Tensas gazette. [volume] (St. Joseph, La.) 1886-current, 1918-04-05

comes OK SlO,OOO ID oH per cent. Bpd Ca
incomes Of $4,000 OK per esnt)
In other words, our Income taxatica
10 more democratic than that Of any
other country In that the largest in
comes arc taxed much more heavily
and the small and moderate Incomes
much more lightly than anywhere else
and incomes up to $1,000 for married
mon not taxed at all.
(3) 1t is true, on the other hand,
that on very large incomes-as distin-
guished from the largest incomes-OuY
income tax is somewhat lower than the
English tax, but the difference by which
our tax Is lower than the English tax
Is incOmparably more pronounced In
the case Of small and moderate incomes
than Of large incomes.
The "Exeess Profits" Tax Here and
Abroad.
Moreover, II we add to our income
tax our 30 called excess profit tax"
which IL merely an additional income
tax on earnings derived from business,
we shall find that the total tax to which
rich men are subject u a the great ma
jority Of cases heavisf here than in
England or anywhere else.
(4) 1t is likewise true that the Eng
lish war excess profit tax IL so per cent.
(less various offsets and allowances),
whilst our 20 called excess profit tax
ranges from 20 per cent b 60 per
cent. ~
But It IL entirely misleading to base
a conclusion az to the relative heavi.
ness Of the American and British tar
merely On q comparison of ths ratsa,
because the English tar b asoosssd a
a wholly different basis nom. ne Amsr.
lean tag kr !
business over and above a certain
moderate percentage, regardless Of
whether or not such profits are the
result Of war conditions. The Amers-
can tax Is a general tax on income de-
rived from business in addition to
the regular income tax. The Eng.
lish tax applies only to excess war
profits-that 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 IL nominally higher
than ours, but 1t applies only to war
profits. The normal profits Of business
Il. e., the profits which business used
to make in peace time-are exempted
in England. There, only the excess over
peace profits Its taxed. Our tax, on
the contrary, applies to all profits over
and above a very moderate rate on tho
money invested In business.
We Tax Normal Profits, They Tax Only
War Profits.
In short our lawmakers have d.
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. on the other hand, an
increased tax were imposed on spe-
ciic war profits.
(5) Our federal Inheritance tax 10
far higher than 1t Is in England or any
where else. The ma admum rate here
on direct descendants Is 27h per cent.
as against 20 per cent. in England. In
addition to that we have state in
heritance 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 loans) Eng.
land has raised less than IS per cent
by taxation (France and Germany far
less), while America 10 about to raise
by taxation approximately 20 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 a 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
being taxed in America more heavily
than anywhere else in the world. We
are not complaining about this; we do
not say that 1t 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 would make them
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