New-York tribune., 1920-08-08
Suggests Small Tax ON ~
Every Going Concern

The incomes from war-made fortunes,
those of n-producers and those de-
rived from industries that exist by un-
their present load, but taxes on the
earnings of the wage-earner, of the sal
aried and professional mar. of the
agricultural producer and of the small
tradesman should be sharply modified
l believe that a better form of taxa
tion than the so-called excess profits
tax may be found, and l suggest
small tax, probably 1 to IL per cent,
on the total business of every going
concern. 1t is to be understood that
the term business" as used does not
include income received by wage-earn-
ers, salaried men, agriculturists and
the small business man who should be
exempt from this tax
The protiteer and some of the highly
capitalized units have used the excess
profits tax as favorite excuse for
loading on the consumer, by means of
highly inflated selling prices, many
times the amount actually paid the
government.
A necessary condition to the national
contentment and sound business is q
just proportion between fair profits to
business and fair prices to the con-
sumer. 1t is unquestioned that the
enormous expansion Of public and pri-
vate credit made necessary as a part
of war financing, the diversion of the
products of many industries from their
usual channels, as we'll as the disturb
ance to general business caused by the
withdrawal of millions Of men from
producing fields, all contributed to the
rise in prices. Reversion of these
RI o.
dltion will tend toward recession in
the enormously inflated present prices
Of many commodities and property
values, and there are now evidences
that sane adjustment is not far dis
tant. Deep patriotic sentiment en-
thralled our people during the war and
slight attention was given to the enor-
nous economic changes that were then
IN progress, and when observed these
changes were generally accepted as one
Of the trials necessary to be endured
and they were submerged in the
thought and purpose for victory.
While millions of free men, regard
less Of wealth or condition, were CIV
ing Of their blood and substance, many
corporations and men seized the very
hour that civilization lay PROSTATE to
secure for themselves fortunes wrung
from the public and from the govern
ment by the levying of prices that in
many cases we're crime. Under pres
ent taxation laws much capital Is draw
ing out of industry and finding invest
ment in non-taxable securities. This
will cease If the changes suggested are
made.
Old and New Thinking
In the analysis of government, as
the events of to-day enable US to
penetrate the subject, we see the diff
ference between the old and the pro-
gressive kinds of thinking. The be-
lief Of the reactionaries is that gov
ernment should not function more
widely than it did in the past, but
they seem to forget that the funda-
mental Of our plan is equal rights for
all and special privileges for none.
Modern life has developed new prob
lens
Civilization continues to build along
the same basic lines, and altruistic as
we may all be disposed to be, the fact
remains that except for the exchange
OF products between individuals, com
mercial units and nations, our develon-
ment would be slow. All of this
growth goes on under the protection
of and with the encouragement Of gov
ernment.
The least, therefore, that might be
rendered unto government for this con-
tnuous service is policy of fair
dealing. Too often the genius of man
prompts HIM to play for governmental
advantage, and the success which has
been achieved in this particular has