The Connecticut labor news., 1921-06-17

w aSh1ngtOn, June 1O.-F our D1llS that amend the revenue law so the burden of taxation will be lifted from labor and the farmer and placed upon the owners of used monopolies and the interiors of huge fortunes were introduced in Congress last week by Representative Oscar E. Keller of St. Paul, who was sent to Washington as an independent with the backing of union labor. The bills were drawn by Jackson H. RalstOn, attorney for the American Federation of Labor, and the land values tax bill which the pro gram is built around has been en- dorsed by trades and labor assemblies all over the United States.
 The first bill repeals all existing transportation and sales taxes except those on tobacco, distilled spirits, oleomargarine, habit forming drugs and products of child labor. The bill also repeals the excess profit tax and the 10 per cent on the income of cor pOrations.
 The second bill amends the income tax so as to distinguish between The tax on ''uncarned incomes to- gether with the super-taxes is re- tained, but the tax on "earncd' in comes is cut in two.
 "Earned' income is defined as in come derived from personal services or from business personally conduct ed. "Unearned" income is defined as income derived from rents of land or other property, interest on mortgages, notes or bonds, dividends on shares of stock whether in the form of money or stock dividends, and from any source other than the labor, skill or business or industry personally conducted of the person receiving the income.
 Inheritance Tax Increased
 The third bill amends the inherit ance tax. Beginning with estates of $2o,ooo to $35,ooo there is tax of one per cent. $35, ,ooo to $5o,ooo two cent. $15o,ooo to $500 six per cent The taxes then graduate on an in Creasing scale until the point of $IOO,- 900 900 is reached after which the tax IS 90 per cent.
 The foutrh bill provides for a tax of one per cent on land values in eX- cess of $Io,Ooo after eXempting build ings and improvements, and in the case of farms, cost of clearing, and draining and maintenance of fertility This bill aims to tax monopoly hold CTS of natural resources, valuable "sites" in cities and the holding of land out of use. The exemptions are so applied to farms as to exempt from taxation according to MT. Keller's es- timate approximately 08 per cent. of all actual farmers. Owners of city homes also would be exempt from taxation under the proposed law.
 Some may wonder why l would re- peal the excess profits and corporation income tax" Congressman Keller said, "especially when 1 am known to be sympathizer with organized la bor and to have a 100 per cent. record on labor legislation, but both these taxes are shifted to the consumer. Investigation by the Department of Justice showed that these two taxes added 22 per cent. to the cost of the average article.
 "In other words, manufacturers and merchants figure up the amount of their income and excess profit taxes and add 1t to the cost of the goods after allowing themselves the benefit of the doubt and taking a big profit for collection. This means that labor, which consumes more than 40 per cent. of the nations goods-pays the taxes which are levied on great cor porations. Every time you ride on a railroad, buy cigar or a soda, go to a movie, you pay part of this tax and your wife pays more every time she buys bread, butter, eggs, meat, cheese, clothing or any one of the hundred articles that family needs
 Takes Taxes Off Consumer
 "The taxes which my bills repeal took a toll of $I,73o, ,ooo,o ,ooo off in dustry last year and this was increased from three to five times before 1t was paid by the consumer. This meant high prices and high prices caused the buyers strike The result has been shutdown factories, empty stores and widespread unemployment. 1 want to levy taxes where they cannot be shift ed to the consumer and where they will not penalize production and cause industrial idleness.
 "The whole tendency of my tax program is to take the burden of those who produce and place it upon industrial drOneS who live off the la bor of others. The tax on estates will correct past injustices and take g larger share of swollen fortunes. Ii will break up the dangerous concen- tration of wealth that is endangering the future of this nation.
 "The differentiation between earned and unearned income will relieve the wage WOrkeT ana salary man Ot nal his present tax and make the cOupor clipper and mortgage loan shark pay twice as much
 "The tax on land values, after i'm , provements are deducted, and a $Io \ 900 exemption allowed, will not fal ' upon the small home owner or pro ducing farmer, but will hit monopoli zation of land, lumber, coal and al natural resources. The owner of va cant city lots will pay the same ta> as the man whose property is i'm proved. This will compel him tc build on his property or to sell it tc some one who will. This will soor remedy the housing situation and { building boom will help labor by pro viding employment and reducing rents Idle farm land will be made productive and owners of undevelopeC coal, lumber, and oil lands will be forced to develop their property which will lower prices through com petition and also provide employment There is about fifty billion dollar: worth of such property in the United States today which does not pay one penny of federal taxation and my bills will correct this rank injustiCe.'
 Same as Wage Increase.
 Naturally, any tax reform that vii break up monopoly and Tighten the tax burden upon the general public will increase real wages by increasing +he purchasing power of labor" Con.