Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-04-28


ent income tax exemption.
go A drastic increase in the rates OF
the income tax. with a sharper pro-
erosion In rates as incomes become
larger.
t4) High consumption taxes on lux
urles.
AS 10 the kind of taxes 10 levy. the
professors are right in their recon-
mendations. There should be no profits
made out of munitions above a fair
rental for capital used in their produc
ton. Factories as well as men should
be conscripted in time of war. The
income tax should reach everybody
above the living wage Single men
from 800 per month and upwards AMI
married men from $500 per year and
upwards should always pay an income
tax. in peace as well as in war so that
the congress which expends tax money
viii be accountable to the many ond
not he privileged to plumber the few.
Rates will necessarily have to rise and
surplus incomes beyond any cunceW-
able human need could rightfully be
conscripted for war when the lives and
persons Of other men are being taken
for the national defense, Taxes OF
other kinds should fall upon luxuries
and the things which are not neees-
sary to life and health rather than to
add to the cost OF food and necessary
clothing which have already risen TO
such an extent as to more than equal
any war tax which could be placed
upon them.
The one fundamental error In the
professors reasoning is their failure to
recognize the equity of the principle
of amortization. The American people
have had no big war bill in fifty years
immunity from another big war for an
other fifty years. What is accomplished
by the armies OF today will be a ma
tional asset for at least a generation
Of men. Battle ships, coast guns, rifles
and Notifications built now will be of
value for twenty years. Their cost
should be distributed pro rata over
period approxmating their life.
Bond issues do not defer the eco
nomic cost Of public works for the la
Dor and material used In immediate
production must be paid out by the
population Of today. TO this extent
| the ultimate or economic tax Is paid
at once always But the taxes levied
by government are merely the pro-
cess OF equalizing the sacrifice as be-
| tween man and man. The professors
claim that the men Of today should
| have no equalization Of the war bur-
den in their public finance Borrow
ing temporarily from men who have
surplus wealth stored up In order that
other men may meet their taxes on the
easy payment plan over period Of
years and In order that the men who
pay taxes ten years from now may
share in the sacrifices Of this war, they
say is wrong.
! As professors they are poor business
men. Theoretically and economically
they see that the material and labor
consumed in war must be donated
by the people Of today but they fail to
see that one man today has vast ac-
foundations Of capital while other men
have not and that borrowing from the
one while others may have time in
business policy in order to equalize the
burden. They too, fail to see that the
engines Of defense, the armies trained
and the peace forced by war are assets
Of lasting value even unto future
generation nj producers and that part
Of the cost can justly be borrowed
from the stored up capital Of today to
be paid back by future producers who
are to enjoy the national protection
and peace which are to be purchased
In war today
A government at war must buy a
million rifles. The mechanics of today
must build the rifles no matter how
they are paid for their work.
The professors would demand that
ali other men immediately chip
in with taxes enough to com
pensate the mechanics for their rifles
but il tins government should ssli honda
instead, q few rich bond holders sav-
ings bank depnsitors o. insurance COM
panies would compensate the mschan-
. les now and the chipping in by tax
!. payers would be spread out thin over
= period Of years, the bond mereI,
guaranteeing to those who compen
! stated the mechanics tnat they woa!s
lbe reimbursed ~ the people An thu