The evening herald., 1918-03-11
''THE rich MANS WAR
A HATEFUL CALUMNY"
American Business Men Ready to
Make Sacrifices With -
out Stint. Il
TAXES HERE AND ABROAD.
American Taxation the Most Demo.
cratic In the World.
By OTTO n. KAHN.

Nothing Is palmer than that business
aud business men had everything to
gain by preserving the conditions which
existed during the two and half years
prior TO April, 1917. under which many
Of them made very large profits by fur
nlshing supplies provisions and ilnan-
cial aid TO the allied nations. Taxes
were light, and this country was rap.
idly becoming the great economic res
crvolr Of the world.
Nothing II palmer than that any sane
business man in this country must have
foreseen that, II America entered the
war. these PROFITS would he immensely
reduced and some of them cut on en-.
tircly. because our government would
step In and take charge that II would
cut prices right and left. as. In fact, IL
has done; that enormous burdens of
taxation would have to he imposed. the
bulk OF which would naturally be borne
10y the well-to-do in short, that the un-
prccedenied golden fiow into the Golfers
OF business was bound to stop with our
Joining the war, or, at any rate. to be
much diminished
but II is said the big hnanciers Of
New York were afraid that the money
loaned by them 70 the allied nations
might be lost 10 these nations were de.
featcd, and therefore they Unanswered
to get America into the war In order to
save their investments.
Proof That the Charge 10 Absurd.
A moments reflection will show the
utter absurdlty of that charge. Let MS
assume, for arguments sake that the
allies had been defeated. Let us make
the wi'dly improbable assumption that
they had defaulted for the tllae being
upon these foreign debts, the greater
part of which. by the way, is secured
by the deposits ot collateral IN the
shape Of American railroad bonds and
stocks and Of bonds OF neutral coun.
tries. aggrcEating more than sufficient
In value To cover these debts. Lot us
assume that the entire amount OF al
lied bonds placed In America had been
held by rich men In New York and the
east instead of being distributed, ms Il
~. throughout the country.
Is u not perfectly manifest that a
single years American war taxation and
reduction ot profits would take ont ot
the pockets Of such assumed holders n
vastly greater sum than any possible
loss they could have suffered by de.
fault on their allied bonds. not to men.
tion the heavy taxation which is hound
Ia follow tho war for years 10 come aud
the shrlnkage of fortunes through the
decline of all American securities In
consequence of our entrance into the
war?
Not only is the "rlch MASS war" an
absurd myth; the charge is a hateful
caumny.
business men, great or small, are nd
different from other Americans. and
We reject she thought that any Amerl-
can, rich or poor, would be capable Of
the hidcous and dasiardly plot I'd
bring upon his country the sorrows
and suIerlngs of war in order 20 en-.
rich himself. Business men are bound
% be exceedingly heavy financial losers
through Americas entrance into the
war. Every element OF sclflnterest
should have caused them 10 use their
utmost efforts to preserve America :
neutrality, froio which they drew 81
much profit during the two and hall
years before April, 1917. Every con.
sidcrntion Of personal advantage com.
and support the agitation of the peace.
at.auy price party. They spurncd
such lgnoble reasoning. they rejected
that Rfillatlon; they stood for war
when it was no longer possible. with
safety and honor, Ia maintain peace,
because they are patriotic citizens
first aud business men afterwards.
Our Income Tax and Taxes Abroad.
a. The largest incomes are taxed
car more heavily here than anywhere
else In the world,
The maximum rate Of income taxa.
ton here is a. per cent. Ia England Il
is 42l per cent ours is therefore M
per cent higher than England's and
the rate In England Is the highest pre.
vaillhg anywhere IN Europe And I'm
addition 10 the federal tax We mus,
bear In mind our state and munlclpel
taxes.
CD Moderate aud small Incomes. an
tie other hand, are subject to t,r
smaller rate ot tHNaiLon here than in
England.