Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1917-06-15

are definitely established:
How Taxes Should Be Apportioned,
G) The burden OF taxes must be
spread as far as possible over the
whole community so as to cause each
individual to share in the sacrifices ac-
cording TO his ability to pay and ac-
cordinS to his share in the Government
70 IaNes on consumption, which are
necessarily borne 10y the community mt
large, should he imposed as far as DOS
slble on articles OF Quasi-hlxury rather
than on those OF necessity.
(3) Excuses should be imposcd MS for
as possible upon commodities in tho
hands of the final consumer rather
than upon the articles which serve pri-
marily as raw material for further
production
(4) III "s upon business shonld he
imposed as far us possible uuon net
earnings rnthrr than upon gross re-
ceipts or capital invested.
(O Taxes upon income which will
necessarily be severe should bc both
differentiated and graduated. That is.
there should be distinction between
earned and uncnrncd incomes and there
should be 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 funds, mental
objections which have been urged
above.
U) 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
calculablc in practice.
Tho Proposed Income Tax.
The additional income tax as passed
by the House runs up to n rate of 60
per cent. This is sum unheard of in
the history Of civilized society. 1t 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 fax docs not exceed 42M
per cent
1t could easily he shown that n tax
with rates on moderate incomes sub
stantially less than in Great Britain.
ana on the larger incomes about as
high. would yield only slightly less than
the S532.000.000 originally estimated i'm
the House bill
1t Is to be hoped that the Senate will
reduce tho total rate on the highest in
comes to 81 per cent. or mt most to 40
per cent. and that mt the same time 1t
will reduce the rate on the smaller in
comes derived from personal or profess
sional earnings.
II the war continues we shall have to
depend moro and moro upon tho in
come tax. BY imposing excessive rates
now we are not only endangering tho
future, but arc inviting all manner of
difficulties which even Great Britain
has been able to escape.
Conclusion.
The House liIi contains other funda-
mental defects which may he summed
up us follows:
% 1t pUrSucS an erroneous principle
i'll imposing retroactive taxes
(2l 1t selects nn unjust and unwork-
able criterion for tile eXccSs.proiits tax.
G) 1t proceeds TO IN mheard-o of
height in the income tax.
CD 1t imposes unwarranted burdens
upon the consumption of the commu-
nifty.
90 1t is calculated TO throw business
into confusion by lcvying taxes OH gross
receipts instead OF upon commodities.
Co 1t fails to make n proper use of
stamp taxes.
"a 1t follows an unscicntifc system
in its fiat rate on imports.
(S) 1t includes n multiplicity of pet
ty and unlucrative taxes, the vexatious-
ness of which is out OF all proportion to
the revenue they produce.
The fundamental lines on which the
House bill should he modified are sum-
med up herewith:
Q The amount of new taxation
should be limited to $l.25O.OOO. OOO-or
at the outset to $1,500.O00.00O To do
more than this would he as unwise as
it is unnecessary. To do even this
would be to do more than has ever
been done by any civilized Govern
mcnt In time OF stress.
(0 The cXcess-proiits tax based upon
n sound system ought to yield about
S500000,0O0.
60 The incomc-tax schedule ought to
be revised with lowering of the rates
OH earned incomes below $4,000. and
with an analogous lowering OF the
rates on the higher incomes, so as not
to exceed 81 per cent. A careful cal
culation shows that an income tax of
this kind would yield some S45OO00.-
900 additional.
~ The tax on whisky and tobacco
ought to remain approximately rs it is.
with yield of about S230,0OO.OOO
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 $780,
100000, which is the amount of money
thought desirable.
The above program would be in har-
mony with an approved scientific sys-
TEN. 1t will do away with almost all
Of the complaints that are being urged