The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1918-03-29

income tax In In
$4,000 Il per cent. 9-soflp. c.
5000 IS per cent Ia p c.
10000 2oper cent. slsp. c.
1900 rs per cent p c.
tIf we add the so called "oceupa-
tIonal'' tax our total taxation on in
comes Of $4,000 is OK per cent. and ON
incomes of $4,000 90. per cent?
In other words, our income taxation
Is more democratic than that Of any
other country In that the Inrres, in
comes are taxed much more heavily
and the small and Moderate neoro =
much more lightly than anywhere enc
and incomes up to $1,000 TOR married
men not taxed at all.
CD II Is true, on the other hand.
that on very large Incomes as dis In
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 Excess Profits" Tax Here and
Abroad.
Moreover. II we. add to our income
tax our so called excess profit tax"
which is merely an additional income
tax on earnings derived from business,
we shall ind that the total tar to which
rich men are subject Is in the great ma
jority Of cases heavier here than lin
England or anywhere else.
a. II Is likewise true that the Eng.
lish war excess profit tax il 50 per cent
(less various offsets and allowances).
whilst our 50 called excess profit tax
ranges from % per cent to 90 per
cent.
But II Ii entirely misleading 10 base
a conclusion a. to the relative henvi-
ness of the American and British tar
merely on q comparison Of the rates.
because the English tar Is assessed on
a wholly different basis from the Amer
lean tar.
The American excess profit law (so
ealIed) taxes al profits derived from
business over and above a certain
moderate percentage. regardless Of
whether or not such profits are the
result q war conditions. The Ameri-
- 80 q . onn~raI 80 - f---~ 81.
rived from business in addition to
the regular income tax The Eng.
IIsh tax applies only TO 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 nonlinnlly higher
than ours. but 1t applies only TO war
profits. The normal profits Of business
II. E.. the profits which business used
to make in peace time-are exempted
in England. There, only the excess over
peace profits it's 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, eur lawmakers have de-
creed that normal business profits are
taxed here much more heavily than inI
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 II would seem that it
would be both fairer and wiser and
more in accord with public sentiment
IL the tax on business in general we're
decreased and. on the other hand, nm
increased tax were imposed on spe-
cific war profits.
(5) Our federal inheritance Tux Isl
fnr higher than 1t is in England or any
where else The maximum rate here
on direct descendants Is z7lk per cent.
as 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) Eng
land has raised less than rs per cent.
by taxation France and Germany far
less). while America Is about to raise
by taxation approximately 20 per cent.
Of her total war requirements (excIu-
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 10 be taxed In this emergency
to the very limit Of our ability md 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 sag that II may not become neces-
sary 10 impose stIll further taxes we
are not whimperIng and squealinR md
arifnting. hut--we do want the people