The Bridgeport evening farmer., 1917-06-13
How Taxes Should Be Apportion.d.

WHole community so as to cause 3each individual to share in the sacrifices cc- cording 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 sible on articles of quasi-luxury rather than on those of necessity.
 (9 Excises should be imposed IS 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.
 t4 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 distinction between earned and unearned incomes and there should be higher rate upon the larger incomes. It is essential, however, not to make the income ratA so, excessive as to lead to evasion, administrative difficulties, or to the more Fundamental objections which have been urged above.
 @ 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 easily calculable in practice.
 The Proposed ineons Tax
 The additional income tax as passed by the House runs up to rate of 60 per cent. This is sum unheard of in the history of civilized socieey. Itmrst be remembered that it was only after the first year of the war that Great Britain increased her income tax to the maxiErm of 34 per cent, and that even now in the fourth year of the war the income tax does n6esexceed 42h per cent. =, 4&s
 It could easily be shown that a tax with rates on moderate incomes sub stantfally less than in Great Britain. and on the larger incomes about as high, would yield only slightly less than the $532, GOO, 900 originally estimated in the House bill. fs
 It is to be hoped that the Senate win reduce the total Fate on the highest tn- comes to 34 per cent, or at most to 40 per cent, and that at the same time 1t will reduce the rate on the smaller fn- comes derived from personal or profes- sional earnings.
 { If the war continues vve shall have to depend moro and more upon the in- come tax. By imposing excessive rates now we arc not only endangerins the future, but are inviting all manner of difficulties which even Great Britain has been able to escape.
 conclusiou-
 The House bill contains other funda- mental defects which may be summed up as follows:
 CD It pursues an erroneous principle in imposing retroactive taxes
 (2) It selects an unjust and unwork- { able criterion for the excess profits tax.
 (0 It proceeds to an unheard-of height in the income tax
 (4) It imposes unwarrnnted burdens upon the consumption of the ccnmu- nifty.
 (5) It is calculated to throw business into confusion by 1eyying taxes on gross receipts instead of upon commodities.
 (6) It fails to make a proper use of stamp taxes.
 @ It follows an unscientifc system in its flat rate on imports.
 (S) It includes multiplicity of pet ty and unlucrative taxes, the vexatious- ness of which Is out of all proportion to the revenue they produce.
 1H
 The fundamental lines on which the House bill should be modified are sum- med up herewith:
 CD The amount of new taxation i. should be limited to $1,250Q 900, ,O00- -or at the outset to $1 1.50O, 100000. To do more than this would be as unwise as it 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.
 @ The excess-profits tax based upon B sound system ought to yield about $500, 100000.
 S) The income-tax schedule ought to be revised with lowering of the rates on earned incomes below $1oOOO, and with an analogous lowering of the rates on the higher incomes. so as not to exceed 34 per cent. A careful cal. cula tion shows that an income tax of this kind would yield some $450O00.- 900 additional.
 t4 The tax on whisky and tobacco ought to remain approximately as it Is. : with yield of about $230, ,o00, 0,o0o.
 These three taxes, together with the ' stamp tax at even the low rate of the House bill. and with an improved au- tomobile tax, will yield over $1,250,- 100000, which is the amount of money thought desirable.
 The above program would be in har- mony with an approved scientific sys- tenn. It will do away with almost all of the complaints that are being urged against the present. It will refrain from taxing the consumption of the poor.
 It will throw far heavier burden upon the rich, but will not go to kjie extremes of confiscation. It will <ob- viate interference with business and will keep unimpaired the social pro ductivity of the community
 It will establish just balance be- tween loans and taxes and will not to the danger of approaching either the tax-only policy or the loan only policy. Above alI. if win keen an