The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1917-06-21

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.. secretary McAdoo had the right ,n.
stInct and highly commendah,s ~. IN
ase In deciding that substa nt;., s ~.
uon, az least, OF the revenues shn~,s
ue derived from taxation. Rut rhn.,
ne nit upon the plan Of 1880 mo, 80 "n."
tnat u.s. OF raising one-half Of all 40
mestlc war expenditures by taxes ~,
question arises whether he did No. ne
too far. e uiu NOT go
Inc relative proportion Of ,osrs =.
ea1es Is after all purely business
proposition. Not to rely to a larya e =
tent on loans at the outset Of a NO. q
a mistake. war IL
Disadvantages of Excessive Taxa.
Inc disadvantages of excessive tayas
&c the outset of the war are as fonows
1. Excessive taxes on consumnt,on
WIN cause popular resentment
=. Excessive taxes ON industr I'm
cisarrange business, damp enthusiasm
ana restrict the spirit of enterprise At
the very time when the onnosito a.
needed. pio'i'e iS
0. excessive taxes on incomes will do
piete the surplus available for invest.
menfs and Interfere with the placing q,
tne enormous loans which win be necas.
sary In any event.
4. Excessive taxes on wealth min
cause serious diminution of tho ,n
comes which are at present largely
drawn upon for the support of educa.
uonai and philanthropic enterprises
moreover, these sources of supnort
would be dried up precisely at the time
wnen the need would be greatest.
| o. Excessive taxation at the out.st a,
the war will reduce the elasticity .v.;i'
apis TOR the increasing demands ths,
are soon TO come.
Great 5ritain's POLICY.
Take Great Britain as an eramplo
During the first year of the war she
increased taxes only slightly. in order
10 Keep industries going at top notch
During the second year she raised by
new taxes only per cent. of her wa,
expenditures. During the third YEA,
she levied by additional taxes love,
and above the pre-war leveD only
slightly more than II per cent. OF he,
war expenses
Ii We should attempt to do as much
in the first year of the war as Great
Britain did in the third year 1t would
suffice to raise by taxation 81 ,25O 600.
600. II. in order to be absolutely or
the safe side, it seemed advisable Il
increase the sum to S1,50OO0O, 900. thi.
should, In our opinion. be the maxi
mum.
In considering the apportionment o.
the extraordinary burden of taxes II
] war times certain scientific principles
are definitely established:
How Taxes Should Be Apportioned.
| "a The burden of taxes must b.
/ spread as far as possible over tn
whole community 50 as to cause eacl
individual to share in the sacrifices &C
cOrding to his ability to pay and &C
cording to his share in the Government
~ Taxes ON consumption, which ar
necessarily borne by the community a
large, should be imposed as far as pos
sible on articles of quasi-luxury rathe
than on those of necessity.
| 90 Excuses should be imposed as ia
as possible upon commodities in tn
hands of the final consumer rathe
than upon the articles which serve pr
marily as raw material for furthe
production.
"a Taxes upon business should b
imposed as far as possible upon ne
earnings rather than upon gross re
ceipts or capital invested.
90 Taxes upon income which vii
necessarily be severe should be bot