The Jasper weekly courier., 1918-04-12

$1,000 25-per cent D. @
(lf we add the so called "occupa-
tional" tax our total taxation on sn-
comes of $4,000 is 6x per cent and OF
incomes Of $4,000 ga 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 elss
and incomes up to $4,000 for marrisd
men not taxed at all.
CD 1t is true, on the other hand,
that on very large incomes-as dlstin-
guished from the largest incomes-our
income tax is somewhat lower than the
English tax. but the difference by which
our tax is lower than the English tax
Is incomparably more pronounced in
the case Of small and moderate incomes
than of large incomes.
The "Excess Profits" Tax Here and
Abroad.
Moreover, If we add TO our 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 10 which
rich men are subject is in the great ma
jority Of cases heavier here than i'm
England or anywhere else.
t4) 1t Is likewise true that the Eng.
lish war excess profit tax is so per cent
Qess various offsets and allowances).
whilst our SO called excess profit tax
ranges from 20 per cent. to 90 per
cent.
But 1t is entirely misleading TO base
a conclusion as TO the relative heayi.
ness of the American and British tax
merely on comparison Of the rates,
because the English tax is assessed ON
q wholly different basis from the Amen
lean tax.
The American excess profit law (so
calledo taxes all profits derived from
moderate percentage, regardless OF
or not such profits are the
result OF war conditions The Ameri-
can tax Is general tax on income de-
rived from business In addition tor
the regular income tax. The Eng
ish tax applies only to excess war
'rofts-that is. only TO the sum by
which profits In the war years exceed
he profits in the three years preceding
he war, which I'm England were years
IF great prosperity. In other words.
he English tax Is nominally higher
han ours, but Ii applies only 10 war
profits. The normal profits of business
Il. e.. the profits which business used
o make in peace time-are exempted
n England. There, only the excess over
'eaee profits its taxed. Our tax, on
he contrary, applies to all profits over
nd above a very moderate rate on the
money invested in business.
We Tax Normal Profits, They Tax Only
War Profits.
In short, our lawmakers have de-
reed that normal business profits are
axed here much more heavily than I'm
'ngland, while direct war profits are
lyed less heavily.
You will agree with me in question
lg both the logic and the Justice Of
lat method. IL would seem that il
Ould be both falrer aud wiser and
lore in accord with public sentiment
the tax on business I'm general were
and, on the other hand. an
lcreased tax were imposed on spe-
tic war profits
(5) Our federal inheritance tax In
lr higher than ii is in England or any,
here else. The maximum rate hers
4 direct descendants is 27Ia per cent
J against 20 per cent fin England. In
EDITION 10 that, we have state I'm.
sritance taxes which do not exist in
ngland
(6) OF her total actual war expen.
lures exclusive OF loans 10 her al.
IS and interest on war loans) Emo.
nd has raised less than IS per cent.
, taxation France and Germany far
ss), while America is about 70 rsise
; taxation approximately 28 per cent
her total war requirements (excIu.
We OF loans 10 the allied nations and
the amount to he invested I'm mer-
ntile ships. which. being a produc.
Te investment. cannot properly be-
lssed among war expenditures).
We men OF business are ready ana
ling 10 be taxed In this emergency
the very limit Of our ability and ta
Ike contributions 70 war relief work
q other good causes without stint.
e fact Is that. generally speaking.
pital engaged I'm business Is now
Ing taxed in America more hea vily
IN anywhere else in the world. We.
: not complaining about this: We do.
say that II may not become neces-
y 10 impose still further taxes: we
; not whimpering and squeallng and
tating. but-we do want the na,Dls
know what are the present rsctx
q we ask them not TO give heel TO-
J demagogue who would make them
ieve that we are escaping our shsru
the common burden