Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1918-03-07
1.-THE RICH MANS WAR
AHATEfljL CALI)ANY'
American Business Men Ready to
Make Sacrifices With
out Stint.
TAXES HERE AND ABROAD.
American Taxation the Most Demo-
cratic in the World.
TAXES HERE AND ABROAD
BY OTTO RI. KAHN.

Nothing Is palmer than that busi-
ness and business men had everything
to gain By preserving the conditions
which existed during the two and
half years prior to April, 1917, under
which many of them made very large
profits by furnishing supplies. proyi
si0ns and financial aid to the allied
nations. Taxes were light, and this
country was rapidly becoming the
great economic reservoir of the world.
Nothing Is palmer than that any sane
business man in this country must have
foreseen that, If America entered the
war, these profits would be immensely
reduced and some Of them cut off en-
tirely, because our government would
step in and take charge; that 1t would
cut prices right and left, as, in fact, 1t
has done: that enormous burdens Of
taxation would have to be imposed, the
bulk of which would naturally be borne
by the well-to-do; in short, that the I'M
precedented golden flow into the cot
fers of business was bound to stop with
our Joining the war, or, at any rate, to
be much diminished.
But 1t is said the big financiers of
New York were afraid that the money
loaned by them to the allied nations
might be lost If these nations were de-
| feated, and therefore they Unanswered
to get America into the war In order to
| save their investments.
Proof That the Charge ls Absurd.
| moments reflection will show the
utter absurdity OF that charge. Let US
assume, for arguments sake, that the
allies had been defeated. Let US make
the wildly improbable assumption that
they had defaulted for the time being
upon these foreign debts, the greater
part of which, by the way, Is secured
| by the deposits of collateral in the
shape of American railroad bonds and
stocks and of bonds Of neutral coun
tries, aggregating more than sufficient
In value to cover these debts. Let Us
assume that the entire amount Of al
lied bonds placed in America had been
held by rich men In New York and the
east instead of being distributed, as 1t
Is, throughout the country,
Is it not perfectly manifest that a
single years American war taxation and
reduction of profits would take out Of
the pockets of such assumed holders
vastly greater sum than any possible
loss they could have suffered by de-
fault on their allied bonds, not to men
ton the heavy taxation which is bound
to follow the war for years to come
and the shrinkage of fortunes through
| the decline OF all American securities
in consequence of our entrance into the
war?
Not only is the erich mans war" an
absurd myth; the charge is hateful
! calumny.
Business men. great or small, are no
different from other Americans, and
we reject the thought that any Amer-
can, rich or poor, would be capable of
the hideous and dastardly plot to
bring upon his country the sorrows
and sufferings of war in order to en-
rich himself Business men are bound
to be exceedingly heavy financial losers
war. Every element Of self-interest
| should have caused them to use their
utmost efforts TO preserve America 9
neutrality, from which they drew so
much profit during the two and half
years before April, 1917. Every con
| sideration of personal advantage COM
manded men of affairs to stand with
and support the agitation of the peace
| at-any-price" party They spurned
that affiliation; they stood for war
| when it was no longer possible, with
safety and honor, to maintain peace,
| because they are patriotic citizens
| first and business men afterwards.
| Our Income Tax and Taxes Abroad
ID The largest incomes are taxed
| far more heavily here than anywhere
| else in the world.
The maximum rate Of income taxa.
| ton here Is 81 per cent. In England
it is 421a per cent. Ours is therefore
so per cent higher than England's. and
the rate IN England is the highest pre-
,ailing anywhere in Europe. And In
addition to the federal tax we must
bear in mind our state and municipal
taxes.
Cd Moderate and small incomes, on
the other hand are subject to a far
smaller rate of taxation here than In
England
In America incomes Of married men
up TO $1,000 are not subject to any
federal income tax at all.
In England the income tax is:
z per cent. on $1,000
So
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