St. Johns review. (Saint Johns, Or.) 1904-current, 1917-07-27


cording to his share m the Government.
C2) Taxes on consumption. which are
necessarily borne by the community at
large, should be imposed as far as pos
sible on articles OF quasi-luxury rather
than on those OF necessity.
(3) Excises 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.
a. Taxes upon business should be
imposed as far as possible upon net
earnings rather than upon gross re.
ceipts or capital invested.
6) Taxes upon income which will
necessarily be severe should be both
differentiated and graduated That IL
there should be a distinction between
earned aud unearned incomes and there
should be n higher rate upon the larger
incomes. II Is essential, however. not
| 10 make the income rate so excessive
as 10 lead to evasion. administrative
difficulties, or 10 the more fundamental
objections which have been urged
above.
Co 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.pront taxes are laid
must be equitable in theory and easily
calculable In practice.
This Proposed Income Tax.
The additional income tax as passed
by the House runs up to n rate of 90
per cent. This Ia n sum unheard OF In
the history OF civilized society. IL must
be remembered that II was only after
the first year OF the war that Great
Britain increased her income tax to the
maximum OF % per cent, and that
even now I'm the fourth year OF the war
the income tax does not exceed 42l5
per cent.
II could easily be shown that n tax
with rates on moderate incomes sub
stantlnlly less than IN Great Britain.
and on the larger Incomes about as
high. would yield only slightly less than
the S532. 600. 900 originally estimated IN
the House bin.
II II 10 be hoped that the Senate will
reduce the total rate on the highest In.
comes 10 80 per cent or at most to ~
per cent, aud that nt the same time II
will reduce the rate ON the smaller In
comes derived from personal or profcs.
sional earnings
N tho war continue, ~e shall have 10
depend more and more upon the In.
come tss. BY imposing excessive rates
now We are not only endsnperina the
future, but are inviting ell rsnnsr of
difficulties which sven Great Britain
has been able TO escape.
Conclusion.
The House bill contains other funda-
mental defects which may be summed
up M follows;
"a IL pursucs mn erroneous principle
In imposing retroactive taxes.
t2) IL selects an unjust and unwork'
able criterion for the cxceSs.pronts tar,
(D II proceeds % an unheard-of
height In the Income tax.
a. II imposes unwarranted burdens
upon the consumption OF the commu'
nifty.
(5l IL IN calculated 20 throw business
into confusion by leyying taxes on gross
receipts Instead Of upon commodities.
(6l II falls 10 make a proper use Of
stamp taxes.
C7l II follows an mscientihc system
In its fiat rate on imports,
(Sl II includes multiplicity of pet
~ aud unlucratiye taxes, the yeNatious-
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:
OD The amount OF new taxation
should be limited 10 81 $50. 900, ,OO0-or
AT the outset to St.5OOOOO.O0O. To do
more than this world be as unwise as
il IL unnecessary. To do even this
would be To do more than has ever
been done by any civilized Govern
ment In time Of stress.
C2l The excess-proiits tax based upon
"A sound system ought 10 yield about
$500. .OOOOOO.
Gu The incOme-tax schedule ought t.
be revised with lowering OF the rates
on earned incomes below $1,000. and
with an analogous lowering of the |
rates ON the higher incomes, so ms not !
to exceed "a per cent, A careful cal |
culation shows that an Income tax OF |
this kind would yield some si5OOOO,'
100 additional.
"a The tax ON whisky aud tobacco |
ought 60 remain approximately as Il Is. |
with yield of about $3.50 100000.
These three taxes. together with the |
stamp tax at even the low rate OF the
House bill, aud With an improved au-
tax. will yield over sl.250.-
100000, which Is the amount OF money
thought desirable.
The above program would be In har.
mony with an approved scientific sys.
tenn IL viii do away with almost all
Df 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
ipon the rich, but will not 40 TO the
extremes OF contiscatlon II viii OBJ
'iate Interference with business and
will keep unimpaired the social pro
iuctiyity Of the community,
II win establish a just balance be-
'uccuuib 10 the danger OF approaching
'lther the taK-Only policy or the loan
'nly policy, Above all, It will keep an
lndisturbed elastic margin. which
must be more aud more heavily drawn