The Washington herald., 1917-06-02
NINE

an economic revolution Greatly 10 IN
crease the second-class mall matter rates
might produce almost equally undesirA-
The augmented rates on nrst-claas nlaii
are not 20 unjustihable, but even these
ought to be levied only In case OF urgent
necessity.
From the above review Il WIN be seen
that the House bill is open to the most
serious criticism Entirely apart from
the fact that II Is predicated upon an
too much by taxation. the measure bears
evidence Of undue haste In It's consioera-
ton. perhaps e1cusable because OF the
exfgency OF the situation. It's funoa~
mental defects may by summed up As
iVrISN m ii pursue, an erroneous principle
In imposing retroactive ta1es -.
az ii selects an unjust and unworE-
able criterion for the excess-prona az
C0 II proceeds TO an unhearo-of heAgnf
In the income tax. -.
unon the consumption OF the community.
G0 II is calculated 20 throw business
into confusion by levyng taxes on gross
I6l II fails TO make q proper use Oh
a. II follows an unscientinc system In
its fat rate on imports "a ,..,
(0 II includes a multiplicity OF PesSs
and unlucrative taxes, the veKatiousness
on which is out Of all proporuon 70 Nne
revenue they produce. -.,,.-,,,, %
The senate has a great opportunity 20
erfect a reform which will be at once
democrats and equita bic. Ihe iunos
mental lines on which the senate ougnt
TO proceed have been iSsS inoleItea
They are summed Up hereWith: -
1.-THE amount Of new taNauon shol.u
he limited to 81 20. .op3,uo-or Al the oSt- ot
set TO Sl.jl0.0o.Oo. To 90 more taah % III
would be as unwise as Il Il unnecessary.
To do even this would he 10 90 more thah
mas ever been done by any civ1liSed gov
ernment in time OF stress.
2-The eIcess-prohts tax easeo uPoh ~,
sound system ought 20 yield about 800
IThe income-tar schedule ought 10 be
revised with q lowering Of me rates ..-,,L oh
an analogous lowering OF the rates on
the higher incomes, so as not 20 exceed
a per cent. A careful calculation shows
, that an income tax OF this kind would
yield some sI50OO0.0OO additional
4-The tax on whisky and tobacco
ought 10 remain approximately as II ls,
These three taxes. together with the
stamp tax at even the low rate OF the
House bill and with an approved auto
mobile tax. will yield over $50 o'l"'e.
which Is the amount OF money Thought
desirable II IL becomes necessary TO
raise another S250. 10000 Il can be done
in the following order: The tax on ad-
mission and club dues, yielding Sl5, 600 900;
! import duties on tea and coffee. yielding
about S50.OO0,0o0. and an excise tax on
sugar. fielding about N0,GN.GO0 The small
balance could then be raised by a re
q vised tax on freight transportation and
on hrEt-Class mail matter.
The above program would be in har-
mony with an approved scientific Eys-
tenn II will do away with almost all OF
4 the complaints that are being urged
against the present. II Will refrain from
taxing the consumption OF the poor. II
viii throw far heavier burden upon
the rich. but will not 20 70 the extremes
I Of Conhscation. II viii obviate iuterfer-
] ence with business and will keep unim-
! paired the social productivity Of the com
I munty. Il will establish a Just balance
| between loans and taxes and will not
succumb to the danger Of approaching
/ either the taX-only policy or the loan
only policy. Above all Il will keen an
undisturbed elastic margin which must
] be more and more heavily drawn upon
as the war proceeds. II Will make the
war loans 2 success and will not damp
] the enthusiasm OF the community Il
| will. in short. satisfy all the requirements
/ OF a wise fiscal policy in a period OF
/ storm and stress. our Senators have now
an opportunity OF showing their true
I statesmRnlike qualities and Of proving 70
the world that a democra cv can also pur-
( sue a fiscal policy which is both sane
and proEresSive.-New York Times