Lincoln County times. (Jerome, Idaho) 1911-1919, 1917-06-21


war times certain scientific principles
are definitely established:
How Taxes Should Be Apportlonsd.
a. The burden Of taxes must be
spread as far a. possible over the
whole community 50 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.
(2) Taxes on consumption, which are
necessarily borne by the community at
large, should be imposed as far AZ pos
sfDle on articles OF quasi-luxury rather
than on those OF necessity.
go Excuses should be imposed as far
Rs 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 distinction between
earned and unearned Incomes and there
should be higher rate upon the larger
incomes. II is essential, however, not
To make the income rate So excessive
as TO lead ~ evasion administrative
difficulties, or to the more fundamental
objections which have been urged
above.
90 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
calculable in practice.
The Proposed Income Tax.
The additional income tax as passed
by the House runs up To Il rate Of 90
per cent This is sun unheard OF III
the history Of civilized society II must
be remembered that 1t was only after
the first year Of the war that Great
Britain increased her income tax 10 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 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 900. 900 originally estimated In
the House bill.
IT 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 profes-
sional earnings.
/ " tho war continues we shall have to
depend moro 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 be summed
up as follows
~ 1t purSues an erroneous principle
In imposing retroactive taxes.
(2l II selects an unjust and unwork
able criterion for the excess profits tax
81 II proceeds 10 an unheard of
height In the income tax
a. IL imposes unwarranted burdens
upon the consumption ~ the commu-
nifty.
90 1t is calculated to throw business
o..
receipts instead OF upon commodities.
90 II fails To make proper Use OF
stamp taxes
"a II follows an unS 'icntifc system
in it, fat rate on imports
(Sl Ii includes II multiplicity OF pet
~ and unlucrative taxes. the vexatious-
ness of which is out OF all proportion 10
the revenue they produce.
The fundamental lines on which the
House bill should he modified are sum
med up herewith:
a. The amount OF new taxation
should he limited To 81. 80 .OoO. OO0-or
at the outset 10 $1,000 nNO To do
more than this would be as unwise as
II is unnecessary To do even this
would be to do more than has ever
been done by any civilized Govern
ment In time of stress
ca The excess profits tax based upon
a sound system ought to yield about
$500. 100000
Ga The income-tax schedule ought To
be revised with II 1OwCring of the rates
ON earned incomes below $1,000. and
with an analogous lowering Of the
rates on the higher incomes. 81 as not
to exceed 81 per cent \ careful cal
culation shows that an income tax Of
this kind would WELD some S45,AO0O =
900 additional
"a The tax ON whisky and tobacco
ought To remain approximately as II Is.
with yield of about S230,OoO.ON0
These three taxes. together with the
stamp tax at even the low rate of the
House bill. and WITH an improved tsu-
tomObile tax will WELD over 81 30 =