New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-06-09
Levy onLuxuries
Will Not ONLY
Yield MOnev
ButHelpMobil-
izatiOnOfAmer-
lean Industry
for War
By O. M. w. Sprague

~ war revenue measure was
before Congress, there was
widespread doubt of the ability and
willingness of the people to pay
very heavy taxes. To impose addi-
tional taxation to an amount very
much in excess of s1,5OO,OO0, 900, it
was asserted, would be likely to
prove disturbing to business, damp
en- the spirit Of enterprise and Sc
riously diminish subscriptions to
Liberty bonds. All these fears have
proved groundless. Additional taxa
ton to the amount of about S3,OO0,-
100000 was levied, and no untoward
consequences have manifested them
selves. Business is most active, linn
tied only by available supplies of
materials and labor; the spirit Of
enterprise has not departed; in
deed, it has been found necessary to
keep it in check by controlling new
issues of securities; and, finally,
subscriptions to Liberty bonds have
been large enough, together with
tax receipts, to cover the huge war
expenditures. 1t is doubtful wheth-
err there is now any one in the
United States who would seriously
contend that our war preparations
would be further advanced at the
present time if lower taxes had been
imposed by Congress last autumn.
Notifications Of
Law Are Needed
The statement that under exist
ing laws the limits to which taxa
ton may be safely carried have not
been approached does not imply
that there are no defects in
those laws. Experience with the
working of the income tax and Of
the excess profits tax shows clearly
that notifications of the laws are
needed, to simplify methods of as
sessment and remove inequalities
in the burdens to which taxpayers
having similar earnings are subject.
The necessity for amendment Of the
present law becomes more urgent
with the sharp increases in rates
which are in prospect. Happily, the
work has been taken in hand in
good season. Congress will have
ample time to weigh carefully each
proposal for changes in existing
rates as well as for new taxes, and
to frame suitable administrative ar
engagements for the particular taxes
which are finally adopted. 1t is also
an advantage that the new revenue
law will presumably be completed
long in advance Of the date of pay.
ment of income and excess profits
taxes, SO that taxpayers may have
ample opportunity to adjust theil
affairs to the burden for which they
must make provision.
The yield of the present taxes !:
somewhat greater than was origin
ally anticipated. Congress did bet
ter than it knew in the matter O:
adequate taxation. 1t is proper t.
add that it probably went quite a.
Tar and perhaps little beyond pub
lie opinion, as it had declared /
would during the first months of ou
Participation in the war. Since tina
time number of influences hav
been at work which warrant the con
ndent expectation that Congress
will find widespread supper
throughout the country for a polio,
OF greatly increased taxation and
more general, and therefore NOR
equitable, distribution of this par
sicular war burden.
busines.-as-Usual
Folly Must Die
Each month finds US engage
more deeply in war activities, bot
military and industrial. The bus
hsss'as-usual folly is decidedly an
significantly less vociferous. MOI
"na more generally it is being re'