Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1917-06-22

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and above the pre-war leveD only
slightly more than II per cent. Of her
war expenses.
If we should attempt to do as much
in the first year of the war as Great
Britain did in the third year 1t would
suffice to raise by taxation $1,250,OOO.-
600. If, in order to be absolutely on
the safe side, it seemed advisable to
increase the sum to $1,5OO.OOO,OOO, this
should, in our opinion, be the maxi
mum.
I'm considering the apportionment Of
the extra ordinary burden of taxes In
a times certain scientific principles
are definitely established:
How Taxes Should Be Apportioned.
a. The burden of taxes must be
spread as far as possible we 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.
(2) Taxes on consumption, which are
necessarily borne by the community at
large, should be imposed as far as pos
sible on articles of quasi-luxury rather
than on those Of necessity.
90 Excuses should be imposed as far
as possible upon commodities in the
hands Of the final rather
than upon the articles which serve pri-
marily as raw material for further
production.
(4) 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 a distinction between
earned and unearned incomes and there
should be q higher rate upon the larger
incomes. 1t is essential, however, not
to make the income rate so excessive
al to lead to evasion, administrative
difficulties, or to the more fundamental
objections which have been urged
above.
'(8) 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 and easily
calculable in practice.
Tbs Proposed Income Tax.
The additional income tax as passed
by the House runs up to a rate Of go
per cent. This is a sum unheard of in
the history Of Civilized society. 1t must
be remembered that 1t vas only after
the first year of the war that Great
Britain increased her income tax to the
maximum of "a Per cent. and that
even now In the fourth year of the war
the income tax does not exceed 42N.
per cent.
1t could easily be shown that a tax
with rates on moderate incomes sub.
stanttally less than. in Great Britain,
and on the larger incomes about as
high, would yield only slightly less than
the 1892, 0,o0O originally estimated in
the House bill.
1t 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 it
will reduce the rate on the smaller in
comes derived from personal or profes.
yional earnings.
IL the war continues we shall have TO
iepend more and more uron the in.
come tax. BY imposing excessive rates
low we are not only e%ndangering 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
M as follows:
% 1t pursues an erroneous principle
IN imposing retroactive taxes.
(2l 1t selects an unjust and unwork-
able criterion for the excess-profits tax.
(3l 1t proceeds to an unheard-of
height In the income tax.
az 1t imposes unwarranted burdens
upon the consumption Of the commu-
nifty.
90 It Is calculated to throw business
into confusionib by levying taxes on gross
receipts instead Of upon commodities.
60 It fails to make a proper. use Of
stamp taxes.
% It follows an unscientinc system
in its dat rate on imports.
81 It includes q multiplicity Of pet
ty and unlucrative taxes, the vexatious.
ness Of whichis out Of al proportion to
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