Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1917-06-14

are definitely established:
How Taxes Should Be Apportionsd.
% 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 &C
cording to his ability to pay and &C.
cording to his share In the Government
ca Taxes on consumption, which are
necessarily borne by the community at
large, should be imposed as far as pos.
sibls on articles Of quasi-luxury rather
than on those Of necessity.
80 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-
marily as raw material for further
production.
"a 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 higher rate upon the larger
incomes. 1t is essential, however, not
to make the income rate so excessive
as to lead to evasion. administrative
difficulties, or to the more fundamental
objections which have been urged
above.
e. 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 war-protit 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 rate Of 90
the history of civilized society. 1t must
be remembered that it 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
per cent.
1t could easily be shown that q 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 S532 100000 originally estimated in
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 ~
per cent, and that at the same time it
will reduce the rate on the smaller in
comes derived from personal or profess
sional earnings.
If 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 endaneering 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 he summed
up as follows:
i'm imposing retroactive taxes.
(2) 1t selects an unjust and unwOrk-
able criterion for the excess profits tax.
90 1t proceeds to an unheard- OF
height in the income tax.
(4) 1t imposes unwarranted burdens
upon the consumption of the commu-
nifty.
L., l,,l ntn 20 h,te, t,,n
into confusion by levying taxes on gross
receipts instead of upon commodities.
Co 1t fails to make proper use OF
stamp taxes
ca 1t follows an unscientific system
in its hat rate on imports.
(Sl Ii includes Il multiplicity Of pet
ty and unlucrative taxes. the vexatious
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:
a. TIE amount Of new taxation
should he limited to $3.50. 600 .OOO--Or
at the outset to $500. 100000. To dc
more than this would be as unwise As
II il unnecessary, To do even this
would be to do more than has ever
been done by any civilized Govern
mcnt in time Of stress.
CO The cNcess-protits tax based upon
a sound system ought to yield about
$500. 600 600
81 The incomc-taX schedule ought tC
| he revised with Il lowering of the rates
| on earned incomes below $1,000 anG
| with an analogous lowering of the
rates on the higher incomes. So as not
| To exceed "a per cent \ careful cal
| rulation shows that an income tax OF
this kind would Yield some $f50o00.
| lon additional
| "a The tax on whisky and tobacco
| ought 10 remain approximately as 1t Is
! with yield Of about $3.50, COOS 900
! These three taxes. together with the
stamp. tax at even tn" low rate Of tn,
! House hill, and With an improved All
tomohile tax, will Weld over $3.50.
/ 0oo.no0. which is the amount of money