Evening star., 1918-08-18

has been stated; one, ]. Hampton
Moore of Pen!sylvania, is a business
man and banker; opA Fairchlld Of
Treadway Of Massachusetts is a "ho-
tel proprietor" to quote his own Lam
guage of classification.
The committeeman meet in large
room of their own behind doors that
porters. Item by item they are going
down the list of taxable articles. The
Treasury Department has sent them
letter of suggestions: and the
United States Chamber of Commerce,
by its 5000 constituent bodies located
In cities and towns. is taking vote
on taxation propositions and the
things that are not exactly essential
to business In time Of war.
Manufacturers. merchants and bank
ers. In the main, form the member
ship Of the national chamber Of COM
merce and the smaller bodies that
constitute 1t. A committee, on which
We're such men as John v. Farwell,
Chicago merchant: Edward A. Filene.
Boston merchant; John H. Gray. pro-
University Of Minnesota; Edmund b.
Hurbert. Chicago banker; J. Law
renee Laughlin. head political econo-
mist at the University Of Chicago: !:
Robert F. Maddox. Atlanta. banker
snaa snd .nn manufa.eturer; a a.uer; Oliver M. w:
finance at Harvard, and John T. Scott,
one Of the leaders of business in
Texas, has laid down certain prin-
ciples of taxation for adoption by
trade bodies in all parts of the coun-
try.
4 4
ut Is important" this committee
says, "in considering present taxation
to remember that the heavier the
taxes which are now imposed the more
rapidly can taxation be decreased
after the war;.
Then the committee adds: "At pres
ent, however favorable the ratio of
our taxes to our expenditures COM
pares with the ratios OF other coun-
tries. in such countries as England
the rates of tax imposed are very
considerably higher than our own
rates"
AS to the tax on war profits the
committee states that although
fruitful in revenue, and apparently
efficient as to four-fifths of our busi-
ness concerns, it has failed adequately
to reach large profits due to the war
of the other fifth
1t is well for the American people
TO Know that organized business
than willing to pay its share of the
cost of the war. The representative
business men named in this article
declare that "the chief sources of new
revenue should be the income tax. a
tax on the excess of profits over the
present exemption and a drastic tax
on all war profits above a certain re-
turn suffcient to permit business to
be carried on with safety"
we suggest" the committee re-
ports, the desirability of maintaining
the general basis of the present ex-
cess prohts tax. but with increased
rates. perhaps as high as 80 per cent,
instead or the present so per cent"
Undoubtedly the proflteers will ba
hit hard by the tax bill that Mr.,
kitchin and his associates are now
writing. During the hearings to
which reference has heretofore been
made, Mr.: Kitchin. addressing a wit
ness. SAID: Some corporations did
make 1000 per cent last year" And
Mr.: Fordney stated that he knew Of
frm, capitalized at $25,O00, whose
profts during the same period
amounted to $125,o0O.
When the writer asked Mr.. Kitchin
IL great numbers of small" men were
not evading the tax on incomes, he
repiied' congress passes laws. 1t Is
up TO the executive departments to
enforce the laws. There are heavy
penalties for those who fail to report
their taxable incomes, no matter
whether the delinquents are capital-
lists or working men.
But the greatest loss sustained b,
the government, in my opinion" he
said, "is directly traceabie to those
corporations which report profits of