The Barre daily times. (Barre, Vt.) 1897-1959, 1918-04-18
LARGE FORTUNES BEING TAPPED.
The Income Tax Is Doing 1t, Says Sam
uel Untermyer

uti OutciLlyci.
Pittsburg Pa, April ls.--Conscription
of incomes can not progress much beyond
its present scope without interfering too
seriously with production, asserted Sam
ucI Untermyer, New York lawyer and
the governments legal expert on the
Interpretation of income and excess prof
il tax laws, in an address, he delivered
here last night in the Liberty loan cam
paign.
The income tax, he declared, would
yield far in excess of what had been an
ticipated. Mr.. Untermyer also said that
American finance had entered new era
the exgencies of which were fast dis
posing of the once troublesome question
of swollen fortunes; that American cap
ital after the war would find its largest
work outside the country. He predicted
thai, in the United States, a considerable
share of capital would have to 20
through taxation, toward the support of
soeialistic institutions that the great
body of people who do the actual fight
ing in this war would demand of .he
government. Recalling that for twenty.
six years he had been a consistent cham
pion of the income tax at a time wher
it was regarded as reproach and so
clallstic assault upon property rights,
Mr.. untermyer said he had no tender
regard for the inviolability of great in
comes. He added:
If we could in the interest of the
prosperity of the country impose still
further taxation in that direction ] |
should be heartily in favor of doing so. !
1t is a question of governmental policy !
If the recent proposals to take all in |
comes in excess of 100000 per year
were not to my mind destructive of the |
very purpose sought to be obtained, ] |
would favor such a law, but ! believe |
that we have well nigh reached the Dor
der of safety in taxation on incomes
and business. Above all things we re-
quire in this crisis the stimulation of
production. Further substantial burdens
in that direction will serve only to pro-
woke evasion and to discourage and de-
stroy industry, initiative and enterprise.
1T is 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 these
additional burdens. There is
no effective way and there ought to be
none, of preventing man from distrib-
uting his property during his lifetime
1t is in the interest of the community &
that he should do so and under normal [
conditions it should be encouraged in {
every possible way. To prevent him from
making such distribution at this time q
would amount to confscation. G
by far the most serious objection, l
however to further taxation, is its effect t
upon enterprise which in these days in 1
wolves the investment of large amounts c
Of capital. When the government takes i
away the prospect of profits it destroys
the incentive for business risks which O
IS at the foundation of all industry The v
effect Of the taxation upon new enter f
,rises is already apparent. Why should
, man who is now paying an excess prof v
t tax averaging up to half of the profits il
If his business and is then paying an t
,ther 80 to 80 per cent by way of income
ak on what he receives after deducting
he excess profit tax he has already paid.
mt any of his money into new enter
rise. He takes all the risks of failure
gainst the government taking about go h
,er cent of the fruits of his success. Men
10 not under normal conditions embark G
n business from patriotism or sentiment,
mt for gain" t,
There is feeling among financial ex a
erts, said Mr.. Untermyer, that some ri
hing like the present heavy taxation 8
les before the country as permanent Il
rogram, to meet interest and sinking n
und requirements of the great new q
onded indebtedness. a vast merchant "
larine and probable preparedness pro- "
ram. ia
'These," he said, point to future bud pl
cts that look appalling when measured al
v the requirements of the past. When
-e add to this the vast program of So fo
al reform that will be justly demanded n,
this country a. in all other parts of
he civilized world, il requires little in di
ne way OF vision to realize that we are
ntering upon g new era and one which fiji
Is to be hoped, will make for juster sc
nd better national life We shall have bu
d age pensions and insurance against su
ckness and unemployment. TO all of
hich the government will contribute. 50 RI
lat the toilers shall have a more just NJ
in the prosperity that they
cate. 81