Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-08-03

minimum of 10 per cent on net In
comes of corporations with capital
exceeding 0000 and there is pend
ing proposal that tho maximum
shall not exceed SO per cent of the
net income. The occupational tax
on salaries in excess Of $4,000 is
repealed and corporations and part
nerships are put upon an equality.
The income supertax schedule is still
unsettled. but the normal tax is like
~ to be 10 per cent. Miscessaneous
and luxury taxes are next on the
schedule.
The procedure is Still leisurely con-
stdering the Presidents urgency for
prompt action land adjournment of
politics. SO that business would have
opportunity to adjust Itself to its
tax burdens. The house prefers
to postpone the bill until after the
election, lest the appropriately of the
Iievy should affect Representatives per-
sonal fortunes. 1t is announced that
the ways and means committee pro-
poses to Increase the tax on inherited
estates by half, That piles the in
creases of Federal incomes and inherit
ance taxes upon the state taxes of the
same sort. and approaches conflscation
in cases where the death of more than
one In family duplicates the levy.
| No one would object even to that
II 1t were necessary. but the taxpayers
carefully avid other subjects of taxa
tion. For example, the United States
chamber OF Commerce suggests heavy
taxes upon few articles of widespread
consumption" The Chamber does not
rear the appropriately OF such a univer-
sal tax as representatives do, and
seems TO rank popularity below produc
tfvity' as a tax merit Another tax
suggested by those who would pay Il
Is a tax on sales Other countries have
u. Fhts country has had 1t in other
years. The trouble with a tax OF such
wide Incidence, and so easy to collect,
Is that II Is not original with the house
In 1852. also. merchants proposed
sale TAX to congress. The Times said
Of it. "Amonog the numerous PROPOSE
tions for scheme Of finance or taxa
ton which shall produce revenue
equal to the greatly Increased expendi-1
lures Of government. we have seen none
that appears to accomplish this end 40
fully, and to which so few objections
can be urged, as a uniform tax upon
transfers or sales Of merchandise" The
merchants OF that year formally drafted
and proposed bill, which that con-
srass passed only in much reduced
form. "a broader sales tax was passed
by the next congress. and was collected
until 1870. It will be interesting to re-
mark to what extent tax history will
repeat itself now.
The house prefers 20 harass wealth
rather than to raise revenue. esteem
ing that sure road Sto popularity,
Wealth does not dare 80 say a word
In defense, lest worse thing should
happen to it. But trade Is as free
In Directing to new taxes as in pro.
posing revival OF old taxes An ax-
ample is the proposal to levy an ex-
cess tax on undistributedt profits. In
many cases undistFDuted profits are
not in cash or distrfbntable form. In
times like these great additions to plant
are necessary II production is to be
maintained and production is as nee
essary as taxes. I'M fact. production is
more necessary than taxes, for tax de-
flcits can be made good at one time or
another and in one way or another sbit
there Is no remedy, for deficiency in
production. Theatrade view is that it
would be bettersto make allowances for
investment and depreciation rather than
to- tax With observation-disclosures sgainst IN
Nestment in thsameans Of production.
There is no objection toaexcess profits
taxes II the production necessary to
profits is not hindered But there can
be little increaseyofs production with In
crease OF plant, and increase Of plant is