South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-09-13

/ WASHINGTON. Sept 12.-The
new war tax bill, 10y which is TO be
raised one-third of the s24,O0O,OOo.
GOD needed TO finance Americas
share Of the world war during the
coming fiscal year. is the greatest
piece Of legislation Of the kind ever
attempted by a congress of the
United States. II touches probably
every taxable source and is intend
e6 TO place the bulk Of the burden
where il belongs and make every
citizen share the cost OF the tight Tor
: democracy.
Far reaching and inclusive, yet
! the tx burden IL said 10 be not as
heavy as that upon the people or
England II is also claimed IL will
not work the hardship nor demand
I the self-secrince which has fallen
to the lot OF either the English OF
I the French.
The American people may appre-
ciate il more fully and they may IN
derstand more clearly the part they
are taking financially by giving
passing notice at least TO the days
I IN which the allied countries OF
Europe and particularly England,
! Isve raised their war revenue.
The tax laws Of England have
| ever been more severe than those Of
the United States. It is only natural
then. that England's war taxation
should be proportionately heavy. II
must also be remembered that Eng
land. being SO near the fighting zone
and surrounded by waters infested
bv enemy submarines has had her
commerce embarrassed and her rich
import duties. once the heaviest IN
the world somewhat reduced. In
addition to that the demand for man
power for the army has taken from
factories the labor. Home industry
has been paralyzed.
England has. therefore, been COM
PEELED 20 rely almost entirely upon
loans-foreign and domestic--and
upon a system Of internal taxation
levied upon incomes. excess profits
and luxuries. The same is true OF
France and the other allied coun-
, tries.
= English income and profits taxa
ton has been classified under five
schedules as follows: (a) Landlords
property tax. (b) Farmers tax, (c>
Tax on holders of government Sc
curities. CD Tax on business profits,
professional incomes and on sources
of income not included under any
other schedule. (e) Tax on salaries
of public officials and employees.
The properties. profits and gains
on which income tax is payable and
which fall under these schedules are
subject 70 an assessment on every
pound sterling Of their value.
Under the first schedule. every
person deriving an income from
property is taxed, these taxes being
payable by the person occupying the
property IN question.
The second schedule. or farmer
tax is almost identical with the first
except that the taxable value OF the
land is fixed by Law instead OF the
tax being levied against the actual
income derived from this land.
All incomes. whether in the forms
of interest. annuities. dividends, or
shares Of annuities arising out OF
any public revenue, are subject 20
taxation under the third schedule.
The tax is assessed at its source. be-
fore the taxable income reaches the
taxpayer. upon the persons and cor
porations entrusted with the pay
ment Of such income. Interest on
certain war loans are exempt under
the schedule.
The tax on business pronts, pro-
fessional incomes and on incomes
not included under the regular
/ schedules. is SO FAR reaching that 10
. touches practically every source eN-
( cept the incomes OF charitable trusts
/ and organizations and certain trade
unions. The tax rate is verifying &C
cording 70 circumstances The rate
+ is applied 20 all incomes exceeding
T 40 pounds a wear with certain
abatements which decrease proper
/ .lonately as the incomes increase
The a IA rau-err - more r~..- aror-x q n a