Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1918-04-04

income tax In In
rate on England. America
$4,000 II per cent. Up. c.
1000 l6 per cent. IL p. @,
lO'0ov 70 per cent. 81 D. c.
iS'VVV 20 per cent .. C.
or we add the so called "occupn-
tIonal" tax our total taxation on In
comes Of $4,000 is 6% per cent and on
incomes of $4,000 OK per cent?
In other words, our income taxation
Is fnore 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 for married
men not taxed at all.
CD II Is true, on the other hand,
that on very large incomcs--as dlstin-
gulshed from the largest incomes
Income tax Is somewhat lower than the
English tax, but the difference by which
our tax IL lower than The English Tux
Is incomparably more pronounced IN
the case of small and moderate Incomes
than Of large incomes,
The Excess ProHts" Tax Here and
Abroad.
Moreover, II we add 10 our income
TAX our SO called excess profit tax,
which Is merely an additional Income
tax on earnings derived from business.
W. shall find that the total tax to which
rich men are subject Is IN the great
majority Of cases heavier here than IN
England or anywhere else.
90 II Is likewise true that the Eng
fish war excess profit tax Is so per cent.
tlcss various Offsets aud alluwances)
willis, our so called excess profit tax
ranges from 20 per cent. to GO per
cent
But Il Is entirely misleading 20 base
o conclusion ~ To he relative heayl
ness Of the American and British tax
merely on a comparison Of the rates
because the English tax Is assessed on
a wholly different basis from The Amer.
lcun tax.
The American excess profit law ESQ
eaIIedl taxes al profits derived from
business over and aboyg--a certain
ttedeiRle-. pepeUYfTFT regardless ~
shsshcr % moi such profits are me
result 81 wHr conditions The Amerl.
can tax II q general tax on income de.
rived from business 10 addition to
the regular income tax. The ENG
llsh tax applies only 70 excess war
profits that is, only 10 the sum by
which profits IN the war years exceed
the profits 10 the three years preced.
Ing the war, which in England were
years Of great prosperity. In other
words. the English tax Is nomInally
higher than ours, but II applies only 10
war profits. The normal profits OF bust.
ness--i. e., the profits which business
used 20 make IN peace time are ex.
emp,ed In England There, only the
excess over peace profits ls taxed. Our
tax, on the contrary, applies 10 all
profits over and above a very moderate
rate on the money invested in bust.
ness
We Tax Normal Profits, They Tax Only
War Profits.
Ia snort. our lawmakers have do.
creed that normal business profits ara
taxed here much more heavily than lu
England, while direct war profits are
taxed less heavily.
You viii agree with me In question.
Ink both The logic and the Justice OF
that method II would seem thar n
would be both falrcr aud wiser and
more ia accord with public sentiment
II the tax on business IN general were
decreased and, on the other hand, an
Increased tax were imposed on specific
war profits
(5.) Our federal inheritance tax n
far higher than II is In England or any.
where else The maximum rate here
on direct descendants Is 27h per cent.
as against 20 per cent. In England. I'm
addition TO that, we have state inner.
ttnnce taxes which do not exist in Eng.
land
t0) OF her total actual war expen.
dltures Exclusive OF loans to her MI.
lies aud interest on war loans) Enc.
land has raised less than is per cent.
by taxation (France and Germany far
less), while America is about to raise
by taxation approximately 20 per cent
OF her total war requirements (exclu-
siye OF loans TO the allied nations and
OF the amount 10 be Invested IN mer.
camille ships, which, being a produc.
tive Investment oannct properly be
classed among war sxpendltures)
We men OF business are ready and
willing 10 &c taxed In this emergency
TO the .ery limit OF our ability and TO
make contributions 10 war relief work
aud other good causes without stint
The fact Is that, generally speaking
capital engaged In business Is now
being taxed II America more heavily
than anywhere else IN the world. w
are not complaining about this we do
not say that II may not become neces
sary 60 impose still further taxes; we
ere NJ; whimpering and sqnealing and
agitatlng, hut--we 10 want the people
to know villa are The present fncts
and WI ask tncm not to give heed to
re demngogue Who would make them
believe that we are escaping our share
of the common burden.