The sun., 1917-08-13
PERIL IN BIG TAX ON
INCOMES, SAYS KAHN
Banker Warns Particulars
Against Heavy Levy in
First Year.
INDUSTRY THREATENED
Assessment Must Not Cripple
Trade. Halt Expansion or
Affect Employment
INDUSTRY THREATENED

Distribution Of war taxes on lnron,,.
over period OF years rather rh,n po
imposition Of an excessive tax dg,,rs
the first year is the solution Of the va.
financing problem. according TO Otto u
Kahn of Kuhn. Loeb & co. In A etats.
ment by him which has been issued b,
that company he declares It is i'm tho
public interest that not too great a rsr
should be levied at once The cost n,
the war must be laid according IN the
capacity to bear it," he said eft womb
be fatuous folly and Grass eolGsnness
to wish it laid or endcavor to have II
! laid otherwise. All | am advocating in
effect Is that in the public intcrcs, MOI
too much be exacted at once, that can.
tai in no one year, and especially NOT
during the first year OF the war should
be so excessively taxed az to produce an
unscientific and dangerous strain.
| "Perll to Industry"
"I believe an income tax greatly IN.
creased over the rates heretofore pr..
valling, yet Keeping within the hound,
of moderation, would produce at lea,
! as large a total revenue as an exceed.
! ingly high one. And the consequences
of the economic erro: of placing too
vast a burden direct upon income Would
be more serious, / think, to the people
| in general than to the individuals a..
| rectly concerned.
THE question Of inc individual is -o.
mi iVnp1 IN 1t. NI.tI .
is that no undue strain he placed Inon
that great fund OF capital as ghoe
which is derived from incom,s ot al
kinds.
1T is this fund which in its turn Is
one of the vital forces necessary for Tho
normal activities and progress Of indus.
try. II that fund is suddenly and Zoo
greatly reduced the effect unou ron.
merce and industry is liable 90 be- ahrJI
and whitening.
81 realize but too well that the load
weighing at this time upon wage ,nlurrs
and still more perhaps upon men and
women with moderate salaries is almost
too great to be borne and certainly mucf
greater than IT should be.
what Canada Plans.
But am convinced that rc,I,t .'.
not he found IN taxation Of income n.
, rates without parallel anywhere. az IN
unduly burdens me iUuuS'S VpnN h.s-
-. ! ess activities. ! am convinced thu ur-
tain theories being urged upon Cougrr,.
and the people and to which H." N",,
? war revenue measure Is .u part rr.nor
sve are bound, in their longer effect. '
r bring about results harmful TO TN" 'T-
: mun!ty at large, rich and poor alike
within the last few days 1t has beer
announced that the Canadian Gu..m.
ment has introduced bin for the 'up.'.
ton Of an income tax. The rates 20.
posed arc moderate for war u ..lr'
the highest percentage OF taxation ..g-
D., consider ably less than One-haf the r'''-
I fixed by our House Of Representa- go.
Moreover, the act as iutrudu 1
q the Canadian Government p'uEt''. II
y income taxation will be remttrI 81 .
d dividuals up to the amount wh.' ".
are now paying directly or as m a-'
o of a copartnership or as shareholders n
3 corporations, for excess war profit, @}''
a and other special war taxes u'.'
r existing laws
t PERSONALLY I believe in both fr.
= taxation. While an excess r~0''- '.- .
= Lot entirely free from eror"'r..
= tions. | believe that from 'a" u.
social point of view 'hc ar-uu ''.
e ir war time are so strong 20" f. '""
d 1t a peculiarly appropriate '.N
s only by the consideration that
2. not reach a point At Nh ..-.
= activity would hc crippled. 4asU
e unduly curtaIled, expansion au.'
n ployment and wages affected or '
Il centive to maximum effort and en'.
n destroyed