Highland recorder. (Monterey, Highland County, Va.) 1877-1972, 1917-06-15
aaaaa Of tha fas1 FsasNtarF rafHst

maflly as fHN ulilteriais AIor iufthei
production.
a. Taxes upon business should be
imposed as far as possible upon net
earnings rather than upon gross re-
ceipts or capital invested.
(5D 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 a higher rate upon the larger
incomes. 1t is essential. however, not
to make the income rate so excessive
as to lead to evasion. administrative
difficulties. or to the more fundamental
objections which have been urged
above.
60 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 easll!
calculable in practice.
The Proposed Income Tax.
The additional income tax as passed
bv the House runs Up to rate III q
per cent. This is sum unheard or il
the history of civilized society 1t mus
be remembered that ii was only atte
the first year of the war that Grea
Britain Increased her income tax to tn
maximum of "a per cent. and liza
even now in the fourth year of the va
the income tax does not exceed II
per cent.
1t could easily he shown that II
with rates on moderate iacome; 81
stantially less thln III Great Rritii'
and on tie lar,~er Incomes abtut q
high, would yield only slightly less TIA
the 1892. nCO.00a originally estimated j
the House bill.
1t is to lie hoped that the Senate vii
reduce the total rate OIL the highest III
comes to 81 per cent. or Ut most to Al
Der cent. and that at the same time j
will reduce the rate cn. the smaller in
comes derived from personal or profeS
sional earnings.
If the war continues we shall have t;
depend more and more upon the in
come tax BY imposing excessive rates
now we are rot only endangering th'
| future, but are inviting all manner o
difficulties w7ich even Great Britain
has been abe 30 escape. r
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.
(2) 1t selects an unjust and unWork
able criterion for the eScess-profits tax
60 1t proceeds to an 'unheard-o
height in the income tax.
az 1t imposes unwarranted burden
uDon the consumption of the commu
nifty.
90 1t is calculated to throw business
into confusion by levying taxes on gres
receipts instead of upon commodities.
60 1t fails to make proper use o
stamp taxes.
ca 1t follows an unscientific system
in its fiat rate on imports.
(S) 1t includes a multiplicity OF pet
| ty and unlucrative taxes, the vexatious
ness of which is out of all proportion t.
the revenue they produce.
The fundamental lines on which thu
! House bill should be modified are sum
med up herewith:
Q The amount of new taxation
should be limited to 81 ,250,OO0,00O-o
at the outset to $1,500,000,000 To d.
more than this would be as unwise a
| it is unnecessary. To do even thi
would be to do more than has eve
been done by any civilized Govern
ment in time of stress.
81 The excess profits tax based upol
sound system ought to yield abou
$50O.000000.
81 The income-tax schedule ought t.
be revised with lowering Of the rate
on earned incomes below $4,000. ant
with an analogous lowering Of thu
rates on the higher incomes. so as no
to exceed 81 per cent. A careful cal
culation shows that an income tax o
this kind would yield some $4,000,
600 additional.
AZ The tax on whisky and tobacco
ought to remain approximately as 1t is
with yield of about $3.50, 100000.
These three taxes. together with thu
stamp tax at even the low rate Of the
House BILL and with an improved au
tomobile tax, will yield over $3.50,
100000. which is the amount Of money
thought desirable.
h The above program would be in har
mony with an approved scientific sys
tenn. 1t will do away with almost al
of the complaints that are being urged
against the present 1t will refrain
from taxing the consumption Of thu
poor.
1t will throw a far heavier burden
upon the rich, but will not go to tn
extremes of confiscation., 1t will oh
viate interference with business ant
will keep unimpaired the social pro
ductivity of the community. -
It will establish just balance be
tween loans and taxes and will no
/ succumb to the danger Of approachin!
either the taxonly policy or the loan
all IL will kaon Of