The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1918-03-19

tSV"p 80 per cent. y. G.
4 pf We aud the 80 called "occupa.
tionalP tax our total taxation Oh in
comes Of $4,000 is 8A per cent. and
on incomes Of $4,000 oE. per cent?
In other words, cur 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 elss
and incomes UP to $1,000 for married
men not taxed at ail.
tS) IL IL true, on the other hand,
that OH very large incomes--as disrin-
Suislied from the largest incomcs-Our
income tax. IL somewhat lower than
the English tax, but the difference by
which our tax Is lower than the Eng
lIsh tnN is incomparabiy more pro.
n"uhced ia tho ease Of sniall and mod.
crate incomes .hat of large incomes.
The "Excess rroat;" Tax Here and
Abroad.
Moreover, .if We add to our income
lax our SO called excess profit tax"
which is merely an additional income
tax oil earnings derived from busl-
ness. we shall find that Tic total tax
TO which rich men ore subject IS in
the great majority of cases heavier
here than in England or anywhere
else.
~ II IL likewise true hat the Eng
iish war excess profit tax Is 50 per
cent. Qess various offsets and allow
ances). whilst our 60 car~d excess
profit tax ranges from ~ per cent. TO
GO per cent.
But II IS entirely misleading to base
a conclusion as 10 the relative heavi.
ness of the American and British tix
merely on comparison Of the rates,
because the English tax is assessed
on wholly different basis from tho
American tax. ''
The American excess profit law $50
ealied) 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 n general tax OH income de,
rived from business IN addition tn
the regular income tax. Ths Eng.
lish tax applies only to excess war
Profts-thnt is, only 10 the sum
by which profits In the war years
exceed the profits In the three years
preceding the war. which in. England
were years OF great prosperity. In
other words, The English tax is nomi.
nally higher than ours, but It applies
only 10 war profits. The normal prof
Its OF hus!ness--i. e., the profits which
business used 20 make in peace time
are exempted in England. There, only
tho excess over peace profits 10 taxed.
Our tax, on the contrary. applies to all
profits over and above very moder.
aic rate on the money invested in
business
We Tax Normal Profits. They Tax Only
War Profits.
In short, our lawmakers have de-
creed that normal business profits are
taxed here much more heavily thnn
in England, while direct war profits
ure taxed less heavily.
You Will agree with inc IN question
ing both the logic and the Justice of
that method. II wOuiG seem that It
would be both fn!rer and wiser and
more IN accord with public sentiment
If the tax OIL business in general were
decreased and, on the other hand, an
increased tax were imposed on spe.
cifc war profits.
(5.) Our federal inheritance tax is
far higher than II is In England or
anywhere else. The maximum rate
here on direct descendants Is 2Tiia per
cent. as against 20 per cent. III Eng.
land. III addition 10 that. we have
state Inheritance taxes which do not
exist In England.
(8) or her total actual war expen-
diturcs (exclusive OF loans to her al
lies and interest on war loans) Eng
land has raised less than IS per cent.
by taxation (Frnnce and Germany far
less). while America 10 about to raise
by taxation approximately 2s per cent
OF her total war requirements (exclu-
sive OF loans to the allied nations and
of the amount TO be invested IN mer.
camille ships. which, beIng produc-
tive investment. cannot properly be
ciassed among war expenditurcs).
We men of business are ready and
willing to he taxed In this emergency
TO the very limit Of our ability and 10
make contributions TO war relief work
and other good causes without stint.
The fact is that. generally speaking.
capital engaged In business Is now
being taxed In America more heavily
Than anywhere. else In the world We
are not complaining about this; we do
not say that II may not become ueces-
sary to Impose still further taxes; we
nre not whimpering and squealing and
agitating, but-we do want the people
TO know what are the present facts,
and we ask them not TO give heed to
the demagogue who would make them