Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1917-07-07

I o. The burden u taxes must be
spread as far as D0ssible over the
whole community 50 Is 70 cause each
individual to share In the sacrifices ac-
c0Tdlng TO his ability to pay and ac-
coallng TO bis share III the Government.
o. Tsxes on consumption. which are
necessa rjiy borne by the community al
large. should be imposed as far as pos
sible on articles Of qussi-luxury rather
than on those Of necessity.
81 Excises should be imposed as far
as possible upon commodities fl the
Ia uds OF the final consumer rather
than upon the articles which serve pri-
marily as raw material for further
production
(4) 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 win
necessarily be severe should lie both
differentiated and graduated. That is
there should be a distinction between
earned and uneamed incomes and there
should be higher rate upon tie larger
incomes. IL IS essential. however not
to make the income rate 50 excessive
as to lead 10 evasion administrative
/ difficulties, or to tie more fundamental
objections which have been urged
above
90 The excess profits which are due
70 the war constitute the most obvious
and rea sonabIe source OF revenue dur
ing war times But the principle upon
which these e~-proht taxes are laid
must be equita Die Ia theory aud easily
calcuiable in practice.
The Proposed income Tax.
The additional income tax as passed
by the House runs up to a rate OF 90
per cent This Is sum unheard Of IN
| the history Of civilized society II 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 81 per cent. aud that
even noyy In the fourth year Of the war
/ tue income tax does not exceed 42l
per cent.
1t could easily be shown that tax
/ with rates on moderate incomes sub.
/ stautally less than In Great Britain
/ and on the larger incomes about as
! high. would yield only slightly less than
the S532 ooooDo 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 40
| per cent. and that at the same time 1t
/ will reduce the rate on the smaller in
| comes derived from personal or protes-
sional earnings.
| II the war continues we shall have 10
/ depend more and more upon the in.
| come tax. BY imposing excessive rates
/ now Nc are not only endanae~ing 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
! ny as follows
% II pursueS an erroneous principle
| in imposing retroactive taxes
o. 1t selects an unjust aud nwork-
able criterion for the excess profits tax
fof IL AItt'FtAs ~ dA NI1ANhEu-bt
height III the income tax.
a. II Imposes uuwarranted burdens
| upon the consumption II the commu-
| nifty
l5l 1t Is calculated 10 throw business
! into confusion 10y levying taxes on gross
receipts instead OF upon commodities.
90 1t fails 70 make Il proper use Of
stamp taxes
a. 1t follows an unscientihc system
| Ia its nat rate on imports
81 1t includes a multiplicity OF pet
| Is aud unlucratlye taxes. the vexatlous-
ness OF which is ont Of all proportion to
the revenue they produce
The fundamental lines on which the
| House bill should be modified are sum.
! med ~ herewith
| tn Tile amount OF new taxation
/ should be limited to 81 210O0o.O OO-or
/ at the outset 10 $I.5O0oOO 600 To do
more than this would be as unwise as
| it IS unnecessary To do even this
| woald be TO do more than has ever
been done by any civilized Govern
| mcut Tn time OF stress.
- The excess-prohts tax based upon
sound system ought To Yield about
/ S5n 000OO0
/ Ga The income-tax schedule ought to
/ he revised With a lowering of the rates
! on earned incomes below $1,000 and
with an analogous lowering OF the
rates on the higher incomes. So as not
/ 10 exceed "a per cent A careful cal
/ culation shows that an income tax OF
1 this Kind would Yield some $4,000
/ ooa additional
: 4 The tax on whisky and tobacco
ought TO remain approximately as it is.
/ with Yield of about $3.50 0p0u)O.
/ These three taxes. together with the
/ stamp tax al even the low rate Of the
| House bill, and With an improved au-
tomobile tax. win yield over 81 .250.-
ooo,ooo. which Is the amount If money
/ thought desirable
! The above srogram would he in har-