Metropolis weekly gazette. (Metropolis, Ill.) 1???-19??, 1917-06-15

the extraordinary burden OF taxes In
war times certain scientific principles
are definitely established.
Hew Taxes Should Be Apportionsd.
III The burden OF t0kes must be
spread as Ear as possible over the
whole community so as TO cause each
Individual TO share In the sacrifices ac-
cording 10 his ability TO pay and ac-
cording to his share In the Government.
- Taxes on consumption. which are
necessarily borne by the community at
large. Should he IMPOSED as far us pos
sible on articles of quasl-luxury rather
than on those OF necessity.
90 Excuses should be imposed as far
as possible upon commodities IA the
hands OF the final consumer rather
than upon the articles which serve pr-
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 ur capital invested.
Ca Taxes upon income which will
necessarily be severe should be both
differentiated aud graduated. That Il.
there should be a distinction between
earned and unearncd incomes and there
should be higher rate upon the larger
Incomes. II Is essential. however. not
10 make the income rate so excessive
rs to lead TO evasion. administrative
difficulties. or 10 the more fundamental
objections which have been urged
above.
90 The excess profits which are due
- fhe war constitute the most obvious
and reasonable source OF revenue dur.
lng var times. But the principle upon
which these war profit taxes are iaid
must be equitable in theory and easily
eaiculable In practice
The Proposed Income Tss.
The additional income tax a. passed
by the House INNS NJ TO a rate of.ro
per cent. This IL a sum unbeard Of In
the history Of civilized society. II must
be remembered tsiat n was only after
the first year OF the war that Great
Britain Increased her income tax TO tho
maximum OF 81 per cent. and that
even now in the fourth year Of the war
The income tan does not exceed f2il
per cwut
IL could easily be shown that a tnx
with rates on moderate Incomes sub
siantinlly lcss than IN Great Britain.
aud on the larger incomes about ~
high. would yield only slightly less than
The ssIf2.opo.r0o originally estimated In
the llouse bin.
IL Is TO be hoped that the Senate viii
reduce the total rate ou the highest IN.
comes 70 a per cent. or AZ most 10 -
per cent. and that at the same time u
win reduce the rate on the smaller II.
comes derived from personal or profes.
sional earnings.
N the war continues we shalI have 20
depend moro and more spon the in
come Tax. ~ Imposing excessive rates
now ~s are not only sndangsring the
fs.ure. bot are inviting all manner 81
difficulties which even orss. Britain
hss been abba 40 escape.
Conclusion.
The House bill contains other fnnda.
menial defects which may be summed
up as follows.
Cd II pursues an erroneous principle
In imposing retroactive taxes.
ca II selects an unjust and nnwork.
able criterion for tho exeess-pronis tar.
Ga IL proceeds 10 an unheatd-ot
height IA The income tax.
a. IL imposes unwarranied burdens
upon the consumption OF the commu.
nifty.
f51 II f. calculated to throw business
into confusion by leyying taxes on groas
receipts Instead OF upon commodities.
t0l IL falls TO make a proper uss Of
stamp taxes.
ca IL follows an unscientihc system
In It's fat rate on imports.
tsJ IL includes multiplicity OF pet
~ and anlucratiye taxes. the yexatious-
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:
Cd The amount OF new taxation
should be limited 10 81 5000 OOo-or
at the outset 10 s1.500.o00Oo0. To do
more than this would be AZ unwise as
IL Is unnecessary. To do even this
would be 10 do more than has ever
been done 10y any civilized Govern
ment Ia time of stress.
ca The cxcess-profiis tax based upon
a sound system ought to yield about
$500 100000.
80 The income-tax schedule ought To
be revised with a lowering OF the rates
on earned incomes below $1,000. aud
with an analogous lowering OF the
rates on the higher incomes. 80 ms not
To exceed - per cent. careful cab
culailon shows that nm income tax OF
this kind would yield some Ss5oOOo.
600 additional.
~ The tax on whisky and tobacco
ought to remain approximately as II II.
with Yield OF about s230.000.O00.
These three taxes. together with the
stamp tax at even the low rate OF the
House bill. and with an improved au- n
tomobile tax. Will yield over 1890 /
OOO.OO0 which Ia fha amounf of rnoney II