The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-08-10
Commanders FOur-Fifths of
MunitiOn Plants Profits.
To Yield Billion Dollar ReVe-
nue. to Govt a Year.
PROTECT NORMAL BUSINESS
Figures Are Based on Net Pro-
ceedS in Peace Times.
Income Records Make Tax Adj
justment Easy Job.
BY LOWELL MELlETT.

London, Aug. 10.-You cannot take
all the profit out of war without dis
aster to the normal business struc-
ture. This is the view OF thu British
government. but you can commander
that profit for the uses O. the state,
after it has been made. This is what
the government is doing.
The present fiscal year will show
billion dollars Communicated, one OF
the governments financial authorities
told the United Press today. The
views of this financial authority were
sought that the British plan might be
outlined to Americans. now facing the
subject of excess profits as one of
their big war problems
In the year ending March 81, the
British government claimed and re-
cess business profits. or sixty per cent
of tie total excess. The billion dollar
anticipation is based on the new eighty
per cent tax now in force
Doesn't Affect Business.
There has been some argument
against taking the tax as high as 80
per cent" said the United Press in
formant. ION the ground that l. would
discourage enterprise and thus defeat
its own purpose. The objection came
from theorists, rather than the bust
ness men themselves, however Bust
ness certainly shows no Signs of dis
enlargement"
Earlier in the war the government
took only fifty per cent of excess prof
its. The increase to the point where
only 20 per cent is left to the business
concern has been gradual
''This does not mean," ii was ex-
planned, that these concerns are al
only that if their war time Profits are
above their peace time profits, they
may retain only 90 per cent of the in
crease. The taxation of their normal
profits continues just the same tho
this taxation, too, is at a :-luch higher
rate than it was before the war
Tax System Is Simple.
MANY ways of reaching these ex-
cess profits were considered, but that
adopted appeals to us because of its
simplicity. We had the means in eX-
istence for ascertaining what the
profits had been in the years immed-
lately preceding the war and computed
the difference after the war began.
Our Income tax records and machinery
removed many of the difficulties.
Practically the only concerns whose
profits could not be ascertaiLe ed
readily are concerns doing too small
a business to come within the OPP
Grafton of the act"
EMISSIONS and terms to evade the tax
law, have been common. British
business men who are engaged in
making munitions or retailing luxuries,
have received the principal of the
law.
THE man who could not accept it
would be a pretty patriot" said the
official quoted. Fortunately for the
credit of the British people such poor
patriots are rare.
Would Discourage Industry.
There has been the suggestion that
all war profits should be confiscated.
We believe there is hardly room for
doubt that this would discourage in
dustry to a point that would mean
serious injury to our national life.
America has been doing such
splendid things in a financial way for
the benefit of the allies that we hope
to hear she is protecting her own in
terests in this vital matter."N