The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1918-03-14

| NA we HUI Tue 80 Cdlieu TOCCupd-
tional" tax our total taxation on in
comes of $4,000 is e& per cent. and on
incomes Of $4,000 9% per cent?
In other words, our Income taxation
10 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 else
and incomes up 20 5000 for married
men not taxed at all.
CD 1t Is true, on the other hand,
that on very large incomes-as distin-
guished from the largest unconscious
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, II 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 TO which
rich men are subject is in the great
majority Of cases heavier here than In
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 60 per
cent.
But 1t is entirely misleading to base
conclusion as TO the relative heavi-
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
lean tax.
The American excess profit law ESQ
caIled) taxes all profits derived from
business over and above certain
moderate percentage. regardless of
whether or not such profits are the
result of war conditions. The Ameri-
can tax is a general tax on income de-
rived froro business in addition to
the regular income tax. The Eng
llsh tax applies only to excess war
profits-that Is, only to the sum by
which profits In the war years exceed
the profits In the three years preeed-
ing the war, which in England were
years Of great prosperity. In other
words, the English tax is nominally
higher than ours, but It applies only to
war profits. The normal profits of bust
ness. e., the profits which business
used to make In peace time-are ex-
empted in England. There, only the
excess over peace profits is taxed. Our
tax, on the contrary, applies to 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.
In short, our lawmakers have de-
creed that normal business profits are
taxed here much more heavily than in
England, while direct war profits are
taxed less heavily.
You will agree with me In question
ing both the logic and the justice of
that method. 1t would seem that 1t
would be both fairer and wiser and
more in accord with. public sentiment
If the tax on business in general we're
decreased and, on the other hand, an
increased tax were imposed on specific
war profits.
(5.) Our federal inheritance tax Is
far higher than 1t is in England or any.
where else. The maximum rate here.
on direct descendants is 27k per cent.
as against 20 per cent. in England. In
addition to that, we have state inner
itance taxes which do not exist In Eng
land.
(6) OF her total actual war expen-
ditures Exclusive OF loans to her al
lies and interest on war loans) Eng
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 to be invested In mer-
camille ships, which. being a produc-
tive investment, cannot properly be
classed among war expenditures.
We men of business are ready and
willing TO be taxed in this emergeHcy
to the very limit OF our ability and TO
make contributions to war. relief work
and other good causes without stint.
The fact is that, generally speaking.
capital engaged in business is now
being taxed in America more heavily
than anywhere else In the world. We
are not complaining about this; we do
not say that II may not become neces-
sary 10 impose still further taxes we
are moi whImpering and squealIng and
agitating, but--we do want the people
10 know wba. are the present facts,
and we ask them not 10 give heed to
Ire delnagogne Who t~a',ld make them
believe fhnf y. are sS,slping our share