Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1917-06-21
How Taxes Should 30 Apportioned,

~ ''" '''t"ih ntlcHtIUc principles
are definitely established:
How Taxes Should Be Apportioned.
~ The burden Of taxes must be
spread as far rs possible over the
whole community 50 as to cause each
individual to share in the sacrifices ac-
cor'iins To his ability 10 pay and ac-
cording TO his share in the Government.
ca Faxes on consumption, which are
necessarily borne by the community at
iafgt, should be imposed rs far as pos
sihle on articles Of quaSi-luXury rather
than On those OF necessity.
CD Exciscs should be imposed as far
as possible upon commodities in the
hands of the final consumer rather
than upon The articles which serve pri-
mariy as raw material for further
production.
"a Taxes upon business should be
imposed rs far as possible upon net
earnings rather than upon gross re-
ccipts or capital invested.
10 Taxes upon income which will
necessarily be severe should be both
differentiated and graduated. That is,
there should be IA distinction between
earned and ilnearuea incomes and there
should be a higher rate upon the larger
incomes. II Is essential, however, not
10 luake the income rate so excessive
rs 10 lead to evasion, administrative
difficulties, or to the more fundamental
objections which have been urged
above.
g, The excess profits which are due
to the war constitute the most obvious
and reasonable source Of revenue dur
ing war times. Eut the principle upon
| which these war-pr0iit taxes are laid
must be equitable in theory and easily
calculabIe in practice.
TIE Proposed Income Tax.
The additional income tax as passes
by the House runs up to rate Of GI
per cent This is a sum unhcalai OF II
the history Of civilized society. 1t mus
be remembered that it was only afte
| the first year OF the war that Grea
| Britain increased her income tax 10 lh
ma Ximum Of 81 per cent, and thN
oven now In the fourth year OF the wa
the income tax does not exceed ~
per cent .'
1t could easily be shown that a ta
with rates on moderate incomes sui
Stantially less than in Great Br!tait
and .on the larger incomes about a
high. would yield only slightly less tha
the S.l%soo. .O0o,000 originally estimated i
the House bill.
1t Is to be hoped that the Senate Wi
reduce the total rate on the highest il
comes to 81 per cent, or ut most to
per cent. and that at the same time
will reduce the rate on the smaller !
comes derived from personal Or profe
sional earnings.
If the war continues we shall have
depend more and more upon the II
!, como tax. BY imposing excessive rat'
now we are not only endangering Il
future, but are inviting all manner
difficulties which even Great Brlta
has been able to escape.
Conclusion.
| The House bill contains other fund
mental defects which may be summit
up as follows:
+ "a 1t pursucs an erroneous prlnclp
in imposing retroactive taxes.
, G, 1t selects an unjust and unWor
. able criterion for the cxccss-proiits tn
t3J it proceeds to an unleard-
height in the income tax.
\; "a 1t imposes unwarrnntcd burdel
, | uuon the consumption Of the comm
+, nifty.
(-) 1t is calculated to throw busine
into confusion by levyins taxes on gro
receipts instead of upon coni0oditic'
@ 1t fails to make proper use
stamp taxes.
C7) 1t follows an unscientific systt
in its fiat rate on imports.
(S) 1t includes II multiplicity OF r.
ty and unlucrativc taxes. the rexatio'
. ness of which is out OF all proportion
a the revenue they produce.
o The fundamental lines on which t
s House bill should be modified are su
: med up herewith:
y ID The amount Of new taxati
should be limited to $3.50. 100000
at the outset to SI,500.000, 600 To
i. more than this would be rs unwise
it is unnecessary. To do even t
;, would be to do more than has e'
been done by any civilized Cove
!, mcnt In time Of stress.
:, (19 The exccss.protits tax based VI
- a sound system ought to yield abe
Is $10lOo0,O00.
" Co The income,taX schedule ought
= be revised with lowering OF the ra
. on earned incomes below $4,000. u
', with an analogous lowering Of
- rates on the higher incomes, so as
to exceed 81 per cent. A careful
:, culation shows that an income tax
~ this kind would yield some $4,000
Il. 900 additional.
y az The tax on whisky ana topa
ought to remain Approximately ns 1t
- - with yield Of about $3.50, 100000
- These three taxes, together with
+" stamp tax ut even the low rate or
House hill, and with an improved
o. tonyobile tax, will yield over $l,2
:. 100000, which Is the amount OF mo-
thought desirable.
The above program would be IN !
- mony will, an approved scientific
w. ten. It will do away with almost
~ Of the complaints that are being ur
r. against the present. II will refr
40 from taxing the consumption OF