The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-03-23
Making the Rich Idle.
Evils of the Present Tax System and
the Remedy.

To THE New YoRK HERALD: As
have said frosn the start. the surtaxes
in the Federal income and inheritance
taxation are abnormal and are a tax on
principal and not income We are CIV
ing to the rich their living just as they
have always had II and taking from
them the surplus that went into pro-
ductive investment. This spells dry rot.
and, IL continued for long. stagnation.
The undoubted effect VIII be that the
big rich will transfer their holdings to
exempt securities from Which there VIII
be no revenue to the Government.
Whether they do SO or not we are fore
ling them to become idle rich. and taxi
Ing away not only their capital from
investment but the incentive to them
and to all, II only by imltation-to save
and get.
The Astor holdings and the family
policy made theirs the only estate likely
to, be perpetuated in gross. That does
not seem probable to-day In this
State, where there is no entail beyo.
two lives In being" there can be no
progressive accumulation to the public
detriment, and foolish heir may dis
sipate his inheritance TO the detriment
of the family as well as the public
good, or the ordinary division, Instead
OF concentration. may take place.
The pendulum has swung too far In
reaction. A gentleman who believes
that million Is as much as man
should have exclaimed -ecently while
discussing the subject: Labor alone
produced wealth 20 said: True.
And capital Is saved labor that can be
used in mass. when and Mt any point
desired, and starts current labor IN
profitable courses. IL also -carries out
the large und ertakings that spell bene-
nj 70 all in lessened cost or increment"
Not SO ridiculous as the radicals as
sertion that II was "a rich mans war,
but as inexact. is the other assertion
that, contrasted with the civil war, I'VE
were making the rich pay for II
Except what they spend In living. and
that has a limit, men OF wealth especial
Iy OF great wealth, cannot do other
wise with their money than make It,
useful. on the idea that the man on
whom, the tax Is levied necessarily pays
Il the so-called high cost OF living for
the last few years should flash light.
In the country we see all In minia-
ture. In the summer places here for
the last few years they have kept one
man to do, so far az he ,ou1d or would.
what three did. Tho other two went
Off and perhaps got higher wages for
some OF the time
A parcel OF girls here we're discussing
quitting and going to munitions fac
tories and getting 81 q day. The next
day I got report OF one at Albany
that two girls there made s32 = week.
Most OF them didn't earn that II Is the
rumor of the riches of your neighbor
next door that Is the most upsetting.
Any taxation that Is fair and equal Is
good. 1t might be all on realty 1t
might be on income, and 1t can be on
sales.
That way we would reach the bulk
Of the wealth. as suggested. the little
fellows. and make them pay as well as
the rich. and educate them in citizen
ship. through thus sharing It's burdens
Ms we'll as It's advanta ges IL the tax
were confined TO necessities they would
he paying more nearly man for man