF new taxation
should be limited to 81 .250, 900. O00-oF
at the outset to 81 SOC. O00.000 To do
more than this would be as unwise as
II is unnecessary To do even this
would be to do more than has ever
been done by any civilized Govern
ment In time OF stress
GU The excess-prOnts tar based upon
a sound system ought TO yield about
$5OO,0O0,OO0
(3) The income-tax schedule ought %
be revised with a lowering OF the rates
ON earned incomes below $4,000, and
with an analogous lowering OF the
rates on the higher incomes. 30 as NOT
to exceed "a per cent A careful cal.
culation shows that an income tax OF
this kind would yield some $4,000.
600 additional
~ The tax on whisky and tobacco
ought to remain approximately a. II II
with yield OF about S23o.000O0O.
These three taxes. together with the
stamp tax at even the low rate Of the
House bill, and with an improved au
tOmobile tax. win yield over 81 $50.
1900. which Il the amount q money
fhnugbR Hoagrmbla