The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1918-09-27

as it relates to the national revenues
has two important and necessary
functions to perform, first, to furnish
the Government large portion of its
needed collections, second, to help the
Government dispose of its Liberty
Bonds at each new issue.
The GOvernment-the New Partner
in Business
Without profits it can perform
neither, and if incentive and ambition
of business be destroyed there will be
no profits. We must take care that
the goose that lays the golden egg be
not killed or disabled. The egg just
now is essential to the Government
and the survival of the goose is es-
sential to the egg. That is to say, in
any scheme of large tax levies, the
cupidity of business must be reckoned
with and, after payment of all taxes,
it must be left profits sufficient to pre-
serve the incentive of aggressive eff
forts to continue it's proft-making,
1t must continue to make efforts and
to make profits because the Govern
ment 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 Fixing Board,
should keep these considerations con-
stantly in view. Otherwise, Con-
gress might be forced to resort for the
greater portion of its revenues to di-
rect taxes on consumption. On the
other hand, the war needs of the coun-
try demand that Congress require of
business, corporate and individual,
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. Bus
mess, too, must be open and honest
with its new partner, and should so
control its cupidity and ambition as to
cooperate with glad enthusiasm in
all the aims and efforts of such part
ner
To get rich quick out of the war, or
during the war, will by the revenue
necessities of the Government hereaf-
ter be a forbidden indulgence. De-
signed profiteering and "blood-mon-
ey" making must cease. However, we
should be careful not to construe all
increase of incomes and profits since
the war as profteering and "blood-
money. Large imitation, or rather
expansion, or credits and the big diff
ference between supply and demand
have caused to be made immense pro-
fits. The man and the industry that
had the supply inevitably made extra
ordinary profits. Perhaps they will
continue to make such profits but will
not be able to appropriate so large a
part to their own use. The big new
partner will take heavy hand in the
appropriation 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 Offend
ers.
Wealth Will Not Be Penalized or
COnfscated
Wealth will not be penalized or con-
fiscated, but it will understand, of
course, that the Government must not
be paralyzed 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 incomes in excess of
any specified amount, now being agi-
tated by quite a respectable few.
| A comparison of the income tax re-
turns of corporations and individuals
for the years 19l4-the year the war
began-1916 and 1917 and the prodig
ious increase of incomes in 1917 over
those of 1914 furnish us sure start
ing point in the income and excess
profits tax program. Corporate net
incomes for the year 1914 amounted to
SO, $40, 100000; individual net income
amounted to $4,000, 900, 900, total in
come of $7,940, 100000.
In 1916 corporate net incomes
amounted to $3,765, 900, 600; individual
net incomes amounted to $4,000, 000,-
900, a total of S15,065, 100000. This
shows an increase of 1916 over 1914 in
corporate incomes of $4,825, 300, 900
and in individual incomes of $780,
100000, or an increase in both of ST.
125, 100000. While for the calendar
year lJli TIE TeIuTIlS nave lOJ as ySL
been completely tabulated, it is esti-
mated by the Treasury Department
that corporate incomes will reach
$40, 900, 100000 and individual incomes
will reach 100000, 900, or total of
both $17,000,000,000. Thus there was
an increase in 1917 over 1914 in cor
porative incomes of $4,000, 100000,
and individual incomes of $3,0O0,000,-
900, an increase in both of $9,060,-
100000. Assuming that for the calen-
dar year of 1918 the incomes, corpor-
ate and individual, will equal those of
1917, and they will, unless the Price
Fixing Board materially interferes,
and that we shall be compelled to
raise from such incomes and profits,
Sc, 900 100000, it can be seen that, if
proper adjustments are made, it can
be done without destroying or serious
ly Gripping business or confscating
incomes of corporations or individuals.
After taking the $6,000,000, 000--and
that amount may not be necessary
there will still remain to the individ-
ual and corporation at least $3,000,-
000,000 more income and profits than
in 1914, or about 40 per cent more.