The Marietta journal and courier., 1918-03-29

10000 30 per cent. sA .. c..
$4,000 25 per cent. p. c..
(If we add the so called "occupa-t
tional' tax our total taxation on in
comes of $4,000 is 6% per cent and
on incomes of $4,000 9% 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
and the small and moderate incomes
much more lightly than anywhere else
and incomes up to $4,000 for married
men not taxed at all.
(3.) 1t Is true, on the other hand,
that on very large incOmes-as distin-I
guished from the largest incomes--ourl
income tax is somewhat lower than
the English tax, but the difference byt
which our tax is lower than the Eng1
lish tax is incomparably more pro-l
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 incomet
tax our so called excess profit tax, u
which is merely an additional incomeI
tax on earnings derived from BUSH
ness, we shall find that the total tax
to which rich men are subject Is I'M
the great majority of cases heavierf
here than in England or anywheret
else.
(4) 1t Is likewise true hat the Eng
lish war excess profit tax is so peri
cent. Qess various offsets and allow
ances), whilst our 80 called excessl
profit tax ranges from 20 per cent. tOl
60 per cent
But 1t is entirely misleading to basel
conclusion as to the relative heavi-I
ness of the American and British tax
merely on q comparison Of the rates.
because the English tax Is assessed
on wholly different basis from the
| American tax.
The American excess profit law (sol
caIled) taxes all profits derived from
business over and above certaing
moderate percentage, regardless of
whether or not such profits are thel
result of war conditions. The Ameri-
| can tax. is general fax on income de-
rived from business in addition to
! the regular income tax. The Eng
! lish tax applies only to excess war
PROTESTANT Is, only to the SUM
| 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-.
nally higher than ours but it applies
only to war profits. The normal prof.
| It's Of business. e., the profits whichl
business used to make In peace time
are exempted in England. There, only
the excess over peace profits 10 taxed.
Our tax, on the contrary, applies to all
profits over and above a very moder-i
ate rate on the money invested I'M
| business.
We Tax Normal Profits, They Tax only
War Profits.
In short, our lawmakers have de-
| creed that normal business profits areI
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 it
would be both fairer ard wiser and
more in accord with public sentiment
if the tax on business in general were
decreased and, on the other hand, an
| increased tax were imposed on spe-
cifc 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 271z per
| cent. as against 20 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 Exclusive Of loans to her al
! lies and interest on war l0ans) Eng
! lard has raised less than IS per cent
by taxation Orance and Germany far
less), while America is about to raise
by taxation approximately 23 per cent.
Of her total war requirements (exclu-.
| sive Of loans to the allied nations and
Of the amount TO be invested in mer-
cagtile 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 i'm this emergency
70 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,
! cnpital engaged in business is how
/ being taxed in America more heavily
! than anywhere else in the world. We
! are not complaining about this We do
not say that it may not become neces-
sary TO impose still further taxes; we
! are not whimpering and squealing and
( hut do want tho nn0DleA