The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1917-06-15

''oW id%co SHouIO DC AppoTtIOneo.
% The burden of taxes must be
spread as far as possible over the
Whole community SO as to cause each
individual to share in the sacrifices az
cord1nS to his ability to pay and &C.
corcing to his share in the Government.
% Taxes on consumption, which are
necessarily borne by the community at
large, should be imposed as far as pos
sible on articles Of ~quasi-luxury rather
than on these of necessity.
CD Excuses should be imposed as far
as possible upon commodities in the
hands Of the final consumer rather
than upon the articles which serve pri-
maSly as raw material for further
production.
az Taxes upon business should be
imposed as far as possible upon net
earnings rather than upon gross re-
ceipts or capital invested.
% Taxes upon income which will
necessarily be severe should be both
differentiated and graduated. That is.
there should be a distinction between
earned and unearned incomes and there
should be a higher rate upon the larger
incomes. 1t is essential, however. not
to make the income rate so excessive
as to lead to evasion, administrative
~difhculties, or to the more fundamental
objections which have been urged
above.
+, 60 The excess profits which are due
to the war constitute the most obvious
and reasonable source Of revenue dur
ing war times. But the principle upon
which these w~ar-proft taxes are laid
must be equitable in theory and easily
calculable in practice.
The Proposed Income Tax.
The additional income tax as passed
by the House runs up to a rate Of GO
per cent. This is q sun unheard Of in
the history of civilized society. 1t must
be remembered that 1t was only after
the first year of the war that Great
Britain increased her income tax to the
maximum Of "a per cent, and that
even now In the fourth year Of the war
the income tax does not exceed 42l2
per cent.
1t could easily be shown that a tax
with rates on moderate incomes sub
stantially less than in Great Britain,
and on the larger incomes about As
high, would yield only slightly less than
the $3.50, 10000 originally estimated i'll
the House bill.
1t is to be hoped that the Senate will
reduce the total rate on the highest in.
comes to "a per cent, or at most to 4(
per cent. and that at the same time ii
will reduce the rate on the smaller in.
comes derived from personal or profess
siOnal earnings.
II the war continues we shall have e
depend more and more upon the in
come tax. BY imposing excessive rate,
now we are not only en%daneerino tn,
future, but are inviting all ann o
difficulties which even Great Britai,
has been able to escape.
Conclusion.
The House bill contains other funda
mental defects which may be sumne
up as follows:
90 1t pursues an erroneous principl
in imposing retroactive taxes.
co 1t selects an unjust and unworl
able criterion for the excess-profits tai
60 1t proceeds to an unheard-o
height in the income tax.
(4) 1t imposes unwarranted burden
upon the consumption of the COMMIT
nifty.
90 II is calculated to throw bushes
into confusion by levying taxes on gros
receipts instead of upon commodities.
90 1t fails to make a proper use c
stamp taxes.
90 1t follows an unScientiiic syStei
: in its fiat rate on imports.
: (S) 1t includes "A multiplicity of pc
ty and unlucrative taxes, the veXatiou,
{ ness of which is out of all proportion t
> the revenue they produce.
!. The fundamental lines on which tn
> House bill should be modified are sun
med up herewith:
. Q) The amount of new taxatio
should be limited to $3.50. 1000
at the outset to 81, 100000. To q
more than this would be as unwise ;
~ ID unnecessary ~ w CNCh III
would be to do mere than has eve
been done by any civilized Cover
ment In time of stress.
(2) The excess-profits tax based upC
a sound system ought to yield abol
$5OO,W0,O0O.
81 The income-taX schedule ought
: be revised with q lowering Of the rat,
on earned incomes below $4,000. an
l with an analogous lowering of II
= rates on the higher incomes. so as N
to exceed "a per cent. 4 careful ca
culatiOn shows that an income tax
this kind would yield some Si5O.00C
GOO additional.
a. The tax on whisky and tobacC
ought to remain approximately as it /
{ with a yield of about $3.50, 100000.
: These three taxes. together with I'll
stamp tax at even the low rate of I'll
t House bill. and with an improved al
tomobile tax. will yield over S1,250
! 100000. which is the amount of none