Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-09-09


cost.
'The excess profits tax in peace time
must not be confounded with the wal
profits tax in time of actual warfare
A war profits tax, however heavy, is
wholly sound, morally, socially, and
economically, and it's effect on prices
is> largely rnitigated through circum-
stances and agencies which are oper-
ative when country Is at war.
1.-THE objection to a very heavy ey-
cess profits tax in peace time rests not
so much on equitable grounds as on
the ground that on the one hand it does
not, and cannot, accomplish the social
purpose aimed at, and on the other
hand it tends to hurt trace, discourage
enterprises, and burden the public.
Our excess profits tax certainly has
not stopped, but rather has intensified
what is commonly termed "profiteer-
| ing"
IF ever the American people should
reach the conclusion, almost incalcul-
ably far-reaching in the ramifications
Of its effects, that profits are to be
limited to definite maximum, they
Will have to accomplish that purpose
by direct statutory enactment. 1t can
aot be accomplished by excess profits
taxes
Incentive to Extravaganee.
l,a fnx II
Kahn in his memorandum observes
hat one of the most valuable by-pro-
ducts of wise taxation is the promotion
Of thrift, but says the present tax, by
reason of the kind and manner of its
;radaticn is breeder of extravaganza
md thus of higher prices, there being
general sentiment against saving so
long as ''the government takes it away
n chunks" Moreover, the investor, to
'ecoup his income tax, demands higher
eturn from securities, thus enhancing
he cost of capital andt once more rails
ing prices, or else buys tax exempt
municipal, state, or government bonds.
.hus reducing the quantity of funds
AVAILABLE for private enterprise. A COL
lateral turning to get rich quick"
schemes is noted.
Space is devoted in the memorandum
% the effect of the tendency to buy
lon-taIable securities, or at least
hose yielding higher rates, upon our
export trade, the banker arguing that
.hus we do not buy as we should, the
securities Of foreign nations to which
We wish to sell goods, while this atti-
/ude initiates further against our ca
oacity to come to equal England as an
International money center.
Furthermore" he continued. "a
Gerry unfortunate Impression is created
broad by the fact that at time when
We alcnc are capable Of supplying the
!ations with urgently needed funds, we
all to do so adequately, and when we
% accord loans to foreign countries,
'xact very onerous conditions. The
ault is attributed to the American
character, when, as matter of fact,
he cause-apait from natural condi-
ions-is primarily due to our taxation
measures.
'The housing famine and the result
ng hardships and high rentals are due,
n considerable part, to the fact that
he private investor, generally speak
ag, has withdrawn from the field of
'eal estate mortgages, because they do
rot yield him a sufficiently attractive
eturn after taking into account the
ncome tax.
My criticism is not of the magni-
ude, but of the method of our tax
measures. My point is that we have
)mmittcd to impose certain easily
Dorne, easily collected, greatly produc-
i've and well tested taxes, such as-
quote only one minor, but character
site instance-a stamp tax on checks,
md have grossly maladjudged others,
With the result that our revenue legis-
alton has largely contributed to throw
,ur economic equilibrium out of gear
TO the detriment of everybody, and
NiSuiRiiy w NhS oiSul SOol anu
!amaGe Of the masses of the people.
realize, Of course, that even if strict
governmental economy is practiced, we
lrc faced with the necessity of raising
vast sum of money annually by tax
ltion. But l am convinced that the
needed amount can and should be rails
d with far less compleXity, vexation
md economic dislocation and disad-
:antage than have resulted and were
bound TO result from the revenue
measures now in force"
dcralaBureau Of Salvage Urged.
Another suggestion in the memoran-
ium is for the creation of a Federal
Bureau of Salvage, Mr.. Kahn stating
hat he learned in England in 1918
hat similar body there had saved
he nation in three years S500,000,000.
The thrift lessons of the war, the fl
lancier adds, are being unlearned
'apidly and the teaching of thrift
therefore, is suggested as n further
junction of the proposed bureau. A
general staff on economies during the
'eadjustment period is the final sug-
| ;estion, Mr.. Kahn writing:
1T would seem TO me that the ap-