The herald-advance. (Milbank, S.D.) 1890-1922, 1917-07-06
Wanted good competent
girl for work IN hotel at Linden
Beach. Apply by telephone to
Elmer Ball,
How Take. Should b Apportioned.

JluIVluudl 10 snare III ~ SHCTllCVS HC-
cording to his ability to pay and ac-
eording to his share in the Government.
60 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 IN those Of necessity.
90 Excuses should he 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 unearnel incomes and there
should be a higher rate upon the larger
incomes. 1t is essential. however, not
to make the income rate 70 excessive
as to lead to evasion, administrative
difficulties, or to the more fundamental
objections which have been urged
above. -Eie~t
Co 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-profit taxes are laid
must be equitable in theory and easily
~caleulsslL!l!ss Il practice.
The Proposed Income Tax.
Tie additional! income tax as PASSED
by the House runs up to q rate Of 60
per cent. This is a sum nnheard Of in
the history of civilized society. It 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
the income tax does not exceed AN
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 $685. 600 originally estimated in
| the House bill.
1t is to be hoped that the Senate will
reduce the total rate on the highest In
m to 81 per cent, or at most to 40
per cent, and hat at the same time It
will reduce the rate on the smaller In
ZONES derived from personal or profess
sional earnings.
1t 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 endangerino the
future, but are inviting all manne Of
difficulties which ever Great Britain
has been able to escape.
Conclusion.
The House bill contains other funda-
mental defects which may be summed
UP as follows:
a. 1t pursues an erroneous principle
in imposing retroactive taxes.
(2) It selects an unjust and unwork-
able criterion for the eycess-profits tax.
% 1t proceeds to an %unheard-of
height in the income tax.
- AAiij3'ES' ~ DuIICIIS
upon the consumption Of the commu-
nifty.
() 1t is calculated to throw business
into confusion by levying taxes on gross
receipts instead of upon commodities.
Co 1t fails to make q proper use Of
stamp taxes.
ca 1t follows an unscienti1ic system
In its fiat rate on imports.
81 1t includes a multiplicity Of pet
~ and u~nlucrative 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. The amount OF new taxation
should be limited to $3.50, OOO,0OO-or
at the outset to $1,5O0,O 600, 900. To do |
than this would be as unwise as
It is unnecessary. To do even this
would be to do more than has ever
been done by any civilized Govern
In time Of stress.
ca The excess-prOfits tax based upon
4 sound system ought to yield about
$500, 100000.
() The income-tay schedule ought to
revised with a lowering Of the rates
III earned incomes below $4,000, and
With an analogous lowering Of the
'ates on the higher incomes, so as not
o exceed "a per cent. A careful cal
'ulation shows that an income tax of
his kind would yield some $45O,OOO.-
700 additional.
"a The tax on whisky and tobacco
ought to remain approximately as it is.
With a yield OF about $3.50 100000.
These three taxes, together with the
tax at ever the low rate of the
louise bill, and with an improved au-
omobile tax, will yield over $780,
100000, which is the amount Of money
bought desirable.
The above program would be in har-
lOny with an approved scientific sys.
It will do away with almost all
t the complaints that are being urged