The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1918-09-13
RAISING THE DUCATS
BUSINESS OF SOLONS
MONEY MUST BE SECURED
TO CARRY ON BIG WAR
Twenty -Four BilIi)n Dollars
Needed to Finance Great
Undertaking
IAssociated Press Dispatch.l

washington, September 1.-THE
new war tax bill, by which is to be
raised one-third of the $4,000. 900, 900
needed to finance Americas share
OF the world war during the world
war during the coming fiscal year,
is the greatest piece Of legislation of
the kind ever attempted by cong
ress Of the United States. It touches
probably every taxable source and
is intended to place the bulk of the
burden where it belongs and make
every citizen share the cost of the
fight for democracy. Far reaching
and inclusive, yet the tax burden is
said to be not as heavy as that upon
the people of England. 1t is also
claimed it will not work the hard
ship nor demand the self-sacrifice
which has fallen to the lot of either
the English or the French.
The Financial Part
The American people may appre-
ciate it more fully and they may I'M
derstand more clearly the part they
are taking financially by given pass
ing notice at least, to the days in
which the allied countries of Europe
and particularly England, have rails
ed their war revenue.
The tax laws of England have ever
been more severe than those of the
United States. It is only natural
then, that Enlandg's war taxation
should be proportionately heavy. 1t
must also be remembered that Eng
land, being so near the fighting zone
and surrounded by waters infested by
enemy submarines has had her COM
merce embarrassed and her rich i'm
port duties, once the heaviest in the
world, somewhat reduced. In addition
to that the demand for man power
for the army has taken from factories
the labor. Home industry has been
paralyzed
England has, therefore, been COM
PEELED to rely almost entirely upon
loans-foreign and domestic and up
on system of internal taxation
levied upon incomes, excess profits
and Injuries. The same is true of
France and the other allied coua-
tries.
English Income and Taxes
English income and profits tax
elton has been classified under five
schedules as follows: (a) landlords
property tax. (b) farmers tax. (c)
tax on holders of government secur-
tiles. Cd tax on business profits,
professional incomes and on sources
OF income not included under any
other schedule. (e) tax on salaries of
public officials and employees.
The properties, profits and gains
On which income tax is payable and
which fall, under these schedules are
subject to an assessment on every
pound sterling of their value.
Under the first schedule, every
person deriving an income from prop
erty is taxed, these taxes being
payable by the person occupying the
property in question
The second schedule, or farmers
tax, is almost identical with the first
except that the taxable value of the
land is fixed by law instead of the
tax being levied against the actual
income derived from this land
Incomes Subject to Taxation.
All incomes, whether in the forms
OF interest, annuities, dividends, or
shares of annuities arising out Of,
any public revenue, are subject to
taxation under the third schedule
The tax is\assessed at it's source. be-
fore the taxable income reaches the
taxpayer, upon the persons and cor
porations entrusted with the payment
of such income. Interest on certain
war loans are exempt under the
schedule.
The tax on business profits. pro.
fessional incomes and on incomes
not Included under the regular sched-
ules, is so far reaching that it
touches practically every source ex-
cept the incomes of charitable trusts
and organizations and certain trade
unions. The tax rate is varying ac-
cording to circumstances The rate
is applied to all incomes exceeding
100 pounds year, with certain
attachments which decrease propor-
tionately as the incomes increase
The abatement is more generous and
the rate lower upon earned incomes
than upon those which ere I'M
earned
The incomes of men in the army.
navy and Red Cross are also subject
to taxation, but in these cases re-
duced rates are made
Under the fifth schedule fall the
incomes of all employees of the
crown as well as of all ecclesiasti-
raj bodies. The income taxable under
this schedule is not merely that re-
ceived in payment of current services
but also all annuities, pensions, sti-
ponds and even Easter offerings
made to clergymen by their con-
gregations.
English System of Luxury
The English system of luxury duties
is just as inclusive as that of the
United States and in many respects
the two measures, English and
Americans, are almost identical In
fact the English law was taken as
the model, in some respects for the
new American tax bill English law, !
as far as incomes are concerned, is
only growth and modification of a
Continued on Page Four) j.