Crittenden record-press. [volume] (Marion, Ky.) 1909-191?, 1917-06-14


whole community so ms 10 cause each
individ to share In the sacrifices ac-
cort,lnC TO his ability TO pay and ac'
cOrding TO his share In the Government
- Taxes on consumption, which are
necessarily borne by the community at
large. should be imposed as far as pos
sihlc on articles OF quasi-luxury rather
than ON those Of necessity
,(N Er">'s should hc imposed ms Tar
as possible upon commodities in the
hands Of the final consumer rather
than upon the articles which serve pri.
mnrily as raw material fur further
production
90 Taxes upon business NhoaiU hc
m?osed rs far MS possible o., % net
earnings rather than upon gross re-
ceipts or capital invested,
% Taxes upon income which will
pecessa rlly he 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
az to lead 10 evasion, administrative
| difficulties, or TO the more fundamental
objections which have been urged
above.
Co The excess profits which are due
TO the war constitute the most obvious
and reasonable source ~ revenue dur
| ing war times. But the principle upon
which these war-proht taxes are laid
must be equitable IN theory aud easily
calcunblc in practice.
Tho Proposed INCOME Tax.
The additional income tax MS passed
by the House runs up 10 a rate Of %
per cent. This is sum unhcard Of In
the history Of civilized society II must
he remembered that II was only after
the first year Of the war that Great
Britain increased her income tax 10 the
maximum Of % per cent, aud that
even now In the fourth year Of the war
the income tax does not exceed I2la
per cent
II could easily be shown that a tar
with rates on moderate incomes sub
stantlalS less than in Great Britain.
and on the larger incomes about as
high, would yield only slightly less than
the S532, 10000 originally estimated In
the House bill
II Is 10 be hoped that the Senate will
reduce the total rate on the highest In.
cones 10 - per cent. or NJ most 10 10
per cent. aud that nj the same time II
will reduce the rate On the smaller In
comes derived from personal or prOies.
sional earnings.
" the war continues we shall have TO
derend more and more upon the In.
GENE tax BY imposing excessive rate,
now we are not only endsngerirs the
future, but are inviting all manner OF
difficulties which even Great Britain
has been able 20 escape.
Conclusion
The House bill contains other funda-
mental defects which may be summed
up Hs follows:
% II purSucs mn erroneous principle
In imposing retroactive taxes.
e. II selects an unjust and unwork.
able criterion for the excess profits tax.
O. II proceeds to an unheard OF
height In the Income tax.
a. II imposes uHwarranted burdens
upon the consumption 81 the commn-
nifty.
(jl II IL calculated 10 throw business
into confusion hy levying taxes on gross
receipts Instead ~ upon commodities.
CN II fails 10 make proper use OF
stamp taxes
a II follows an unsclcntl6c system
In its fat rate on imports
o. II includes n multiplicity - pet.
" and unlucrative taxes. the veIntious-
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 W herewith:
a. The amount ~ new taxation
should be limited to si.250 ono .000-or
at the outset to 81 10000 To do
more than this would be ns unwlsc as
II II unnecessary To do even this
would be- Ia do more than has ever
been done 10y amy civilized Govern.
mcnt IN time ~ stress
~ The excess.pronts tax hascd upon
sound system ought TO yield about
SgapOGO
O. The income.tax schedule ought IA
be revised with n lowering 81 the rates
OH earned lncones below $4,000. and
with un analogous lowering ~ the
ntes on the higher incomes. so rs not
d exceed "a per ccpi 4 careful cal
culntioH shows that an income tax 81
this kind would yield some fiJ0,Ooo,.
600, additional
az The tax on whisky and tobacco
ought 10 remain approximately ms Il Is,
with a yield Of about So30,0o0,0oo.
These three taxes. together with the
stamp tax at even the low rate Of the
House bill. and with an improved au'
tomobile tax. win yield over $3.50.
Oo0,0o0. which Is the amount Of money
thought desirable.
The above program would he In har.
mony with an approved scientific sys.
ten. II will do away with almost all
Of the complaints that are being urged
against the present II will refrain
from taxing the consumption Of tho
poor.