Evening journal., 1918-08-05
BY HON. cLAUD mTCHIN
Chairman. U. 8. House OF Represents
lives, Comnoiftea On Maze and Man,

Chairman. u. g. House OF Representa-,
lives Committee on Ways and Means
tThe following important and timely
article, from the Forum for August
which is published today, is printed by
special arrangements with that maya
zine.-Editor.)
The administration, through the sec
rotary Of the treasury, announces that
TO properly finance the government for
the fiscal year ending June 30, 1919. II
Is necessary to raise by taxation, In
addition to the amount now being
raised under existing law, 100000, 900,
or a total taxation Of ss,0OOO00,OOO.
When one contemplates the enorm-
GUS amount of bond Issues, which,
without this larger tax levy, must be-
come necessary and the immense bur-
den which their annual interest charges
alone would entail upon this and flu
ture generations and the danger Of in
fation Of credits and rise Of prices
which large bond Issues involve, the
wisdom Of the administrators insist
ence upon such increased tax collec-
ton becomes at once apparent.
Eight billion dollars Is twice as much
as this country or any other nation
in the world has ever attempted to raise
by taxation In one year. II Is nearly
three times the total amount Of col
lection from taxes and bonds during
the four years Of the Civil War.
How shall we go about 1t TO get the
IS, 0O0,O0O0OO2 Congress and the coun-
try are In entire agreement with the
President In the declaration In this rev.
enue massage that the big increase
must come chiefly from incomes, ex-
cess OF war profits and the 'luxuries.
Wealth, therefore, must be taxed in
stead Of poverty, luxurles instead OF
We shall have. 10 retain
the list, including the luxuries and
semi-luxuries, subject to the excise taA
Of existing statutes and increase the
rates in most II not In all, Of them |
and shall have 10 add many articles 10 |
he excise tax list. After doing this, |
{ is evident that the larger portion OF |
he increase must be derived from in |
zones and excess Of war profits.
All conditions, from business must |
ome from profits. In exacting contrib 1
ltlons from business we must recog-
lie its fundamental incentive to eff
VI d HIUMl1t us AlluAl ullAuAtlUnr UlULE
roflts. We must not destroy either
Ne must keep in mind that business
s It relates TO the national revenues
las two important and necessary func-
ions TO perform; first, to furnish the
a large portion Of its need
d collection; second, to help the gov
rnment dispose Of its Liberty bonds
{ each new issue.
Without profits Il can perform Meth
r. and II incentive and ambition Of !
business be destroyed there will be no
lroflts. We must take care that the
loose that lays the golden egg be not
TILED or disabled. The egg Just now
s essential TO the government and the /
survival Of the goose is essential TO the /
,gg That is TO say, in any scheme Of /
arge tax levies, the cupidity Of bus
mess must be reckoned with and after |
payment Of all taxes, il must be left |
profits sufficient 10 preserve the inoen- |
live Of aggressive efforts to continue |
Us proflt-making IL must continue to |
make efforts and to make profits be- /
'ause the government must continue |
o have a part Of those profits, and in
II probability, in many cases, a large
art.
Wealth viii not be penalized or con-
seated, but It will understand, Of
curse, that the government must not
e paralyzed by lack Of funds The
lXpayer, however big be he, can be {
lre that the committee and Congress /
iii not adopt in the making Of a tax {
III any such theory as taking for the {