Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1917-06-21

CHe S4CkaOEuAudry DufOe0s Oh f4XeD y In
war times certain scientific principles
are definitely established:
How Taxes Should 5e Apportiened
"a 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-
cording to his share in the Government.
t2) 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
(3) Excuses should be imposed as far
az 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
a. Taxes upon business should be
imposed as far as possible upon net
earnings rather than upon gross re-
ceipts or capital invested.
(5 Taxes upon income which win
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. 1t 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.
(6) 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-proft 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 to rate Of 60
per cent. This is a sum unheard Of In
the history Of civilized society. It 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 "a per cent. and that
even now In the fourth year of the war
the income tax does not. exceed 4214
per cent -t
1t could easily be shown that a tax
with rates on moderate incomes SUBJ \
less than In Great Britain.
and on the larger incomes about as
high, would yield only slightly less than
the $500 600, 900 originally estimated in
the House bill -.
1t Is to be hoped that the Senate Will
reduce the total rate ON the highest In
comes to "a per cent, or at most to 40
per cent, and that at the same time It
will reduce the rate on the smaller In
comes derived from personal or profess
5iOnal earnings.
II the war continues we shall have to
depend moro and more upon the in
como tax. BY imposing excessive ratss
future, but are inviting all manner Of
difficulties which even Greet Britain
has been. able TO escape. .ea
i hss = a. Conclusion. .aS
The House bill contains other funda-
mental defects which may be summed
lp as follows: 81
a. 1t pursues an erroneous principle
u imposing retroactive taxes.
(2 1t selects an unjust and unwork-
able criterion for the excess-profits tax.
(3 It proceeds to an. unheard-of
height In the income tax.
a. 1t imposes unwarranted burdens
Upon the consumption of the commu-
1ity.
o. 1t fs calculated to throw business
INTO confusion by 1evyfng taxes on gross
receipts instead of upon commodities.
90 1t fails to make a proper use Of |
stamp taxes.
% 1t follows an unscientff1c system !
n its fat rate on imports. |
8) 1t includes a multiplicity of pet |
y and unlucrative taxes, the vexatious- |
less of which is out of all proportion to |
he revenue they produce.
The fundamental lines on which the |
House bill should be modified are sum- |
ned up herewith:
a. The amount of new taxation |
hould be limited to 1850, 600, O0O-or
It the outset to $500, 900. OOO To do |
more than this would be as unwise as
is unnecessary. To do even this |
would be to do more than has ever
'een done by any civilized Govern
nent in time of stress
(9 The excess-profits tax based upon
sound system ought to yield about
500 100000.
(3) The income-tax schedule ought to /
" revised with lowering Of the rates
N earned incomes below $4,000, and +
With an analogous lowering of the i
ates on the higher incomes, so as not
o exceed "a per cent A careful cal
ulation shows that an income tax of
his kind would yield some $3.50 OOO.- Il
90 additional
~ The tax on whisky and tobacco Il
ught to remain approximately as 1t Ia.
With q yield of about $3.50. GOO, 600
Thoeo three taYpa f0OQff1or With thp. |