The Lamar register., 1917-06-20

per cent. This is sum unheard OF in
the history Of civilized society 1t must
be remembered that II was only after
the first year of the war that Great
Britain increased her income tax to the
ma aximum of "a per cent, and that
even now In the fourth year of the war
the income tax does not exceed AZ.
per cent
II could easily be shown that tax
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 S532. 100000 originally estimated IL
the House bill
II Is to be hoped that the Senate will
reduce the total rate on the highest in.
comes to - per cent. or at most to 10
per cent. and that at the same time It
win reduce the rate on the smaller In.
comes derived from personal or profes-
sional earnings
II the war continues we shall have to
depend more and more upon the in
come tax. BY imposing excessive rates
now we are not only endangering the
future, but are inviting all manner Of
difficulties which even Great Britain
has been able TO escape.
Conclusion.
The House bill contains other funda-
mental defects which may be summed
up Hs follows:
% II pursues an erroneous principle
in imposing retroactive taxes
C2i 1t selects an unjust and unworlS-
able criterion for the excess profits tax.
o. 1t proceeds to an unheard-of
height In the income tax.
a. 1t imposes unwarranted burdens
upon the consumption Of the cOmmu-
nifty
Cjl 1t is calculated to throw business
into confusion by levying taxes on gross
receipts instead OF upon commodities.
(Gl II fails to make a proper use Of
stamp taxes.
0 1t follows an unscientlhc system
in its hat rate on imports.
Csl 1t includes a multiplicity OF pet
I ty and unlucrative taxes the vexntious.
ness Of which is out Of all proportion to
the revenue they produce
The fundamental lines on which the
/ House bill should be modified are sum
med up herewith:
"a The amount OF new taxation
should be limited TO 1880 OOO.OOO-or
at the outset to S1,JOOOOOOOO To do
more than this would be as unwise as
It is unnecessary To do even this
would be to do more than has ever
been done by any civilized Govern
mcnt In time of stress.
/ o. The excess-profits tax based upon
| sound system ought to yield about
! SJOO.OOO.OOO
! O. The income-taX schedule ought to
be revised with lowering Of the rates
on earned incomes below $4,000. aud
with an analogous lowering OF the
rates on the higher incomes. so as not
/ TO exceed "a per cent A careful cal
culation shows that an income tax OF
this kind would yield some SfJO.OOO.-
| 900 additional
AZ The tax on whisky and tobacco
ought to remain approximately as 1t Is,
with yield OF about S23OlOOOOOO.
These three taxes, together with the
stamp tax at even the low rate Of the
House bill, and with an improved au-
tomobile tax, viii yield over 81 ,25O,-
100000, which is the amount OF money
thought desirable
The nboye program would be in har-
mony with an approved scientific sys-
TEN. II will do away with almost all
OF the complaints that are being urged
against the present II will refrain
from taxing the consumption Of the
poor.
IL will throw far heavier burden
upon the rich. but will not 20 to the
extremes Of conhscatiOn. Il will OBJ
viate interference with business and
will keep unimpaired the sgcial pro-
ductlvity Of the community.
1t will establish a just balance be-
tween loans and taxes and viii not
succumb to the danger OF approaching
either the taX-only policy or the loan
only policy Above all. It viii keen
an undisturbed elastic margin. which
...,..s .,,.F vr..g-o b.u,FI,-