South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-07-23
Other Editors Than Ours
EQUITABLE TAUNTON TO FINANCE WAR.
lBy Corden Hun. TaxatiOn ENpert.l

The passage of the federal reserve act and the fed
era income in 1913 constituted far the two most
notable steps fiscal reform taken by the United
States government in its entire history The enactment
both OF these laws OF such fareaching aud emen-
dous importance. marked the elimination of protacted
efforts extending over many years 10 substitute mod
ernzed and efficient fiscal legislation I'm each instance
the veritable patch systems OF finance ard rev
enue long i'm operation. The growing public 1ppre-
perienced and realized become greater and sreater
with the passing years.
devised adopted any comprehensive, scientific system
taxation mainly because revenue demands were
the defects and shortcomings OF the partial and op-
sided system some years, least fol-
lowing war, the government will doubtless lind it.
self obliged impose taxes for normal purposes to an
amount OF $4,OOO,O0O,0O0, or the rise.
The necessity for broad, sound and equitable sys-
tenn of federal taxation now becomes inevitable Under
former wealth escaped the chief portion of its
just The middle and classes bore
the burden The had its origin in the two
fold purpose of equalzing burdens and providing
adequate This is today playing tremen-
dous part in the financing of the war
people yet realize the frightfu position i'm which
the government would have found itself I'M its efforts
20 provide except for the fact that the
income tax movement. during previous years had
suited in the amendment the constitution and the
enactment OF income law which had been got
well into operation when the war and still
less they realize the service thus rendered
the country this wise, though i'm measure uncon-
scious preparation for the war that was soon to follow"
Wealth for the inst time, bears its shares of taxes.
Many persons have had the erroneous impression that
tariff from ineNhaust0le source of rev.
capable the most extraordinary eXpen-
ditures tapped will by the federal
ment The truth is that the maximum yield of tariff
taxes for any given year GOO 600
AS far back 1903 the trainers Of the Payne tariff law
in search under normal conditions OBJ
liged internal taxes as means of supple
mentng the estimated deficient tariff tax yield To this
end they incorporated graduated inheritance
provision and taxing coffee. Later these provisions
were eliminated and corporation excise provision sub
sttuted
The largest amount that could possibly be derived
from, customs sources i'm the future Will not exceed
between 100000 $500 600 600 Unless laid upon
sugar cofee tea. etc supremely ridiculous to
suggest larger tax at the custom house. only
fiscal year were manufactured goods-but little more
than one-eishth-whe the chief imports consisted OF
foodstuns materials tax which general eX-
tent this time would be criminal. Besides The IN
crease imports has been in value rather than guam
Values have doubled during the war and so This con
dition makes showing of imports, but the guam
tty greatly changed from the pre-War figures
while the quantity of manufactured mports-the kind
chiefly dutable under any kind OF tarithave great
~ fallen or. and strange to say the present inflated
values of such imports quite great they
were for cor espondng period Of the Payne tariff law
ending in 1918.
An nations agree that the tariff is VIGOROUSLY I'M
relis Die and inefficient Nen2e producer time OF
war The result is that AN notions at war turn To in
ternal taxation for their chief revenues.
must. therefore. establish large permanent sys-
internal taxation the only means of meeting
.
Guiding debt which will confront the
government during the years that follow the The
income viii uuquestonab bly, be looked
producing method m this system. The income
and the added excess proht tax viii yield So
OOo.UUGUUO 1917 and probably than s.. 600
100000 for 1915. of which amount the income tax
proper should comprise the larger portion Before the
war Lloyd George declared the English income tax
.the center and the sheetsnchor of our financial
system
This tax has forced way into the fiscal systems
almost every civilized country 10y reason OF its in
herent souudness and efficiency as method taxa
Its underyirg principle is tfn citizen should
pas i'm proportion 90 has ability. and that
come il the best of such ability By many il
characterized enloodying the Golden Rule
OF taxation. This equitable elastic and produc
tive Every citizen accordingly ne has prospered
during the year He that bis fair He also
that every other citizen viii i'm relative
portion and is therefore content with his portion
whether he large small according 20 the
mentS needs