Newport daily independent., 1918-03-08

S5,JO0 IA per cent. z-S or l D. C.
 5000 ls per cent. IF p. c.
 10000 20 per cent. 31a D. c.
 15.000 9 per cent. D. c. Of we add the so called "occupa- tional' tax our total taxation on in- comes of s1O.oc0 is 6% per cent. and on incomes of $l5.ooo 9a per cent)
 In other words, our income taxation is more democratic than that of any other country in that the largest in- comes are taxed much more heavily much mere Iigh4lv than anywhere else and inccmes up to S2,C0o for married men not taxed al ali
 (3.) It is true, on the other hand, that on very large incomes-as distin- guished from the9largest incomes-our income tax is somewhat lower than the English tax, but the difference by which Oslr tax is lower than the Eng fish tax is incomparably more pro- nounced in the case of small and mod crate incomes than of large incomes. The Excess Profits" Tax Here and
 Abroad.
 Moreover, if we add to our income tax our so called excess profit tax" which is merely an additional income tax on earnings derived from buSi- ness, 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.
 (4.) It is likewise true hat the Eng fish war excess profit tax is 80 per cent. Qess various offsets and allow ances), whilst our so called excess profit tax ranges from 20 per cent. to 60 per cent.
 But it is entirely misleading to base a conclusion as to the relative heavi. ness of the American and British tax merely on comparison of the rateS,. because tie English tax is assessed American tax
 The American excess profit law (eoi calIed) taxes all profits derived froa, business over and above certain. moderate peRentage, regardless Of whether or not such profits are the result of war conditions. The Ameri- can tax is q general tax on income de- riveds from business in addition to the regular income tax. The Eng fish tax applies only to excess wal profits--that is, only to the sun by which profits in the war years exceed the profits in the three years preceding the war, which in England were years of great prosperity. In other words, the English tax is nomi- naily higher than ours, but 1t applies only to war profits. The normal prof it's of business-i e., the profits which business used to make in peace time are exempted in England. There, only the excess over peace profits is taxed. Our tax, on the contrary, applies to all profits over and above very mOder ate rate on the money invested Tn business
 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. It would seem that it would be both fairer and wiser and more in accord with public sentiment if the tax on business in general were decreased and, NOn the other hand, all increased tax were imposed on spe- cific war profits.
 (5.) Our federal inheritance tax is far higher than it is in England or anywhere else. The maximum rate here on direct descendants is 27h per cent. as against 30 per cent. in Eng land. In addition to that, we have state inheritance taxes which do not exist in England.
 (6.) Of her total actual war expen- ditures (exclusiye 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 fal less), while America is about to raise by taxation approximately 25 per cent of her total war requirements (exclu- sive of loans to the allied nations and of the amount to be invested in mer- cantile ships. which, being a produc- tive investment cannot properly be classed among war expenditures)
 e- We men of business are ready 9. U, willing to be taxed in this emergency 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 ,iO