Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1917-07-12
m considering the apporrronmenr o,

How Taxes Should Be Apportoned.
"a The burden OF taxes must BE-
spread as far as possible over the
whole community so as to cause each
individual 10 share In the sacrifices ac
cording TO his ability to pay aud &C
cording to his share In the Government
~ Taxes on consumption, which ar,
necessarily borne by the community mt
large, should be imposed as far as pos.
sible on articles Of quasi-luxury rather
than on those OF necessity
90 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.
% Taxes upon business should be
imposed as far as possible upon net
earnings rather than upon gross re
ceipts or capital invested
90 Taxes upon income which will
| necessarily be severe should be both
differentiated and graduated. That is,
there should be a distinction between
should DO 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.
% 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-proflt taxes are laid
must be equitable In theory and easily
calculable In practice.
The Proposed Income Tax.
The additional income tax as passed
! b. the House runs up to a rate of 60
| 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
| Britain increased her income tax to the
maximum OF "a per cent, and that
/ even now III the fourth year of the war
| tho income tax does not exceed al
per cent.
1t could easily be shown that tax
with rates ou moderate incomes sub
stantlally less than in Great Britain.
and on the larger incomes about as
high, would yield only slightly less than
the 1892 100000 originally estimated In
the House bill.
1t is to be hoped that the Senate viii
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
como tax. BY imposing excessive rates
now we are not only endansering the
future, but are inviting all manner of
| difficulties which even Great Britain
! has been able to escape.
Conclusion.
! The Hof-c bill contains other funda-
mental defects which may be summed
up as follows:
"a 1t pursues an erroneous principle
III lllpiSiuE itiipHiLlN Z NuAtSs
(2) 1t selects an unjust and unwork-
able criterion for the exccssprofits tax
60 It proceeds to an unheard-of
height In the income tax
(D IL imposes unwarranted burdens
upon the consumption Of the commu.
nifty.
60 IL is calculated to throw business
into confusion by leyying taxes on gross
receipts instead of upon commodities,
CD 1t fails to make proper use OF
stamp taxes.
ca Ii follows an unscicntific system
In It's fat rate on imports
o. II includes multiplicity of pet
ty and unlucratiye 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 be modified are sum
med up herewith;
O) The amount OF new taXatlcu
should be limited to $3.50, 000,000--or
at the outset to Si,500,O0O 900 To do
more than this would be as unwlse 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,
C2) The oNcess-protits tax based upon
sound system ought to yield about
$50O.OOO,OO0
CD The income-taX schedule ought 10
be revised with q lowering OF the rates
on earned incomes below $1,000 aid
with an analogous lowering of the
rates ON the higher incomes, so as no.
to exceed 3i per cent A careful cal.
culation shows that an income tax OF
this kind would yield some $4,000
600 additional
90 The tax on whisky ana tobacco
ought 20 remain approximately MS 1t Is
with a yield OF about $230,0oo000
These three taxes together with the
stamp tax 40 even the low rate OF the
House bin, and with an improved an
tomobile taS, will yield over 81 25o
100000, which is the amount OF money
thought desirable
The above program would be in hur-
mony with an approved scientific sys
tenn. u win do away with almost all
Of the rOwu'gints that are being urged