The Birmingham age-herald., 1919-07-20
SOME ILLUSTRATIONS


 Just as an illustration of what this means to you, some figures are inter- esting. These figures may not apply to you, but worked out in your case as ! compared to your competitor in the same line of business who has more money but does not make any more | because you are more industrious and ] pay more attention to business, the H. lustration applies to you, whatever | your figures may be.
 A business with $50, 900 invested capi- | tai which makes s20,000 in a taxable l year must pay to the state for excess profits tax and income tax, if incorpo- rated $1,41750, as this bill is drawn, and more than that if not incorporat- ed This in addition to $5,s22 which 1t must pay to the Federal government. A business with $100,00O invested capital which makes s20.000 in a tax able year must pay to the state for cx- cess profits tax and income tax, If in- corporated, $97S,90, as this bill is drawn. and more than this if not incorporated. This in addition to s3,520 to be paid to the Federal government
 A business with s200,000 invested capital which makes $20,000 in tax able year must pay to the state for excess profits tax and income. If in- corporated, $512.10, as this bill is drawn and more than that if not incorporated This in addition to $9S0 which 1t must pay to the Federal government. That this method of taxation penal izes the small business or the small in- dustry as compared with the larger and wealthier, and perhaps lazier, com petitor is too well illustrated by the above figures to require any further demonstration. The writer in his ex- periences with various computations ot Federal income and excess profits taxes has seen this idea so often demonstrat. ed that it seems only just to the people of Alabama that they should know ot this before the adoption of this bill, and decide for themselves whether 1t Is satisfactory to them
 Remember that the Federal govern ment has just emerged from great war; that it's expenses in the conduc, of this war have been tremendous; that it's expense during the reconstruction period that is now with us will continue to be tremendous and that most of us cheerfully pay large contribution to our Federal government to meet these expenses. Has the state of Alabama any emergency to meet which justifies this form of taxation. of which Senator Bankhead in his speech to the senate af the United States on August Is, 1917, said:
 "Whether or not the constitu- tion so requires, simple justice does require that all taxation and exemption from taxation be equal and uniform. and the greater the exigency and con- sequent burden, the more firmly we should hold to the rule"
 The whole inequality that results in this excess profits tax legislation arises from the fixing of a specified exemp- tion from excess profits tax of an amount equal to per cent of the amount invested in the business, plus s3, GOO. The opponents of this bill in the state legislature will argue to you that in cases of businesses earning the same percentage on their investments before deducting the tax, the net rate of taxation under this excess profits tax law is not substantially different regardless of the amount of the invest ment. but it is impossible to fix an arbitrary measure of exemption from the tax as is done in this bill, and make any allowance for the ability and industry of John Smith with . small investment az compared with the abilit~