Courier Democrat. (Langdon, N.D.) 1891-1920, 1918-04-18

1o,uVo 20 per cent. p. g.
, Qf we add the so called "occupa-
tional" tax our total taxation on in
comes of $4,000 is 6A per cent. and on
Incomes of $4,000 OK per cent?
In other words, our income taxation
Is more democratic than that Of any
other country in that the largest In.
comes are taxed much more heavily
and the small and moderate Incomes
much moro lightly than anywhere else
and Incomes up to $4,000 for married
men not taxed at all.
(S.) 1t Is true, on the other hand,
that on very large incomes-as distln.
guished from the largest incomes-our
income tax Is somewhat lower than the
English tax, but the difference by which
u tax Is lower than the English tax
Is incomparably more pronounced In
the cas- of small and moderate incomes
than of large incomes.
The "Excess Profits" Tax Here and
Abroad.
Moreover, If we add to our income
tax u so called excess profit tax"
which is merely an additional income
tax on earnings derived from business,
we shall find that the total tax to which
rich men are subject Is in the great
majority Of cases heavier here than in
England or anywhere else.
a. 1t is likewise true that the Eng.
lish war excess profit tax is 80 per cent.
Oess various offsets and allowanceO,
whilst our so called excess profit tax
ranges from 20 per cent. to go per
cent. -
But it is entirely misleading to base
a conclusion as to the relative heavi.
ness of the American and British tax
merely on a comparison of the rates,
because the English tax is assessed on
a wholly different basis from the Amer
lean tax.
The American excess profit law ESQ
caIIed) taxes all profits derived from
business over and above a certain
moderate percentage, regardless of
whether or not such profits. are the
result Of war conditions. The Ameri-
can tax is a general tax on income de-
rived from business In addition to
the regular income tax. The Eng
Iish tax applies only to excess wal
profits-that is, only to the sum by
which profits in the war years exceed
the profits in the three years preced-
ing the war, which in England were
years Of great prosperity. In other
words, the English tax is nominally
higher than ours, but it applies only to
war profits. The normal profits of bust
ness-i. e., the profits which business
used to make in peace time-are ex.
empted in England. There, only the
excess over peace profits is taxed. oul
tax, on the contrary, applies to al
profits over and above a very moderate
rate on the money invested in bust
ness.
We Tax Normal Profits, They Tax onl
Mar Profits.
In short, our lawmakers have de
creed that normal business profits ar
taxed here much more heavily than fl
England, while direct war profits ar
faxed less heavily.
You will agree with me in question
ing both the logic and the justice o
that method. 1t would seem that /
would be both fairer and wiser an,
more in accord with public sentimen
if the tax on business in general wei
decreased and, on the other hand, al
Increased tax were imposed on specif
: war profits.
90 Our federal inheritance tax
far higher than it is in England or am
t where else. The maximum rate her
on direct descendants is 27R per cen
as against 20 per cent in England. I
addition to that, we have state inhel
} itance taxes which 90 not exist in Enc
land.
60 OF her total actual war exna
i diturcs Exclusive of loans TO her a
lies and interest on war lOanS) Enc
land has raised less than Is per cen
by taxation (France and Germany ia
Iess(, while America is about to rails
! by taxation approximately e per cen
/ Of her total wal requirements (eXcll
y siye Of loans to the allied nations an
OF the amount to be invested in me
5 camille ships, which, being a produ,
tive investment, cannot properly L
claSscd among war eXpenditures).
We men OF business are ready ar
4 willing to be taxed in this cmergent
@ to the very limit Of our ability and
make contributions to war relief wol
and other good causes without stir
The fact is that, generally speakin
u capital engaged in business is no
. being taxed in America more hcavi
d than anywhere else in the world. "
. are not complaining about this we
n not say that it may not become ncco
# sary to impose still further taxes; v
>, are not whimpcring and squea!ing al
ngitating, but-we do want the peon
to know what are the present fac
"a and we ask them not to give heed
r the %demagogue who would make the