The sun., 1918-10-11
0. H. KAHN ATTACKS
HOUSE REVENUE BILL
Measure Would Fine Thrift
and Penalize Business Sue
cess, He Says.
BURDEN PLACED ON FEW
Banker Sees Sectional Par.
TALLY and Punitive Purpose
in Distribution of Taxes.

Otto H. Kahn criticised the House rev.
enue bill severely in speech delivered
last night before 200 manufacturers who
met to discuss war problems at the Hotel
Aston. The measure would fine thrift
and penalize those business men guilty
OF success" he said.
II am in favor OF taxation which, first.
lays the heaviest burden on those best
able to bear IL, and secondly. raises the
largest obtainable amount of revenue
with the least economic disturbance and,
as far as possible. with the effect of pro-
noting thrift.
"The House bill proposes to raise from
incomes, excess or war profit and inNer-
lance taxes $3.50. 100000 out Of an esu-
mated total of sS,1s2, 100000. In other
words, almost 20 per cent. of our STU
pendous total taxation Is to come from
these few sources.
at seems to me that the effect and
meaning Of this Is to penalize capital,
to fine business success, as well as thrift
and self -denial practiced In the past
thereby tending to discourage saving.
Points to Inequality.
''The House bill fails, on the other
hand to impose certain taxes the effect
of which is to promote saving. Inten-
tionally or not. yet effectively, It penal
ICES certain callings and sections Of the
country and favors others.
My criticism does not refer to the
principle of an so per cent. war profits
tax. l have from the very beginning ad-
vocated high tax on war profits.
my advocacy Of consumption and
similar taxes, such as stamp taxes Of
many kinds, is not actuated by any de-
sire to relieve those with large incomes
from the maximum of contribution which
may wisely be imposed on them. l ad-
vocate consumption and stamp taxes
such as every other belligerent country
without exception has found 1t we'll to
of the we'll attested fact
that while productive of very large rev.
enues in the aggregate, they are easily
borne, productive of no strain or dis
location, and automatically collected
and because of the further fact that they
tend to induce economy than which moth
ing is more important at this time and
which as far as can observe, is not be-
ing practiced by the rank and file OF our
people to a degree comparable to what
it is in England and France.
Influence of Politics.
And 1t must be emphasized that the
vast possibilities of saving do not rest
with the relatively small number Of
wealthy people, especially now when
their spending power has been very
largely decreased through taxation,
price fixing, contributions to war chart
ties, &C, but with those elements among
the masses of the people whose spend
ing power has been very largely H.
creased. b e, mainly the workinsmen
and the farmers.
There is apparently small limit TO
the zeal Of many politicians and Others
when it is question of taxing bust
ness and business men, especially those
guilty of success. We are. / believe
justified in inquiring to what exten,
therefs n relation between this tendency
and political considerations which ough,
to be remote from the treatment Of
economic subjects such as taxation"
Mr.. Kahn said there were numerous
taxes of a tried and tested and socially
Just kind-some of which were applied
during the civil and Spanish American
wars-which would be productive OF
large revenues and would be felt but
little by the individual. Some of these
he said. have been suggested 10 our
legislators but hate not found favor
in their eyes. Continuing he said:
Their non-impositlon. taken together
with the entire character of our taxa
ton programme. the burden of which
falls to a preponderant extent upon the
mainly industrial States and the bust.
ness classes, not only proportlOnately
which, Sf course. is just. hut di@rrimi-
natingly. which is not just seems hardly
explainable except on the theory that
the intention OF those who were
primarily in charge of framing that
programme was punitive and corrective
and that they were infiuenced--thoush
I am willing to believe unconsriousiy--
by sectional and vocational partially
Mr.. Kahn said that he knew that
was not popular to criticise war bur
dens OF a financial nature.
But" he said, ito win the war and
deal with the problems incident 10 and
resulting from 1t bravery and pau!ou'
devotion alone are not sufficient II is
easy to float with the prevailing sur
face currents of the day. attempting 10
attune ones utterances to sentiments
which are sure to meet with popular
applause. But the value of an exchange
of views lies in the difference Of views
honestly held and presented It
through free discussion. through me
meeting of conflicting opinions in inc
public forum that the truth IS souBh'
and ascertained in a republic.
THAT nation which will best Kno"
how to combine the dictates Of so'ia
justice with incentive and protection 10
individual effort will secure the prlze OF
world leadership no less than Of oppor-
tunity, well being and cuntentment 10Y
the masses Of its own people"
Sees Great Prosnerity Ahead.
Mr.. Kahn believes there Will be
period of suspicious achievement IN"
great prosperity for the United states
after the war. provided that rc'aA''s
between employers and employees '''
| based on mutual fair play. He sH"'
ut is true that the waste ~ war y
| enormous. but on the other harf We
have created vast assets during 'hr
war. both tangible an intarghi" we
have become Il creditor nation 'h'
world will need our products a't 'h'
genius OF our enterprise as never h"i"I'.
"Shall the reconstruction ported he
under the auspices OF semi.so .t'Isu,
and bureaucratic paternalsm, or slRil
we preserve for meeting the huge TASK
which confronts the world, the sa'r "nl
tested instrument OF individual enter
prise. always taking care that Il IL pro
gessively adjusted to the needs ana 'Ie
| spirit OF the day, and TO the d'N"No'
OF enlightened social Justice"
Personally ! have full faith ''"' y
| leaat In thia country the sober t. an O"