The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1918-03-21

5000 IS per cent. III 3. &.
10000 20 per cent. s1sp pc.
$4,000 Is per cent. .. Q.
Uf we add the SO called "occupn-
tional" tax our total taxation on IN
comes OF $1,000 Is eA per cent. and on
incomes Of SIS 900 OK per cent?
N ether words, our income taxation
i more democratic than that Of any
other country Ia 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.
t3.) 1t is true, on the other hand
That on very large incomes as tiistin-3
guished from the largest incomes -ouri
income tax is somewhat lower than the
English tax, but the difference by which
our tax is lower than the English tax
Is incomparnbly more pronounced in
the case OF small and moderate incomes
| than of large incomes.
The Excess Profits" TAX Here and
Abroad.
Moreover. If we add to our income
lax our so called excess profit tax"
Which is merely ;,n additional income
lax on earnings derived from business,
We shall find that the total tax 10 which
rich men are subject is in the great
minority of cases heavier here than In
England or anywhere else
(4.) 1t is likewise true that the Eng
fish war excess profit .ax is so per cent.
| (lcss various Offsets and allowanccs),
whilst our SO called excess profit tax
ranges from 20 per cent. to GO per
cent
| But IL is entirely misleading to base
ii conclusion us TO the relative heavi-
| ness Of The American and British tax
,Iri'ely OH IL comparison of the rates.
! because the English lax IS assessed On
/ ! wholly different basis from the Amer
! cinia
! The American excess profit law ESQ
;a!Ied) taxes all profits derived from
moderate percentages, regardless OF
whether or not s,lcl, profits are the
.rs;:lt of wal, conditions. The Alneli-
IN TAX Is Il general tax on income de-
.iyed from business IN addition 10
he regular income lax. The Eng.
Oh tax applies o.ly to excess war
/ ,rcfits that is. only TO the sum by
i which l,rtiiis in the war wears exceed
&c profits; II, the three wears, proceed
~ the WAR, which III England were
ears Of great prosperity In o.Iie..
,or.ls. The l.ngiisn ,ay is noiai,nl!y
| 'iisiier than oars. hut il ;iaplics only to
var profits. The morn u profits of bust.
ness H. q. re profits which l,itSness
81! to make In peace tiiilc--;ire cx-
| la,,icd in En2land. There, only the
excess over peace profits is taxed. Our
tax, Oh the contrary, applies to all
profits over and above n very moderate
ate on the money invested in bust
ness.
l We Tax Norma! ProGt5, They Tax oaIy
War Profits.
In short. our lawmakers have de-
creed that normal business profits are
/ taxed here much more. heavily than in
England. while direct w;,r profits are
| u. ID 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
il the tax OH business in general were
decreased and, on the other hand, an
increased tax were imposed OH specific
war profits.
90 Our federal Inheritance tax is
far higher than it 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.
go OF her total actual war expen-
ditures Exclusive of loans to her al
1 lies and interest on war loans) Enc.
land has raised less than IS per cent.
by taxation (France and Germany far
less), while America is about to raise
by taxation approximately % per cent.
of her total war requirements (eNclu-
siye of loans to the allied nations and
of the amount to be invested in mer-
camille ships, which, being produc-
tive investment, cannot properly be
| classed among war expenditures.
We men of business are ready and
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