Charlevoix county herald. (East Jordan, Mich.) 189?-1953, 1918-03-15
American Business Men Ready to
Make Sacrifices With
out Stint.
TAXES HERE AND ABROAD.
American Taxation the Most Demo.
cratic In the World.
BY OTTO II. KAHN.

ness and business mel had everything
to gain by preserving the conditions
which existed during the two and a
half years prior to April, 1917, under
which many Of them made very large
profits by furnishing supplies. provi-
sions and financial aid to the allied
nations. Taxes were light, and this
country was rapidly becoming the
great economic reservoir Of the world.
Nothing II palmer than that any
sane business man In this country must
have foreseen that, If America entered
the war. these profits would be In
mensely reduced and some of them
cut or entirely, because our govern
ment would step in and take charge;
that II would cut prices right and left,
as, In fact, It has done; tina. enormous
burdens Of taxation would have to be
imposed, the bulk Of which would nat
urally be borne by the well-to-do; In
short, that the unprecedented golden
flow into the Golfers Of business was
bound to stop with our Joining the war,
or, at any rate, to be much diminished.
But II Is said the big fnanciers of
New York were afraid that the money
loaned by them to the allied nations
might be lost II these nations were de-
feated, and therefore they Unanswered
to get America into the war In order to
save their investments.
Proof That the Charge 10 Absurd.
A moments reflection will 81 ow the
utter absurdity Of that charge. Let us
assume, for arguments sake, that the
allies had been defeated. Let us make
the wildly improbable assumption that
they had defaulted for the tine being
upon these foreign debts, the greater
part of which, by the way, Is secured
by he deposits Of collateral In the
shape of American railroad bonds and
stocks and Of bonds of leutral coun-
tries, aggregating more than sufficient
In value to cover these debts. Let us
assume that the entire amount Of al
lied bonds placed In America had been
held ~ rich men in New York and the
east instead of being distributed, as II
Is, throughout the country.
Is 1t not perfectly manifest that a
single years American war taxation and
reduction of profits would take out Of
the pockets Of such assumed holders a
vastly greater sum than any possible
loss they could have suffered by de-
fault on their allied bonds. not 20
mention the heavy taxation which Is
bound to follow the war for years to
come and the shrinkage Of fortunes
through the decline of all American
securities in consequence Of our en-
trance into the war;
Not only is the erich mans war" an
absurd myth the charge is hateful
calumny.
Business men, great or small, are no
different from other Americans, and
we reject the thought that any Ameri-
can, rich or poor. would be capable Of
the hideous and dastardly plot to
bring upon his country the sorrows
and sufferings of war In order to en-
rich himself. Business men are bound
to be exceedingly heavy financial losers
through Americas entrance into the
war. Every element Of self-interest
should have caused them to use their
utmost efforts to preserve Americas
neutrality, from which they drew so
much profit during the two and half
years before April, 1917. Every con.
sideration Of personal advantage COM
manded men Of affairs to stand with
and support the agitation Of the peace
at-any price" party. They spurned
such ignoble reasoning; they rejected
that affiliation; they stood for war
when II was no longer possible, with
safety and honor, to maintain peace,
.--cause they are patriotic citizens
first and business men afterwards.
Our Income Tax and Taxes Abroad.
(1.) The largest incomes are taxed
far more heavily here than anywhere
else In the world.
The maximum rate of income taxa
ton here Is 81 per cent In England
II Is 42h per cent. Ours is therefore
80 per cent higher than England's, and
the rate In England is the highest pre-
vailing anywhere In Europe. And in
addition to the federal tax we must
bear. In mind our state and municipal
taxes.
(2.) Moderate and small incomes. on
the other hand. are subject to far
srnaiiar rata NJ fawsfio hare than I'm