The Little River news. (Ashdown, Little River County, Ark.) 1897-current, 1917-06-16

which these war-proft taxes are laid
calculable in practice.
The Proposed Income Tax.
The additional income tax as passed
by the House runs up to rate OF III
per cent. This is a sum unheard of IL
the history of civilized society 1t mus
be remembered that it was only aftei
the first year of the war that Great
Britain increased her income tax to the
maximum of 81 per cent, and thai
even now in the fourth year of the wal
the income tax does not exceed 421.
per cent.
It could easily be shown that tax
with rates on moderate incomes sub
stantially less than in Great Britain
and on the larger incomes about ms
high, would yield only slightly less thar
the $500, 100000 originally estimated in
the House bill.
1t is to be hoped that the Senate vii
reduce the total rate on the highest in
comes to 81 per cent, or at most to At
per cent, and that at the same time il
will reduce the rate on the smaller in
comes derived from personal or profes
SiOnal earnings.
II 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
future, but are inviting all manner Of
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:
% 1t pursues an erroneous principle
in imposing retroactive taxes.
(2) 1t selects an unjust and unwOrk.
able criterion for the eXcess-prOfits tax
90 1t proceeds to an unheard-oi
height in the income tax.
a. 1t imposes unwarranted burdens
upon the consumption Of the cOmlnu
nifty.
% 1t is calculated to throw business
into confusion by levying taxes on gross
e. 1t fails to make a proper use OF
stamp taxes.
% 1t follows an unscientific system
in its fiat rate on imports.
81 1t includes a multiplicity of pet
ty and unlucrative taxes, the veXatious
ness of which is out of all proportion ia
the revenue they produce.
The fundamental lines on which the
House bill should be modified are sum
med up herewith:
O) The amount Of new taxation
should be limited to $3.50, 0OO,OOO-oI
at the outset to $1,5O0,000,0OO. To dc
more than this would be as unwise as
1t 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 excess-profits tax based upon
a sound system ought to yield about
$5OOOOO,OO0.
g. The income-taX schedule ought to
be revised with lowering Of the rates
on earned 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 $3.50. 0OO,.
600 additional.
a. The tax on whisky and tobacco
ought to remain approximately as 1t Is,
with yield of about $230,0OO,OO0
These three taxes, together with the
stamp tax at even the low rate Of the
House bill, and with an improved au'
tomobile tax, will yield over $780,
OOO, 1000, which Is the amount of money
thought desirable.
The above program would lie in har-
mony with an approved scientific sys-
TEN. 1t will do away with almost all
Of the complaints that are being urged
against the present. 1t will refrain
from taxing the consumption of the
poor.
1t will throw a far heavier burden
upon the rich, but will not go to the
extremes Of confiscation. 1t will OBJ