Emmons County record. [volume] (Williamsport, D.T. [i.e. N.D.]) 1884-current, 1918-06-06

Ds
5.0oo l6 per cent. 1hp.a.
10000 20 per cent. 3M D. c.
l5.0O0 rs per cent 8 60,
uf we add the 80 called "occupa.
tional" tax our total taxation on in.
comes Of $4,000 is 6A per cent. and on
incomes of $4,000 OK per cent?
In other words, cur income taxation
10 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 $1,000 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 unconscious
income tax is somewhat lower than the
English tax, but the difference by which
our tax Is lower tran the English tax
Is incomparably more pronounced in
he case of small ar d moderate incomes
than Of large incOn es.
The "Excess Profits" Tax Hero 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 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.
(4.) 1t Is likewise true that the Eng.
fish war excess profit tax Is 80 per cent
Oess various offsets and allowances),
whilst our so called excess profit tax
ranges from 20 per cent. to 60 per
cent.
But 1t is entirely misleading to base
a conclusion us 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
a wholly different basis from the Amer.
lean tax.
The American excess profit law (so
calIed) taxes all profits .rived from
business over and above certain
moderate percentage. regardless Of
whether or not such profits are the
result of war conditions. The Amerl-
can tax Is general tax Oh income de-
rived from business in addition to
the regular income tax. The Eng.
lish 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 nominally higher
than ours, but it applies only to war
profits. The normal profits of business
Il. 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 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 1t
that method. 1t would seem that 1t
would be both fairer and wiser and
more In accord with public sentiment
II the tax on business in general were
decreased and, on the other hand, an
Increased tax were imposed on sp0.
citic war profits
(5.) Our federal inheritance tax ID
far higher than it Is In England or any
where else. The maximum rate here
on direct descendants Is PIN 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.
| ulJulCS NCASIuolNC VI iOull6 " leT uls
| lies and interest on war lOans) Emo.
land has raised less than IS per cent.
by taxation (France and Germany far
less). while America 10 about to raiss
by taxation approximately 20 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 a 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 t
make contributions to war relief worl
and other good causes without stint
The fact is that, generally speaking
capital engaged in business Is nov
being taxed in America more heavil,
than anywhere else in the world. w,
are not complaining about this; we d,
not say that it may not become neces
sary to impose still further taxes; w
are not whimperlng and sQuealing ant
agitating. but--we do want the peopl
to know what are the present facts
/ a ~ ~ 80 sve~v 4