The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1919-11-30

NC NI'It country IL NlNtl llih
both litcmlly and fEuratiyely, over
the coal strike situation.
1t is nretty gcueraly conceded
that there is some merit In the con
tentluns Of tho miners. Just how
mhch we VIII not discuss here.
Whether the opera ors can afford t.
meet the demands Ol the miners, OF
not. Is u question in which the pub
Ne Is much interested.
Mr. McAdpu lo authority for the
statement ma. income TAX returns
indicate tGal the operators have been
ana are, making excessive profits;
ranging in some cases up to l,OOO
per cent.
No one Will question Mr. Nc
Adoo's statement that the income
tax Iciurus reflect this condition,
but, the thougntul peJsun might m
quire whethc, these income lax re
turns SHOW actual profits. or merely
rsuWu'ed or fictitious profits. ana
whether or no, these operators are
being ta.riy ana clulHby taxed.
Inc puuDc. beng the culet sIf-
fcrcr, ik OF .ho upulun that some
tnlng should uy don" by the gov
erumctu tn rrmcd, Tie Present con
dltiUu OF Afiairs.
Many new untr.cd remedies are
being suggested. yet We wonder II
an old, tried, proven remedy might
not be effectively applied by the
government why sauu.d the gov
ernmcnt aIop' some new uulricl
treatment OF doubtful proprlciy
when the simple umc honurcd eN-
podient OF rgutlng a wrong might
suffice.
Sccrctnr, Mc\doo Quoted.
Let W. FIRST discuss whether there
In wrong, which the government
could. with perfect prOpr.ety, right
Are the coal operators being un-
fairly taxed Fortunately Mr. Nc
Ado0 has answered this question FOR
us. We quote from mis- statement !,
the ways and means committee OF
August II, 1915.
The distinction nrtween war
profits lax and the excess profits
tax Is NOT II matter OF form, but OF
substance. Hy "a War-prof.ts taN. we
mean a TAX upon profits IN excess
OF those realized before the war.
BY an excess profits tax, we mean
tax upon profits in excess Of a
given return upon capital, The
theory OF "A wat-prof,ts taN IL TO TAX
profits due to the war. The theory
OF an excess profits tax. is to taN
profits over and above n given re
turn on capital 4 war profits tax
fjnds It's sanction IN the conviction
Of all patriotic men, Of whatever
economic or Political school, that no
one SHOULD profit largely by the
war. The excess profits tax must
rest upon the wholly indefensible
notion that 1t Is "A function OF taxa
tion to bring proflis down TO one
level with relation 10 the amounJ
Of capital invested and to deprive
industry, foresight, and sagacity OF
their fruits The excess profits tax
eNemp's capital and burdens brains,
ahility and energy. The excess
profits tax falls less heavy On big
business than on small business, be-
cause Dig business IL generally over
capitalized and small business is
often under api,alizcd.
Admits Tax L. Unjust
The war profits lax would tax all
war profits at one high rate. the
excess profits tax does, and Tor
safety must, tax all excess profits AZ
lower and graduated rates ANY
graduated tax upon corporations is
indefensib,c IN theory. for corpora
tiuns are only agEregatiOns OF lndi-
viduals and by such "A tax the mum
erous small stockholders OF "a great
corporation may bc taxed at Il higher
rate than the very wealthy large
stockholders OF "A relatively smaller
corporation The object OF grad
uated tax should be 10 make taxes