Mansfield mirror. (Mansfield, Wright County, Mo.) 1908-1957, 1918-03-21
In America incomes OF married u.es
an to 5000 are MOI subject to any ten'
eral income tax at all.
In ENGLAND the Income tax 10:
AZ per cent. OF $1,000
SA 1900
~ 1000

rate on England. America
$4,000 II per cent. a-s of Up. g
ls Der cent. IN y. o
10. 900 20 per cent. IA p G
$1,000 sS per cent pc
III we add the SO called "occupa'
tional" tax our total taxation on IN
comes of $1,000 is 6& per cent. and ON
incomes Of $4,000 aA 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 more lightly than anywhere else
and incomes up to $1,000 tor married
men not taxed at all.
49, 1t is true, on the other manu.
that on very large lncomes-as distin-
guis.,ed from the largest incomeS-our
income tax is somewhat lower than the
English tax. but the difference by when
our tax is lower than the English tax
is in~comparably more pronounced in
the case Il small and moderate incomes
than of large incomes.
The excess Profits" Tax Here and
Abroad.
Moreover, if we add to Il income
tax our 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 INA
jority of eases heavier here than IN
England or anywhere else.
l4.) Ii is likewise true that the Eng
lish war excess profit tax Is 80 per cent.
less various Offsets and a~llowances).
willis, our so cslIed excess profit tax
ranges from 20 per cent. to 60 per
cent.
But 1t 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
n wholly different basis from the Amer.
lean tax.
The American excess profit law ESQ
ealled) 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 Amer
: can tax is a general tax on income de
rived from business in addition t.
$ the regular income tax. The Eng
iish tax applies only to excess wa
, ~profts-that is, only to the sum b!
which profits In the war years exceed
the profits in the three years p~recedin!
,he war, which In England were year
of great prosperity. In other words
" the English tax is nominally highe
v than ours. but 1t applies only to wa
profits. The normal profits OF bushes
a Il. e., the profits which business Use
e 10 make In peace time-are exempted
in England. There, only the excess owe
peace profits its taxed. Our tax. o
the contrary, applies to all profits owe
=, and above a very moderate rate on tn
money invested in business.
in We Tax Normal Profits, They Tax On
War Profits.
In short, our lawmakers have d
- creed that normal business profits al
,ay.d here much more heavily Than
England, while direct war profits u
taxed less heavily.
Il" You will agree with me in quest!o
~ ing both the logic and the justice
ri. ina method. 1t would seem that
of would be both falrer and wiser III
:, more in accord with public sentiri"
If the tax on business In general We
We decreased and, on the other hand,
en- Increased tax were imposed on 81
nd citlc n profits.
o.. ca Our federal inheritance tax
-, far higher than 1t Is in England OF al
N"e where else. The maximum rate h.
est Oh direct descendants is 2Th per ce
cir as against 20 per cent. In England.
addition to that, we have state
a, h~eirItauce taxes which do not exist
o.
al, England.
90 Of her total actual war exr
"" dttures Exclusive OF loans to her
DIT lies and interest on war iOans) e.
18th land has raised less than IS per &C
ICE by taxation (France and Germany
ned less), while America 10 about to "a
ted by taxation approximately 20 per &c
,,.r OF her total war requirements (exr
s,ve of loans to the allied nations II
of the amount TO be Invested In III
camille ships, which, being a prod
ems five investment, cannot properly
classed among war expenditures).
= We men of business are ready
willing to be taxed In this emerg"
' to the very limit Of our ability and
ere make contributions to war relief W
and other good causes without st
lxa. The fact Is that. generally speak
d 1t capital engaged In business is
. 70 being taxed In America more hea
and than anywhere else In the world.
~. are not complaining about this; wt
not say that II may not become ne
sary to impose still further taxes:
are not wlimpering and squealing
ipal o,itatinr. but-we do want the pc,
TO know what are the present III
/, on and we ask them not to give hee'
far the demagogue who would make t
n in believe that we are. escaping our 81
Of the common burden.
This means that commanders
nrallu will avail thpmGelYeH Of