The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1917-06-13


the extraordinary burden of taxes in
war times certain scientific principles
are definitely established:
How Taxes Should Be Apportoned.
o. The burden of taxes must lie
spread as far as possible over tn
whole community SO as TO cause "a, j
individual to share in the sacrifices uc
cording TO his ability to pay and a.
cording to his share in the Government
(2) 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.
81 Excuses should be imposed as far
as possible upon commodities in the
hands of the final consNner 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.
o. Taxes upon income which will
necessarily be severe should be both
differentiated and graduated. That is,
there should be distinction between
earned and unearned incomes and there
should be higher rate upon the larger
incomes. 1t Is essential, however, not
to make TIC income rate so excessive
as to lead to evasion, administrative
10 f,,, A., tot
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-profit taxes 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 rate of GO
per cent. This is sum unheard Of in
the history of civilized society. 1t must
be remembered that it was only after
the first year Of the war that Great
maximum Of "a per cent, and that
even now in the fourth year Of the war
the income tax does not exceed 421a
per cent.
1t could easily be shown that a tax
with rates on moderate incomes sub
stantially less than III Great Britain.
and on the larger incomes about as
high, would yield only slightly less than
the $532, 900 600 originally estimated I'm
the House bill
1t is to he hoped that the Senate will
reduce the total rate on the highest in
comes TO "a per cent, or at most to 40
per cent, and that at the same time 1t
will reduce the rate on the smaller in
comes derived from personal or profess
sional earnings.
IF the war continues we shall have to
depend more and more upon the in.
come tax. BY imposing excessive rates
now we are not only endangering the
difficulties which even Great Britain
has been able to escape.
Conclusion.
The House bill contains other funda-
mental defects which may be summed
up as follows:
1 1t pursues an erroneous principle
in imposing retroactive taxes.
CIV 1t selects an unjust and unwork-
able criterion for the excess-protts tax.
O. 1t proceeds to an unheard-of
height IN the income tax.
(4) 1t imposes unwarranted burdens
upon the consumption of the commu.
nifty.
90 1t is calculated to throw business
into confusion by lcvying taxes on gross
receipts instead of upon commodities.
co. 1t fails to make a proper use of
stamp taxes.
60 1t follows an unscientific system
in its fiat rate on imports.
(S) 1t includes a multiplicity Of pet
ty and unlucrative taxes, the vexatious-
ness of which is out of all proportion to
the revenue they produce
The fundamental lines on which the
House bin should he modified are sum
ilitu uII HtItNltu.
a. The amount of new taxation
should be limited to 81 90, 700. OOO-or
at the outset to $l.50O,0O0,OOO To do
more than this would he as unwise as
it is unnecessary To do even this
would be to do more than has ever
been done by any civilized Govern.
ment In time of stress.
(2l The excess profits tax based upon
sound system ought to yield about
S500.OOO,OOO.
90 The income-tax schedule ought to
be revised with lowering of the rates
on carmel incomes below $4,000 and
with an analogous lowering of the
rates on the higher incomes, so as not
TO exceed "a per cent A careful cal
culation shows that an income tax Of
this kind would yield some S45O,OOO-
900 additional
"a The tax on whisky and tobacco
ought to remain approximately as it is,
with yield of about $3.50, 100000.
These three taxes. together with the