Daily capital journal. (Salem, Oregon) 1903-1919, 1917-09-04

The Minority Plan
Briefly, the plan of the minority,
which was rejected by the senate in
the vote upon my amendment is to av-
erage the profits of a business for three
years before the war, to deduct this
full pre-war profit from profits made
during the war and tax by seventy or
eighty per cent the remainder. For
instance, if in three years preceding
the war corporation made profits re-
spectively of $4,000, 100000 and
$l25,000, the average peace profit
would be 100000. If, during the war,
the same concern made profit OF
| 100000 a year, from this war profit
would be deducted the 100000 aver
age peace profits and tax would be
levied on the 100000 excess war prof
its.
THE group led by Penrose would
take of war profits 81 per cent. The
group led by Borah and Hollis would
take seventy to eighty per cent. We
who favor high taxes on war profits
insist the expenses of war should be
paid by those who profit by war; that
the burden of taxation lies least heav-
lily upon the great mass of our people
when taxation can be laid upon enorm-
Gus sums coined out of our misfortune
and our nation s perils; that when the
supreme maximum sacrifice is requir-
ed of humanity at least some sacrifice
should be required of the wealth made
out of humanity's sacrifice; that we
should not be lavish of our blood and
tender of our dollars.
'fThe answer made by Senator PEN
rose and his followers is that by such
taxes as we propose we injuRe business
and prevent productivity and preclude
the ordinary flux of industry This we
deny. England takes now 80 percent OF
war profits and the financial experts
of England say business was never bet
ter nor profits greater.
England's S System Right
ENGLAND took fifty per cent of her
war profits the first year and we gave
our business concerns 100 per cent;
England took sixty per cent OF her
was profits the second year and we
gave our people 100 per cent; England
took so per cent the third year and we,
tremblingly and timidly, will take 81
per cent and give to those who made
literally billions out of waf travail and
crises, practically seventy per cent OF
this years. war gains.
Every dollar we refuse TO take TO-
dav from those fabulous war profits,
profits which gave the paeifists ground
for calling this corporation war, must
be paid ultimately by the small mer-
chant and small property owner and
the average citizen. Today we have a
financial reservoir upon which to draw
"a reservoir Of war profits which the
people have created by their patriotic
outpouring of money to finance de-
mocraey's fight. The moment war eeas-
es. that moment that reservoir dries
OF course, those making these profits
cry wait, wait, wait.
'They mean that we shall wait un-
til they have safely poeketed their war
profits, until the war has ended with
unheard of liabilities and debts upon
us all.
tEThen the full bill must be paid by
the small merchant and the average
property owner, and when that time
comes the merchant, the tradesman,
the farmer and the ordinary property
owner, as he sorrowfully gazes upon his
swollen taxes, will wonder why he was
indifferent and supine hen the endeav-
or was made to tighten his burden and
to compel those who profited by war
to pay just part of the expenses OF
war -