Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-04-18
CANNOT DRAFT
INCOMES, SAYS
N. Y. TAX EXPERT
Interfere With Pro-
duction Of U. S. Says y
Untermyer.

P%ittehurE, Pa. April 1S.-Conscrip-
ton of INCOMES can not progress
much beyond its. present scope with
out interfering too seriously with pro-
duction, asserted Samuel Untermyer,
New York lawyer and the govern
ment's Legal expert on the interpre-
station of income and excess-proft tax
laws, in an address he delivered, here
last night in the Liberty Loan cam
paign. q.
The income tax, he declared. would
yield far in excers of what had been
anticipated. Mr.. Untermyer also said
that American finance had entered a
new era the exigencies Of which were
fast disposing of the once trouble
Some question of swollen fortunes:
that American capital after the war
would find its largest work outside the
country. He predicted that, in the
United States, q considerable share of
capital would have to 20 through
taxation, toward the support of So
cialistic institutions that; the great
body of the people who do the &C
tual fighting in this war would de-
mand Of the government. Recalling
that for twenty-six years he had been
a consistent champion of the income
as a reproach and a socialtstic assault
upon property rights. Mr., Untermy-
er said he a no tender regard for
the inviolability of great incomes. He
added:
IF We could in the interest of the
prosperity Of the country impose still
further taxation in that direction I
should be heartily in favor OF doing
so. 1t is a question Of governmental
policy. If the recent proposals. to
take all incomes in excess OF 800, 900
per year were not. to my mind de-
|~structive of the very purpose sought
ito be obtained, I would favor such
a law. but ! believe that we have
well nigh reached the border Of safe-
ty in taxation on incomes and bust
ness. Above all things we require in
} this crisis the stimulation OF produce
ton. Further substantial burdens in
that direction will serve only to pro,
woke evasion and to discourage and
! destroy industry, initiative and enter
prise.
Encourage Distribution. {
"1t is, a fact known to those among
US who have to deal with this subject
that many great fortunes have been
and are being distributed from fear, OF
There Is no effective wy and there
ought to be none. Of preventing 4 mar
from distributing his property durinG
hie lifetime. 1T is in the interest OF
the community that he should do "a
and under normal conditions. It should
; be encouraged in every possible way
{ TO prevent him from making kucf
!. distribution at this time would
amount to ~confscation.
by far the most serious objection
however. to further taxation. is III
effect upon enterprise which in thes,
: days involves the investment Of lArg,
amounts Of capital. When the gov
eminent takes away the prospect o
j. profits it destroys the incentive To-
i business risks which is ct the foun
: dation Of. all industry. The sheet 0
: the taxation upon new enterprises
man who IL now paving an exces
{ profits Of his business and ieN the
paying another 80 to So per cent b.
way Of income tax on whatSfhe Re
= icetvesg after deductihS the exces
lpreAt tax. he has already paid. pu
Gany Of his money into anew enter
y Iprtee. He takes all the risks OF fail
: uro against thu government takii
about so per cent Of the fruits Of hi
success. Men do not under Norma
. conAitans embark In business frof
patriotiSn Or sentiment. but 70
gain" 49,
Taxes May BE- HA9vy.
There 10 !. feeling mo ainAncis
experts.seaid Mr.. Interl1yer, thu
/ something likegthe present heavy tax
alton I lies before the country ~
permanent. program, to meet interei
land MnkihE fund r~eduirementa 81 tn
great new bonded indtbtedne1s y va