The Ontario Argus. (Ontario, Or.) 1???-1947, 1917-06-21

NtiDts UT thpilui lnNtstcu.
(D 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. IL Is essential. 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.
CO.. The excess profits which are due
10 the war constitute the most obvious
and reasonable source OF revenue dur
Ing war times. But the principle upon
which these war.proht taxes are laid
must be equitable In theory and easily
calculable in practice.
The Proposed Income Tax.
The additional income tax as passed
by the House runs up 10 n rate OF 90
per cent. This In n sum unheard OF In
the history OF civilized society. Il must
be remembered that II was only after
the irst 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 tar does not exceed 42lk
per cent.
IL could easily be shown that a tax
with rates on moderate incomes sub
stantially less than IN Great britain,
and % the larger Incomes about as
| high, would Yield only slightly less than
the s532, 900, 900 originally estimated IN
the Houte bin. TTr--a
II Is to be hoped that the SENATE VII
reduce the total rate on the highest Ia.
comes to "a per cent. or at most 10 40
per cent, and that at the same time II
will reduce the rate ON the smaller In.
comes derived from personal or profes.
sional earnings.
N the war continues We shsli have 10
depend more and more upon the In
come tss. By imposing excessive rates
now We arc not only sndsnasrina the
future, but are inviting all manner of
difficulties which even Great Britain
hes been able 10 escape.
conelusion.
The House bill contains other funda-
mental defects which may be summed
up ns follows;
% IL pursues an erroneous principle
In imposing retroactive taxes.
(2) II selects an unjust aud unwork-
able criterion for the excess-pronts tax
CD II proceeds 10 an unheard-of
height In the income tar.
90 IL imposes unwarranted burdens
upon the consumption OF the commu'
nifty.
(5) IL Is calculated TO throw business
into confusion by ieyylng taxes ON grcs.
receipts instead of upon commodities.
(6D IL fails 10 make proper use OF
stamp taxes.
"a II follows an unscientinc system
In its nat rate ON imports.
(S) ID includes multiplicity OF pet
" aud unlucrafive taxes. the vexatious-
ness OF which Is ont OF all proportion TO
the revenue they pro'lnce.
The fundamental lines on which the
House bill should be modified are sum
med up herewith;
uD The amount OF new taxation
should be limited 10 81 go, 900 OO0-or
at the outset TO 81 Sl.5OO.O0O.O00. To do
more than this would be as unwise as
Il Is unnecessary. To do even this
would be 10 do more than has ever
been done by any civilized Govern
ment IA time OF stress.
CD The excess-profts tax based upon
sound system ought to yield about
$500. 100000.
(3l The income-tax schedule ought to
be revised with lowering OF the rates
on earned incomes below $4,000, aud
with an analogous lowering OF the
rates on the higher incomes, so as not
10 exceed "a per cent. A careful cal
eulation shows that an income tax OF
this kind would yield some S45OOOO.'
600 additional.
"a The tax ON whisky aud tobacco
ought 20 remain approximately as IL Is,
with Yield OF about $23O. 100000
These three taxes. together with the
stamp tax at even the low rate OF the
House bill. and with an improved au-
AbuiUbAit AdAs wiz 9i'ih OftA FAf~''f'
100000. which Is the amount Of money
thought desirable
The above program would be In har
mony with an approved scientific sys
tenn. II Will do away with almost all
OF the complaints that are being urged
against the present. II viii refrain
from taxing the consumption Of tho
poor.
IL will throw far heavier burden
upon the rich, but viii not go 10 the
extremes OF cOniiscatiOn. II win oh
yiate Interference with business and
will keep unimpalred the social pro
ductiviiy OF the community.
II will establish a just balance be
tween loans and taxes and Will not
succumb to the danger Of aDproacllina
either the tax-only policy or the loan
only policy. Above all. II will keep AZ
undlsturbed elastic margin. which