The Bossier banner. [volume] (Bellevue, Bossier Parish, La.) 1859-1952, 1917-06-14
In considering the apportionment Of

spread as Tar as possible oNeE IKE
whole community so as to cause each
individual to share in the sacrifices &C
cofGing to his ability to ray and nc
cording to.liis share in the Government.
q, Taxes on consumption. which are
necessarily borne by the community Mt
large. should lie imposed rs far a.; pos
sibIc Gil articles Of s,,,si-!;lxury rather
than Gil these Of necessity.
81 Excuses siiculd be imposed rs far
as possible upon commodities IN tha
hands Of the final consumer rather
than upon tie articles which serve pri-
marty as raw material for further
production.
a. Taxes upon business should be
imposed as far as possible upon net
earnings rather than upon gross re-
ceirts or capital invested.
G., Taxes upon income which will
me- rssar:l.- he severe should he both
Differentiated and graduated. That Is.
there should b, q distinction between
earned and unearncd incomes and there
should be a higher rate upon the larger
incomes. II Is essent nj, 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.
(G) The excess profits which are duo
to the war constitute the most obvious
and reasonable source Of revenue dur
ing war times. But the principle upon
which, these war-protlt taxes arc laid
must be equitable III theory and easily
calculablc In practice.
The Proposed Income Tax.
The additional income tax ns passed
by the House runs up to rate OF 80
per cent. This ia sum unllcard OF in
the history Of civilized society. 1t must
be remembered that 1t 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 tax does not exceed 4215
per cent
1t could easily he shown thut q tax
with rates on moderate incomes sub
| stantially less than in Great Britain,
and on the larger incomes about as
| high, would yield only slightly less t.aan
the $500, 100000 originally estimated in
the House bill.
1t is to be hoped that the Senate win
| reduce the total rate on the highest In
| comes to 81 per cent. or at most to 40
| per cent, and that Mt the same time It
| will reduce the rate on the smaller In
t"a,ncs derived from personal or profess
| sional earnings.
II the war continues we shall have to
| depend more and moro upon the in
como tax. By imposing excessive rates
row we are not only endan3ering 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
up as follows:
"a 1t pursues an erroneous principle
in imposing retroactive taxes.
(2) 1t selects an unjust and unwork-
able criterion for the cxcess-proflts tax.
81 It proceeds to an unheard-of
height in the income tax.
"a It imposes unwarranted burdens
upon the consumption of the commu.
nifty.
(5) 1t is calculated to throw business
| into confusion by !evying taxes on gross
receipts instead of upon commodities.
(6) It fails to make a proper use of
stamp taxes.
"a 1t follows an mscientific system
In its fiat rate OH imports.
(S) 1t includes 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 bin should DO modified are sum-
med UP herewith:
| "a The amount Of new taxation
should be limited to 81, go, OOO. OOO-or
Mt the outset to $780, 100000. To do
more than this would be as unwise as
1t Is unnecessary. To do even this
would he to do more than has ever
been done by any civilized Govern
ment in time Of stress.
(2) The cxcess-profits tax based upon
sound system ought to yield about
$500. 100000.
(3) The income-tax schedule ought to
be revised with lowering Of the rates
on earned incomes below $4,000, and
with al 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 $3.50 Co.,
coo additional.
(4 The tax on whisky and tobacco
ought to remain approximately as It IL,
with yield Of about $3.50, 100000.
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 gys-
ten. 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 q far heavier burden
npon the rich, but will not go to the
extremes OF confiscation 1t will OBJ
rate interference with business and
will keep unimpaired the social pro-
ductiyity Of the community.
1t will establish just balance be-
tween loans and taxes and viii not
succumb to the danger of approaching
either tie tax-only policy or the loan