American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1917-06-22

N-n illIIfCl fnIa.I" % u.
How Taxes Should &c Apportioned.
Oh The burden # Eases must be
spr I'D as far a. possible over the
whole community so as 10 cause each
individual to share i'll the sacrifices ac-
co.lin1 To- bis ability to pay and ac-
cordiug % his share IN the Government.
t2J Taxes Oh consumption. which are
necessarily borue by the community at
large. should be imposed as far as pos
sihle OF articles of Q~uasiluxury rather
than on those Of necessity.
l3l Excuses should be imposed as far
as possible upon commodities in the
hands Of the final consumer rather
than upon The articles which serve pri-
marily as raw material for further
production.
t4D Taxes upon business should he
imposed as far as possible upon net
earnings rather than upon gross re-
ceipts on capital invested.
~ Taxes upon income which will
necessarily be severe should be both
differentiated and graduated. That is,
there should be "a distinction between
earned and unearned incomes and there
should be "A higher rate upon the larger
Incomes. 1t is essential, however, not
to make the income rate so excessive
as to lead to evasion, administrative
difficulties, or to the more fundamental
objections which have been urged
above.
90 The excess profits which are due
to the war constitute the most obvious
and reasonable source Of revenue dur
ing war times. But the principle upon
which these war-proft axes 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 &C
per cent. This is a sum unheard Of in
the history Of civilized society. 1t must
be remembered hat it was only aftel
the first year Of the war that Great
Britain increased her income tax to the
maximum Of 81 per cent. and thai
even now ia the fourth year of the wal
the income tax does not exceed 42l.
per cent.
1t could easily be shown hat a tal
with rates on moderate incomes sub
s|tantially less than in Great Britain
and on the larger incomes about al
high. would yield only slightly less THAI
the $500. 100000 originally estimated il
the House bill.
1t is to be hoped that the Senate vii
reduce the total rate on the highest in
comes to "a per cent. or at most to 1
per cent. and that at the same time
will reduce the rate on the smaller IN
comes derived from personal or prote'
sional cummings.
II the war continues we shall have I
depend more and more upon the in
come tax. BY imposing excessive rate
now we are not only endangerins tn
future, but are inviting all manner {
difficulties which ven Great Britai
o has been able to escape.
I Conclusion.
a The House bill contains other funds
mental defects which may be summe
l. up a. follows:
a 1t pursues an erroneous princip
in imposing retroactive taxes.
IL 90 1t selects an unjust and unworI
s able criterion for the eXcess-profts tn
90 1t proceeds to an unheard-'
+ height in the income tax.
II ca 1t imposes unwarranted burdeI
d upon the consumption Of the comm
nifty.
% 1t is calculated to throw busine
into confusion by levying taxes on gro
receipts instead of upon cOmmoditie:
r () 1t fails to make n proper use
r stamp taxes.
Id ca 1t follows an u~nscientitic systt
in fits HAT rate on imports.
81 1t includes a multiplicity Of p
O. ty and unlucrative taxes. the vexatiol
he ness of which is ont of all proportion
the revenue they produce.
The fundamental lines on which I
House bill should he modified are su
" med up herewith:
is N The amount OF new taxati
should be limited to S1.25OO0OOOO-
at the outset to S1.jO0OOO.0 GOO. To
es more than this would he as unwise
IS. it is unnecessary. To do even t
on would be to do more than has O.
been done 10y any civilized Cove
i'm ment i'm time Of stress.
SIN % The excess-profts tax based NJ
at a sound system ought to Weld alb
is S50OOOO.OO0
Gl The iucome-taX schedule ought
de- be revised with a lowering of the ra
Ct on earned incomes below $4,000, 4
OF with an analogous lowering OF
es rates on the higher incomes. so as
to exceed "a per cent. \ careful
,iu culation shows thar an income tax
in. this kind would yield some $500
DIV 600 additional
ca These three taxes, together with
rs. stamp tax at even the low rate of
ort House bill, and with an improved
me tomohile tax. will yield over ST.
100000. which is the amount Of mo
.b.,,rIt ,1aefwn1Fn