El Paso herald. (El Paso, Tex.) 1901-1931, 1918-09-11
TAX BURDEN IS
NOT So SEVERE
Ours Is Much Lighter Than
England's; Smaller Than
That of France.

new war tax bill, by which is to be
raised one-third Of the $4,000, 600. 600
needed to finance Americas share OF
the world war during the coming fis-
cal year. is the greatest piece Of leg
islation Of the kind ever attempted by
a congress Of the United States. It
touches probably every taxable source
and is intended TO place the bulk Of
the burden where it belongs and make
every citizen share the cost Of the
fight for democracy
Far reaching and inclusive. yet the
tax burden is said 10 be not as heavy
as that upon the people of England.
II is also claimed it viii not work
the hardship nor demand the self
sacrificing which has fallen TO the
lot Of either the English or the
French.
English Taxes Always More severe
The tax laws of England have ever
been more severe than those Of the
United States 1t is only natural
then, that England's war taxation
should be prOportionately heavy. II
must also be remembered that Eng
land, being so near the fighting zone
and surrounded by waters infested by
enemy submarines has had her COM
merce embarrassed and her rich i'm
port duties, once the heaviest in the
world, somewhat reduced. In addi-
ton to that. the demand for man
power for the army has taken labor
from factories. Home industry has
been paralyzed-
English Loans and Taxes.
England has, therefore, been COM
PEELED 20 rely almost entirely upon
Ioans-foreign and domestic-aud
upon a system OF internal taxation
levied upon Incomes. excess profits
and Injuries. The same is true OF
France and the other allied countries.
English income and profits taxation
has been classified under five sched-
ules as follows; fa) Landlords prop
erty tax; (b) farmers tax. Co tax
on holders Of government securities;
td) tax on business profits. profess
siOnal incomes and on sources Of in
come not included under any other
schedule; (e) tax on salaries OF pub
lie officials and employees.
The properties. profits and gains on
which income tax is payable and
which fall under these schedules are
subject 10 an assessment on every
pound sterling OF their values.
Tax on Property.
Under the first schedule. every per-
son deriving an income from property
is taxed. these taxes being payable by
$40 A--1r-- A----hf- -@-eo NA-- A-A
question
The second schedule. or farmers
tax, is almost identical with the first
except that the taxable value OF the
land Is fixed by law instead OF the
tax being levied against the actual
income derived from this land.
All incomes. whether in the forms
OF interest annuities. dividends. or
shares OF annuities arising out OF any
public revenue, are subject 10 taxa
ton under the third schedule. The
tax Is assessed at its source. before
the taxable income reaches the tax
payer, upon the persons and cOrpor-
atoms entrusted with the payment Of
such income. Interest on certain war
loans are exempt under the schedule
Business Profits.
The tax on business profits, pro-
fessional incomes and on incomes not
included under the regular schedules.
Is so Tar reaching that Il touches
practically every source except the
incomes Of charitable trusts and or
limitations and certain trade unions
The rate is applied to all incomes eX-
ceeding $50 pounds a year. with GER
tain attachments which decrease pro-
porionately as the incomes increase
The abatement is more generous and
the rate lower upon earned incomes
than upon those which are unearned
soldiers Pay Taxes
The incomes OF the men in the army,
navy and Red Cross are also subject
to taxation, but in these cases reduced
rates are made.
Under the fifth schedule falls the
incomes OF all employees Of the crown
as wei as OF all ecclesiastical bodies
The income taxable under this sched-
ule is not merely that received in
payment Of current services. but also
all annuities. pensions. stipends and
even Easter offerings made 10 cler-
gymen by their congregations
The English system Of luxury duties
IS just as inclusive as that OF the
the two measures, English and Amer
leans. are almost identical
Raises TwO-thirds BY Loans.
Like the United States. England has
made IL a rule to raise about one
third OF the amount she needed for
war purposes through Internal taxa
tion. For the remainder she had re-
course to loans and credits OF which
the United States has furnished So
345 00O. 000
Canada has also issued $3.50. 600. 900
OF domestic loans, about $50. 100000 Of
which was taken by American banks.
The Australian war loan has amount
ed to $3.50. 413. 900, while that OF New
Zealand totals s107.053.0O0. India
raised one loan OF 100000. 900 which
was advanced to Great Britain
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