The Weston leader. [volume] (Weston, Umatilla County, Or.) 189?-1946, 1917-07-06


necessarily borne by the community al
large. should be imposed as far as POS
sihle on articles ot QuaSi.luxury ratheI
than on those of nccesSity,
(3l Exciscs should hc impoS,Nl as fal
as possible upon commolltics IN the
hands of the final consumer rather
than upon the articles which serve prl
marlly as raw material for firthcI
production.
(ll Taxes upon business should he
imposed as far as possible upon net
earnings rather than upon gross re
ceipts or capital invested,
(@ Taxes upon income which VIII
necessarily bc seVcN should BE- both
differentiated aud graduated, That is,
there should be a distinction between
earned aud uucancd incomes and there
should he n higher rate upon the larger
incomes, II Is essential, however, not
10 make the income rate so excessive
, as to lead 10 evasion, administrative
difficulties. or 10 the more fundamental
objections which have been urged
above,
0l The excess profits which are due
10 the war constitute the NEST obvious
aud reasonable source Of revenue dur
ing war times, But the principle upon
which these war.proht taxes are laid
must be equitable in theory and easily
calculable in practice.
The Proposed Income Tax.
The additional income tax rs passed
by the House runs up 10 rate OF ~
per cent. This Is sum unheard OF in
the history Of civilized society. II 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 81 per cent, and that
even now In the fourth year OF the wat
the income tax does not exceed i2,i
per cent.
II could easily be shown that n tax
with rates on moderate incomes sub
S,antially less than In Great Britain
aud on the larger incomes about ne
high. would yield only slightly less than
the S532,000.o00 originally estimated In
the House bill
II is to he hoped that the Senate viii
reduce the total rate OH the highest in.
comes TO 81 per cent, or at most to 10
per cent, and that NJ the same time II
win reduce the rate on the smaller kS
comes derived from personal or profes
sional earnings.
" the war continues we shall have to
depend more and more upon the in
come tax. BY imposing excessive rates
now we arc not only endannsring the
future, but are inviting all manner Of
difficulties which even Great Britain
has been able to escape.
Conclusion.
The House bill contains other fluda
mental defects which may be summed
up as follows:
~ II pursues an erroneous principle
In imposing retroactive taxes.
e. II selects an unjust and unwork.
ible criterion for the exccss,proiits tax.
81 1t proceeds to an unheard-ot
leight In the income tax.
H Ii imposes unwarranted burdens
Ipon the consumption Of the commu-
iity. ,
(jl II is calculated to throw business
nto confusion by levying taxes on gross
'eceipts instead OF upon commodities.
90 1t fails to make a proper use Of /.
tamp taxes.
"a 1t follows an unscientihc system
n its fiat rate on imports
GS II includes a multiplicity OF pet. .,
= and unlucratire taxes, the vexatious.
ess of which is out of all proportion to p
he revenue they produce
The fundamental lines on which the
louise bill should be modified are sum-
led up herewith:
ID The amount Of new taxation
hould be limited to 81. J0,OOO,O O,OO0-or
the outset to $1,jO0,OO0OO0 To do
lore than this would be as unwise az
is unnecessary. To do even this
ould be to do more than has ever
zen done by any civilized Govern
ent in time Of stress.
(2l The excess-profts tax based upon
sound system ought to yield about
000O0,O00.
(9 The income-tax schedule ought to
revised with lowering OF the rates %
earned incomes below $4,000, and
lth an analogous lowering of the
tes on the higher incomes, so as not
exceed 81 per cent. A careful cal
lation shows that an income tax of
Is kind would yield some $4,000
additional
Al The tax on whisky and tobacco
ght to remain approximately as 1t Is,
th yield or about $230,000O00.
These three taxes, together with the
mp tax at even the low rate Of the
,IIse bill. and with an improved au-
Mobile tax, will yield over $780,
1900, which is the amount Of money
,ught desirable.
he above program would be in har-
ny with an approved scientific sys- 4
}. II will do away with almost all
the complaints that are being urged
inst the present. 1t will refrain
m taxing the consumption of the
r.
will fbPom n fa. t,oo,,to, s,,.dn.,