The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-09-02
IS a. y
Popular Economist on
Taxation and Thrift

m " ~ II. MAIN . ldCeSC paper
W on complex questions applied
to business and the economy of every
day life, is of absorbing interest.
Like all discussions emanating from
Mr.. Kahn's pen, it is sane and I'M
usually convincing as we'll as attrac-
tive from an academic point of view.
1t is entitled Memorandum as to
Possible Measures for Alternating the
High Cost of Living" Mr.. Kahn does
not "attempt to deal with the general
subject of high prices and the causes
thereof, natural or artificial, but
confines himself to pointing out a
few of the less patent and direct con-
tributory factors, and to suggesting
what he hopes might be remedial
measures in respect of those particu-
lar factors.
First he suggests the appointment
by the government of a nonpolitical
body of experts to study the effects
of the various kinds of taxation which
have been in force during and since
the termination of the war, and to
make recommendations based upon
such study. "It is a remarkable cir
cumstance," he observes, that in the
public discussion Of the factors which
are responsible for She prevalence of
excessively high prices, the subject
of taxation has hardly been mentioned.
Yet he believes it demonstrable fact
that the unscientific system of taxa
ton adopted in this country since
1917 has played considerable part
in boosting prices"
Mr.. Kahn says:
Nothing is further from my thought
than to object to the obvious purpose
underlying our war taxation, namely,
n to impose the greatest burden upon
III those best able to bear it. l do not
III wish to dispute for a moment that
HI taxation must be laid in accordance
Il with the dictates of social justice.
81 advocate scheme of taxation
NJ lich would spare wealth would be
18th wrong and fatuous. Yet I can
Arf
IS very extreme of the burden laid upon
business and income has partially
II defeated the purpose which the franz
j err of our taxation legislat ton appar-
I had in view, and at the same
4 has given rise to certain I'M
fo., been and troublous Developments
as Invariably happens in the case of
extreme measures, especially where
econopicsI are involved Now that
the emergency of the war is over. 1
believe that the entire matter should
be subjected tic unprejudiced and COM
pcteut critical review
! n There can be no question that, ow-
ing to the increased cost of living or
the decTsased purchasing power of
Lie uOiio4r TIC HCl, Tic VASE
worker, the man and woman living on
salaries, are entitled to proportion
ate increase in income. But the en-
HANGED cost of living and the disnin-
ished purchasing power OF the dollar
affect the owner of industrally in
vested capital no less than they do
other callings. And In addition there
to he is subject to heavy excess
profits tax and, if his income is large,
to an income tax of unparalleled Sc
verify.
However we may leave out Of ac-
count. for the purposes of my argu-
ment. the relatively small number OF
those in possession of large incomes
When speak Of the owners OF indus
trially invested capital. ! mean pri-
mapily the storekeeper, the average
eAhant and the millions Of mcn and
- WOMEN who derive all or part of their
income from Investment in securities
q corporations by the same token as }