The evening herald., 1918-03-11

In other words. our income taxation
10 more democratic than that Of any
other country In that the largest In.
eomes are taxed much more heavily
and the small and moderate incomes
much more lightly than anywhere else
and incomes up to $4,000 for married
men not taxed al all.
CD II ~ true, on the other hand.
that ON very large incomes--ss distin-
guished from the largest incomes--our
income tax Is somewhat lower than the
English tax, but the difference by which
our tax is lower than the English tar
is incomparabIy more pronounced in
the case of small and moderate incomes
than Of large incomes.
The "Eseess Profits" Tax Here and
Abroad.
Moreover. II we add 10 our incsme
tax our so called excess profit tax"
which is merely an additional income
tax on earnings derived from business.
we shall 1nd that the total tax To which
rich men are subject is in the great ma.
Iority Of cases heavier here than in
England or anywhere else.
90 Il Is likewise true that the Eng
lish war excess profit tax is 30 per cent.
Oess various offsets and allowances).
whilst our 50 called excess profit tax
ranges from 70 per cent. to ~ per
cent
But Il is entirely misleading TO base
n conclusion as to the relative henvi-
ness OF the American and British tar
merely on comparison of the rates,
because the English TAX is assessed on
n wholly different basis from the Amer.
ican tax
The American excess profit law (so
ealledl taxes all profits derived from
business over and above n certain
moderate percentage, regardless OF
whether or not such profits are the
result of war conditions The Amcri-
can tax Is a general tax on income de-
rived from business In addition to
the regular income tax. The Eng
lish tax applies only TO excess war
profts-thst is. only To the sum by
which profits In the war years exceed
the profits In the three wears preceding
THE war, which in England were years
ot great prosperity In other words.
the English tax is nominally higher
than ours, but II applies only 10 war
profits. The normal profits OF business
Il. O., the profits which business used
20 make In peace time--are exempted
In England There, only the excess over
peace profits It's taxed. Our tax. on
the contrary, applies 10 all profits over
aud above very moderate rate or 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
iNA'u itss HchNlA,
You will agree with me In question.
ing both the logic and the Justice Of
thar method. Il would seem that IL
would he both fairer and wiser and
moro In accord with public sentiment
II the tax on business In general we're
decreased and. on the other hand, an
increased tax were imposed on spe-
cihc war profits
(i1 our federal inheritance tar Is
FAR higher than It Is In England or any.
where else. The maximum rate here
on direct descendants Is 2Tis per cent.
Us against 20 per cent In England. In
addition to that, we have state in
herilance taxes which do not exist In
England
(G) Ot her total actual war expen.
dlturcs exclusive of loan~ To her al.
lies aud interest on war loans) Emo
land has raised less than IS per cent.
by taxation (France and Germany far
lessJ. while America is about to raise
by taxation approximately "a per cent.
OF her total war requirements (excln.
slve NJ loans to the allied nations and
Of the amount tO be invested In mer.
camille ships. which, being n produc.
tive investment. cannot properly bs
classed among war expendtures).
We men ot business are ready and
willing 10 be taxed In this emergency
to the very limit of our ability aud 10
make contributions 20 war relief work
and other good causes without stint
The fact is that, generally speaking,
capital engaged In business Ia now
helng taxed In America more heavily
than anywhere else in the world. We
are not complaining about this; we do
not say that Il may not become neces-
sary 60 impose siill further taxes We
are not whimperlng and sqUealing and
agltntlng, bWt--we do want the people
tn know what are the present facts
and we ask them not To- give heed To
tho dcmngoguc who would mike thCin