The Richmond palladium and sun-telegram., 1918-08-14
War Taxation Chief Problem
Now Before United States

I bill goes to the conference committee
of senators and representatives which
! finally reports back a compromise
draft on which both houses can agree.
Inasmuch as this particular bill
lengthens the long arm of the govern
ment tax collector so 1t can reach in
to almost every mans pocket, one
| who attempts to be informed Of what
sacrifices he will be called to make
that the world may become a decent
place to live in, will do we'll to survey
the needs which have brought before
the country this measure for taxing
the high and low.
The American people of course will
not only finance their own share OF
the war, but they will furnish in large
measure, the monetary backbone to
enable the Allies to continue This
new law is expected to make an equit-
able distribution of the burden to all
the people in just proportion to their
share or the nations wealth. Results
of the present laws have not been en-
tirely satisfactory.
Experience has pointed out weak
spots.
Increase in Tax Rate.
Estimates submitted to Congress
place the expenditures of the coming
year at about $50, 100000. 1t does not
necessarily follow, however, that the
actual expenditure will reach that fig
ure. The House Committee on appro-
priations is Of the opinion that $24,-
900, 900 will suffice According to
the original budget the expenditure for
war purposes alone will be $24,476,-
293,691.77.
The fourth issue of Liberty Bonds
would be authorized at $16 900, 900, 900,
which leaves $4,000, ,0O0,0 900 to be Sc
cured through other means. 1t Is with
the raising of this $4,000, 100000 that
the new revenue law will be concern
ed This problem confronting those
drafting the bill is just how to levy
equitably upon the various taxable
sources; what proportion of the amount
is to be taken through excess profits
taxes and income taxes and what by
luxury, consumption and other taxes.
At the present time opinion is divided
upon this subject. and while at first
it was believed that an excess profits
and income tax would furnish at least
$6.000,000.000 of the amount needed, it
has now been practically determined
that in view of the reduction of profits
, brought about through the increased
cost of labor and materials, and also
by government price fixing. it will be
impossible to raise more than $4,500,-
100000 through this manner.
Granted that these tentative figures
prove to be correct, there then comes
the question as to how the other
$1,000, 100000 is to be secured. 1t is
positive that there will be general in
crease In the tax rate but just how
this new rate will be applied must be
determined by thorough investigation.
The matter of exemption, the preven-
tion of duplication in taxation and the
ironing out of those techn;calities
through which some people have es-
capped the payment Of their just share
must also be settled before the means
of raising additional revenue IS defin-
itely decided upon
One thing seems positive. The law
makers say they are determined that
the nations business shall not be
hampered 1t also seems certain that
the people of America will not be COM
PEELED to bear the heavy burden of
taxation that has been placed upon the
English.