The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1918-03-29
American Business Men Ready to
Make Sacrifices With
out Stint.
TAXES HERE AND ABROAD.
American Taxation the Most Demo
cratic In the World.
BY OTTO 4. KAHN.


existed during the two and a half years
prior TO April. 1917, under which many
of them made very large profits by fur,
nishlng supplies. provisions and inan-
cial aid to the allied nations. Taxes
were light. and this country was rap
idly becoming the great economic res
ervoir 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 OF en-
tirely, because our government would
step In and take charge that 1t would
cut prices right and left, as. in fact, II
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 Golfers
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 fnanciers Of
New York were afraid that the money
loaned by them to the allied nations
might be lost II these nations were de
feated. and therefore they Unanswered
to get America into lie war in order to
save ther inves mei.s.
Proof That ne Charge 10 Absurd.
A moment reflection win 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 dsfaulted 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 eoun.
tries. aggregating more than suffieient
in value to cover these debts. Let ne
assume that the entire amount Of al
lied bonds placed in America had beer
held by rich men in New York and the
east instead Of being distributed. a. II
is, throughout the country.
L. 1t not perfectly manifest that .
single years American war taxation ane
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 ano
the shrinkage Of fortunes through the
decline of all American securities In
consequence Of our entrance into the
war;
Not only il the erich mans war; ar
absurd myth; the charge is hateful
calumny.
Business men. great or small. are nc
different from other Americans, anc
we reject the thought that any Ameri
can, rich or poor. would be capable OF
the hideous and dastardly plot te
bring upon his country the sorrowI
and sufferings Of war in order to en-
rich himself. Business men are bound
to be exceedingly heavy financial lcsers
through Americas entrance into the
war. Every element of self-lnteresi
should have caused them to use theIi
utmost efforts to preserve American,
neutrality, from which they drew sc
much profit during the two and hall
years before April 1917. Every con
siderauon Of personal advantage. com
manded men of affairs to stand witt
and support the agitation Of the peace
at-any-price" party. They spurnee
such lgnoble reasoning; they rejected
that utilization: they stood for wal
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.
(1.) 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 ri
Is 42M per cent Ours is therefore &c
per cent. higher than England's, and
the rate in England is the highest pre-
vailing anywhere In Europe And ln|
addition to the federal tax we musi
bear In mind our state and municipal
taxes.
f2.) Moderate and small Incomes On
the other hand, are subject to IA,
smaller rate Of taxation here than b
England.