Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1917-06-22


In considering the superintendent o1
the extraordinary burden of taxes II
war times certain scientific principles
are definitely established:
How Taxes Should Be Apportionsd.
~ The burden OF taxes must be
spread as far a. possible over the
whole community so 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
20 Taxes on consumption. which are
necessarily borne by the community al
large, should be imposed as far as pos
sible on articles OF quasiluxury rather
than on those OF necessity.
80 Excuses should be 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 ne:
earnings rather than upon gross re
ceipts or capital invested.
10 Take, upon income which win
necessarily be severe should be both
differentiated and graduated That is,
there should be distinction between
earned and unearned incomes and there
should be a higher rate upon the larger
incomes II Is essential. however. not
to make the income rate so excessive
as to lead 10 evasion. administrative
difficulties, or to the more fundamental
objections which have been urged
above.
o. 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-proft taxes are laid
must be equitable in theory aud easily
calculable in practice
The Proposed Income Tax.
The additional income tax as passed
by the House runs up 10 a rate Of 50
per cent. This is a sum unheard OF in
the history of civilized society. IL 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, and that
even now IN the fourth year Of the war
the income tax does not exceed 421lz
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 1892 100000 originally estimated in
the House bill.
1t Is to be hoped that the Senate viii
reduce the total rate on the highest In
comes TO "a per cent. or at most to 20
per cent. and that at the same time II
will reduce the rate on the smaller in
comes derived from personal or profes-
sional earnings.
II 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 endsneering 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
O. 1t selects an unjust and unwork-
able criterion for the profits tax
g. 1t proceeds 10 an unheard-of
heiohr In the income fax
"a 1t imposes unwarranted burdens
upon the consumption Of the commu-
nifty.
(5 1t is calculated TO throw business
into confusion by levying taxes on gross
receipts instead OF upon commodities
Co 1t fails TO make a proper use Of
stamp taxes.
ca 1t follows an unscientiic system
in its nat rate on imports.
(sl Ii includes a multiplicity Of pet
ty and unlucrative taxes. the ve1atiOus-
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:
u The amount of new taxation
should be limited TO s.. go, 00o.00o-or
at the outset to $500, 10000. To do
more than this would be as unwise as
1t 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
{ sound system ought 70 yield aboul
g. The income-tax schedule ought 10
be revised with lowering Of the rates
On earned incomes below $4,000. and |
With an analogous lowering OF the l
-ates on the higher incomes. so as not /
20 exceed 81 per cent A careful cal |
-ulatioD shows that an income tax OF 1
his kind would yield some $4,000
100 additional
"a The tax On whisky and tobacco /
,ught TO remain approximately as IL Is.
With a yield OF about $o3oO00OOo
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