French Broad hustler. [volume] (Hendersonville, N.C.) 1916-1919, 1918-03-14


Cf we add the so called "occupa-
tional" tax our total taxation on In
comes Of $4,000 is 6% per cent. and on
incomes of $4,000 9% per cent?
In other words, our income taxation
Ts 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 moro lightly than anywhere else
and incomes up to $4,000 for married
mel 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 English tax
is incOmparably more pronounced in
the case Of small and moderate incomes
than of large incomes.
The "Exeess Profits" Tax Here and
Abroad.
Moreover, if, we add to our income
tax u so called excess profit tax"
which is merely an additional income
tax Oh earnings derived from business,
we shall find that the total tax to which
rich men are subject is In the great ma
jOrity Of cases heavier here than In
England Or anywhere else.
a. 1t is likewise true that the Eng
nsh wal excess profit tax is 80 per cent
(less various offsets and allowances),
whilst our so called excess profit tax
ranges from 20 per cent. to 60 per
cent
8. But it Ia entirely misleading to base
a conclusion as to the relative heavi-
nes Of the American and British tax
merely on a comparison OF the rates.
because the English tax Is assessed on
a wholly different basis from the Amer
lean tax.
The American excess profit law (so
caIted) taxes all profits derived from
business over and above a certain
moderate percentage, regardless Of
whether OF not such profits are the
result Of war conditions. The Ameris
can tax Is a general tax on income de.
rived from business in addition to
the regular income tax. The Eng
Iish tax applies only ia excess war
profits-that is, only to the sum 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 nominally higher
than ours, but it applies only to war
profits. The normal profits of business
i. e., the profits which business used
to make in peace time-are exempted
in England. There, only the excess over
peace profits its taxed. Our tax, on
the contrary, applies to all profits over
and above a very moderate rate on the
money invested in business.
We Tax Normal Profits, They Tax Only
War Profits.
In short, our lawmakers have de.
creed that normal business profits are
taxed here much more heavily than in
England, 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
if the tax on business in general were
decreased and, on the other hand, an
increased tax were imposed on spe-
cific war profits.
(5.) Our federal inheritance tax is
far higher than it is in England or any,
where else. The maximum rate here
on direct descendants is 27k per cent,
against 20 per cent. in England. In
addition to that, we have state in-
heritance 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) End
land has raised less than IS per cent
by taxation (France and Germany far
less), while America lie about to raise
by taxation approximately % per cent
OF her total war requirements (exclu- |
ave Of loans to the allied nations AID
Of the amount TO be invested in mer-
camille ships, which, being a produc- |
tive investment, cannot properly bO
classed among war expenditures).
We men OF business are ready and
willing to be taxed In this emergency
to the very limit Of d 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 It may not become neces-
sary to impose still further taxes; we
are not whimpering and squealfng and
ag1tating, but-we do want the people
to know what are the present facts, !
and we ask them not to. give heed To