New-York tribune., 1918-10-11
Kahn Urges Wide
Distribution of
War Tax Burden
Wall Street Banker Favors
Adoption of an Impost
ON Consumption

OF Kuhn, Loeb 4 Co., went on record
last night as favoring broader ap-
plcation of war taxation to insure
equitable distribution of the burden
III an address delivered before the Ma
tional Industrial Conference Board Mt
the Hotel Astor. He declared himself
as strongly in favor of consumption
and similar imposts, such as stamp
taxes, because of the we'll attested
TACT that while productive of very large
revenues in the aggregate, they arc
easily borne, productive of no strain
or dislocation, and automatically COL
lected, and because Of the further fact
that they tend to induce economy, than
which nothing is moro important at
this time.
II am in favor Of taxation" declared
Mr.. Kahn, (which, first. lays the
heaviest burden on those best able to
bear it. and. secondly, raises the larp-
est obtainabe amount of revenue with
the least economic disturbance, and, as
tar as possible. with the effect of pro-
netting thrift. The House bill proposes
TO raise from income, excess or war
prchts and inheritance taxes 81, 5,6S6 .OOO.-
oO0 out OF an estimated total of Se,-
]S2,OO0,0O In other words, almost 70
per cent Of our stupcndous total taxa
ton is to come from these few sources.
II seems to me that the effect and
meaning of this is to penalize capital,
TO tine business success as we'll AS
thrift and selfdenial practised in the
past, thereby tending to discourage say
ing. The House bills fails, on the
other hand, to impose certain taxes
the effect OF which is to promote saw
ing. Intentionally or not, veto effec-
lively, 1t penalties certain callings and
sections of the country and favors
others. My criticism does not refer 10
the principle Of an so per cent war
profits tax. have from the beginning
advocated a high tax on war profits.
10 permit individuals aud corporations
TO enrich themselves out of the dread
tut calamity of war is repugnant to
ones sense Of justice and gravcly
detrimental TO war morale"
Should Not Cripple Business
But it is highly important, Mr.. Kahn
adoed, that taxation should not reach
a point at which business would be
crippled, cash resources unduly cur
tailed and the incentive to maximum
effort and enterprise destroyed. He
pointed out that both Theoretically and
actually the spending OF money by the
government can not and does not have
the same effect rs productive use of his
funds by the individual, and call at
tentiOn to the old maximum of taxa
tion that an excessive impost destroys
It's own productivity.
There is apparently small limit"
Mr.. Kahn said, "to the zeal of many
politicians and others when it is Il
question of taxing business and bust
ness men, especially those guilty Of
success. We are, believe, justified in
lnquiring to what extent there is q
relation between this tendency and po-
litical cons dorations which ought to
be remote from the treatment OF eco
nomic subjects such AS taxation Let
us take, ;s an instance, the case OF the
farmer. I do not pretend to judge
whether III these war times the farmers
of the country are bearing an equitable
share OF taxation in proportion to
other calhngS or not. / certainly rec
ognize that they are entitled to be
dealt with literally, even generously.
for ] know the rigors of the farmers
life, the ups and downs Of their indus
try's productivity, and fully appreci
ate that their work lies at the very
basis OF national existence. Every
thlnK tnat can falrly make tor the con
tentmenr, well being and prosperity of
the farmer is to be whole heartedly
welcomed and promoted.
The Farmers Contribution
"Yet We cannot avoid noticing that
the average value OF farm lands in
this country is estimated to have in
creased between 1900 and 1918 more
than 200 per cent, that the value of
farm products has been vastly en-
hanced, but that according to the lat
est published details of income tex re-
turns the farmer contributes but q
very small percentage to the total in
come tax collected. OF twenty-five
selected occupations the farmers class
contributes the least in the aggregate,
although it is numerically the largest
class IN the country.
LET it DO clearly understood that
have not the remotest thought Of sug-
geating "tax dodging' on the part Of
the farmers. The point of my ques-
ton is not the action and attitude of
the farmer. But here is a great in
dustry exempt from the excess profit
and war profit tax and apparently not