Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1918-03-11
Income tax


1900 229p, cent, 9'4 p, c.
IF we add the 81 called "occupa-
tional" tax our total taxation on in
comes of $4,000 is 81, per cent. and
on incomes of Sl5003 9& per cent?
In other words, our income taxation
Is more democratic than that Of any
other country in THAI 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 5000 for married
men not taxed at all
80 Ii is true, on the other hand.
that on very large incomes -.as diStin-
guished from the largest inconcs-our
income tax is somewhat lower lhan
the English tax, bur the difference by
which our tax is lower than tEc Eng
fish tax Is incomraahly more pro-
nounced in the case of SmuH and uod-
crate incomes than OF large inao,Fys
The Excess Profit3" Tax t4c7e AMI
Abroad
Moreover, If we add - our nscume
tax our so called "eNcv,s pr.a. taN."
which is merely an additional lu nmc
tax on earnings derived frusl nus.-
ness, we shall find that The tutal lax
to which rich men are subject is In
the great majority of cases heavier
here than in England or anywhere
else
al 1t is likewise true hat the Eng
lish war excess profit tax is so per
cent Qess various offsets and allow
ances), whilst our SO called excess
profit tax ranges from 20 per ceat. to
60 per cent.
But it is entirely misleading to base
conclusion as To The relative heavi-
ness of the American and British lx
merely on a comparison of the rates,
because the English tax is assessed
on n wholly different busis from the
American tax.
The American excess profit law tso
caIIed) taxes all profits derived from
business over and above u certain
moderate percentage. regardless OF
whether or not such profits are the
result of war conditions. The Ameri-
can tax is general tax on income de-
rived from business in addition to
| the regular Income tax. The Eng
| Iish tax applies only 20 excess war
, profits is, only to lhc svm
| by which profits In the war Ncs ;
exceed the profits in the three yeas
preceding the war, which i'm En- iuGi
were years of great prosperity. ia
| other words, the English tax is ncp;.
nally higher than osrs, but II applies
only to war profits. The normal PROF
! its of business. e.. the profits whiga
business used to make in peace time
are exempted In England. There, orly
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 In
business.
We Tax Normal Profits, They lax 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 taxeG less heavily.
You will agree with me IN question
ing both the logic and the justice of
that method. Ii would seem that 1t
would be both fairer and 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-
cific war profits.
90 Our federal Inheritance tax il
! far higher than IL is in England or
anywhere else The maximum rate
here on direct descendants is 27Ih per
cent. as against 20 per cent In Eng
land In addition TO that, we have
state Inheritance taxes which do not
exist I'm England.
49, OF her total actual war expen-
dltures 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 % per cent.
of her total war requirements (exclu-
sive 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
cIassed among war expenditures)
We men of business are ready a;id
willing to be taxed I'm 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 do
not say that it may not become neces-
, sary to impose still further taxes; we
are not whimpering and squealing and
agitating, but--we DO want the people
to know what are the present facts,
and we ask them not TO give heed TO
the demagogue who you'd make them
believe that we are escaping our share
Of the common burden.