The Delta independent., 1918-03-22

(If we add the so called "occupa-
tional" tax our total taxation on in
comes of $4,000 is 6A per cent. and
on incomes of $4,000 9A per cent?
In other words, our income taxation
is more democratic than that of any
other country in that the largest in
comes are taxed much more heavily
and the small and moderate incomes
much more lightly than anywhere else
and incomes up to $4,000 for married
men not taxed at all.
(3) 1t is true, on the other hand,
that on very large incomes-as distin-
guished from the largest incomes-our
income tax is somewhat lower than
the English tax, but the difference by
which our tax is lower than the Eng
lish tax is incomparably more pro-
nounced in the case of small and mod
crate incomes than of large incomes.
The excess Profits" Tax Here and
Abroad.
Moreover, If we add to our income
tax our so called excess profit tax"
which is merely an additional income
tax on earnings derived from busi-
ness, we shall find that the total tax
to which rich men are subject is in
the great majority of cases heavier
here than in England or anywhere
else.
"a 1t is likewise true hat the Eng
lish war excess profit tax is so per
cent Qess various offsets and allow
ances), whilst our so called excess
profit tax ranges from 20 per cent. to
90 per cent
But it is entirely misleading to base
a conclusion as to the relative heavi-
ness of the American and British tax
merely on a comparison of the rates,
because the English tax is assessed
on wholly different basis from the
American tax.
The American excess profit law $50
called) taxes all profits derived from
business over and above a certain
moderate percentage, regardless of
whether or not such profits are the
result of war conditions. The Ameri-
can tax is a general tax on income de-
rived from business in addition to
the regular income tax The Eng
lish tax applies only to excess wal
profits-that is, only to the SUN
by which profits in the war years
exceed the profits in the three years
preceding the war, which in England
were years of great prosperity. In
other words, the English tax is nomi.
nally higher than ours, but it applies
only to war profits. The normal prof
its of business e., the profits which
business used to make in peace time
are exempted in England. There, only
the excess over peace profits is taxed.
Our tax. on the contrary, applies to all
profits over and above very moder-
ate rate on the money invested. in
business.
We Tax Normal Profits, They lax onl,
War Profits.
In short, our lawmakers have de-
creed that normal business profits are
taxed here much more heavily than
in Englal 1, while direct war profits
are taxed less heavily.
You will agree with me in question
ing both the logic and the justice of
that method. 1t would seem that it
would be both fairer and wiser and
more in accord with public sentiment
decreased and, on the other hand, an
increased tax We're imposed on spe-
cific war profits.
(5) Our federal Inheritance tax is
far higher than it is in England or
anywhere else. The maximum rate
here on direct descendants Is % n per
cent. as against 20 per cent. in Eng
land. In addition TO that, we have
state Inheritance taxes which do not
exist in England.
(6) OF her total actual war expen-
ditures exclusive of loans to her al
lies and interest on war loans) Eng
land has raised less than is per cent. |
by taxation (France and Germany far
less), while America is about to raise |
by taxation approximately 2s per cent. |
of her total war requirements (exclu-
sive OF loans TO the allied nations and
of the amount to be invested in mer-
camille ships. which, being produc-
tive Investment, cannot properly be |
classed among war expenditures.
We men of business are ready and
willing to be taxed in this emergency
to the very limit of our ability and to |
make contributions to war relief work
and other good causes without stint. |
The fact is that, generally speaking. !
capital engaged In business is now
being taxed in America more heavily |
than anywhere else in the world. We |
are not complaining about this: we do |
not say that 1t may not become neces-
sary to impose still further taxes; we