Monroe City Democrat. (Monroe City, Mo.) 1888-1919, 1917-07-06

are definitely established:
How Taxes Should Be Apportioned.
% The burden of taxes must h
spread as far as possible over tn
whole community so as to cause eacl
individual to share in the sacrifices ac
,cording to his ability to pay and ac
cordins to his share IN the Government
(e) Taxes on consumption, which ar,
necessarily borne by the eonlinunity a
large, should be imposed IS far as pos
siblc on articles Of quasI-luHury rather
than on those of necessity
80 Excuses should be imposed as fan
as possible upon commodities in tn
hands Of the final consumer rather
than upon the articles which serve pri-
marily as raw material for further
! production
"a Taxes upon bushes should he
imposed as far as possible upon net
earnings rather than upn gross re>
ceipts or capital invested.
90 Taxes upon income which will
necessarily he severe shOsd lie both
differentiated and graduaied. That is.
there should be a distincn0 between
earned and unearned moons and there
should be higher rate upa the larger
incomes. II is essential, hNeNcr, not
10 make the income rate . excessive
as TO lead TO evasion, administrative
difficulties, or TO the more fundamental
objections which have hen urged
above.
10 The excess profits With are due
10 the war constitute the rSt obvious
and reasonable source Of R'ehue dur
ing war times. But the phaeiiIe upon
which these war-prUfit taIH are laid
must be equitable in theOr and easily |
calculablc In practice.
Tho Proposed incors1as.
The additional income tzI Is passed !
by the House runs up totraie Of "a
per cent. This Is a sum uiasard of III
the history Of civilized socisy. II must
he remembered that 1t wal snly after
the first year of the war bat Great
Britain increased her incoD, Tax 10 the
maximum of 81 per cent and that
even now in the fourth year athe war
the Income tax does not exceed AZ
per cent.
1t could e. lily be shown Cat tax
with rates on moderate hDncs sub
>tantially less than in GnIi Britain.
and on the larger income about as
high, would yield only slightg less than
he S'.:2,11,uo0 originally esdnated in
the House bill.
II Is to be hoped that the snate will
reduce the total rate on the highest j.
ONES TO 81 per cent. or at most TO Al
Der cent. and that at the sae tir :, .,
viii reduce the rate on the snal a.
ONES derived from personar -
,ional earnings. p0-'
II the war continues we s N
iepend more and more vi nave 10
:ome tax. BY imposing lhs N.
low we are not only 80
uture, but are inviti r'ns VIZ
lit;cuI+;e. ,ub;.b hg all ns inner OF
as b.sn III. ~ ven Gnt Britain
III, H. .,elusion,
-, us Us, !" Il contains sier funda.
= a~ - which may BE Summed
, ;mnot; nSncs an erreoeOus principle
90, +. ma retroactive taxes.
hIn selects an unjust md unwork-
az. Fiction for TIN. excesspOfits tax.
II proceeds to an unbeard-o OF
-iSh; in the incU ne tax.
~ Ii imposes lnwarrautea burdens
upon the consur lption Of the COMMIT
nifty.
"' IL Is Gale .ulated to throw business
- ~ ,''' 'Hi'' by levying taxes on gross
.'tS ms" .ad of upon commodities.
w. iaif to make a proper use Of
'tanp taxf q
=, " II ~ lows an unscientac system
ITS naf rate on imports.
S' II includes a multiplicity OF pet
" ana unlucrative taxes, the yexatious-
n'sS'' # which is out of allproportiOn to
thy .evenue they produce
he fundamental lines % which the
y Ouse bill should be modified are sum
ned up herewith:
ID The amount Of new taxation
should be limited to s1.2JOOO O0O-or
at the outset TO S1,5OO,t0OO To do
more than this would be Is unwise as
it 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.
O. The excess-prOfits tax based mon
4 sound system ought to yieId about
S5O0000,OOO.
81 The income-tax schedule ourht to
be revised with lowering q, tho rates
on earned incomes below s1oooo and
with an analogous lower,n, ~ the
rates on the higher incomes 40 nc not
to exceed 81 per cent. A s,ofu, cal
| glIlatipn cbnr-C