The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-09-29

low Pending in the Senate.
ernment and the survival of the loose
is essentiafvto the egg. That is to say.
in any scheme OF large tax levies, the
cupidity of business must be reckon
ed with and, after payment of all
taxes. it must be left profits sufficient
to preserve the incentive of agrees
sive efforts TO continue it's profit
making 1t must continue to make
efforts and to make profits because
the government must continue to
have part of those profits. and in
all probability, in many cases, large
part.
Not only the committee and con-
gress, but the price-fxing board
should keep these considerations con-
stantly in view. Otherwise, congress
might be forced to resort for the
greater portion of it's revenues to direct
taxes on consumption. On the other
hand, the war needs Of the country
demand that congress require Of bust
ness. corporate and individual, a
partnership in its income and profits
with the government. 1t may be
necessary in many cases for the gov
eminent TO be the bigger sharer.
business. too. must be open and
should so control its cupidity and am
bition az to cooperate with glad en-
thusiasm in all the aims and efforts
OF such partner.
To get rich quick out of the war,
or during the war will by the rev.
enue necessities of the government
hereafter be forbidden Indulgence.
Designed prodteering and blood
money making must cease. However,
we should BE careful rot to construe
all increase OF incomes and profits
/ blood money. Large imitation. or
rather expansion, of credits and the
big difference between supply and de-
mand have caused to be made i'm
mense profits. The man and the in
dustry that had the supply inevitably
made extraordinary profits, Perhap s
they viii continue 10 make such prof
aus. but will not be able to approp-
riate so large part to their own use.
The big new partner will take a heavy
hand In the appropriati ton to it's own
use.
While, no doubt, others have en-
gagged in the deliberately planned and
manipulated profiteering and blood
money" making. the government con-
tractors and subcontractors will prob
ably be found TO be the chief Of
tenders.
Wealth WIN Not BE Pcnalized
Wealth Will not be penalized or con-
nscated, bat it will understand OF
tcourse, that the government must not
be paralized by lack of funds. The
| taxpayer. however big he be can be
sure that the committee and congress
will not adopt in the making of tax
bill any such theory as taking for
the government all income in excess
-
agitated by quite n respectable few.
A comparison OF the income tax re-
turns OF corporations and individual
for the years leiA--the year the war
hegan--lels and 1917 and the pro-
digious increase of iucop1es in 1917
over those of 1914 furnish us a sure
starting point in the income and ex-
cess profits tax program. Corporate
net incomes for the year 1914 amount
led to $3.50. 900. geo: individual net
income amounted TO 81. t66. 900. toe. a
total Income OF $500. 600, 900.
In 1915 corporate net incomes
amounted to $s.7ss.so 900: individual
met incomes amounted to $500 900 =
900. total of $l5,os5,eoo.0 900. This
shows an increase of 1916 over 1914
in cooperative incomes of $A,S25s0o,-
900. and in individual incomes of 81
500. 100000. or an increase in both o!
81. l2s 500 zee. While for the caien
OAR year 1874 the returns have not as
yet been completely tabulated. it i.
estimated by the treasury department,
that corporate incomes will reach
! 5000, 600. 900. and individual In
comes will reach $1,000, goo, oeo, or a
total OF both. SIT zoo. 100000 Thus
There was an increase in 1917 over
1914 in cooperative incomes OF So.
1860, oo0, 600, and individual incomes OF
Ss,0eo, 900. an increase in both oil
50 eco .ooo. 600. Assuming that for the
calendar year OF 1918 the incomes
corporate and individual. will equal
those OF 1917. and they Will, unless
1.-THE price-fixing board materially in.
terferes, and that we shall be com
PEELED to raise from such incomes
and profits $4,000. 0oo, 600. 1t can ee
seen that IL proper adjustments are
made, 1t can be done without destroy
ing or seriously Gripping business OF
eonfiscat ting incomes OF corporation.
or individuals After taking the S..
600, 900 ooo----and that amount NAV
not be necesSary--there will still re.
main to the individual and corpora
tion at least $4,000, oee, geo more in.
come and profits than in 1914 or abou,
40 per cent more.
Whatever amount the government,
must have from such incomes and
profits, among the different problems
are. how TO make the proper adjust.
ment. how many brackets In the
graduation OF the rates. what will the
rates in each bracket be. what should
the deduction be. how much exemp
! ton should be allowed, shall bust.
IT IT