The labor world. [volume] (Duluth, Minn.) 1896-current, 1921-06-18
TAX BILL AIMS
TO ASSESS IDLE
WEALTH. LANDS
St. Paul Congressman Would
Let Non-Producers Help Pay
Cost Of Government

WASHINGTON, D. c., June It,
-Four measures, drawn by Jackson H.
Ralston, attorney for the American
Federation of Labor, have been intro
duced into the house of representa-
tives by Congressman Oscar e. Keller
OF st. Paul. These bills are in the
form of amendments which would do
away with the inequality of existing
revenue laws, shift the burden Of tax
alton from producers to non-produc-
ers, collect a heavy tax from inherited
estates, and prevent the monopoliza-
ton Of natural resources.
One measure would repeal the ex-
cess profits and income taxes and all
existing transportation. sales and
amusement taxes except those on al.
coholic. liquors, habit forming drugs.
oleomargarine and the products of
child labor.
The second bill amends the income
tax law so as to distinguish between
earned" and "unearned" income. The
tax on "unearned" income together
with the super-taxes is retained, but
the tax on learned" incomes is cut
in two. "Earned' income is defined
as income derived from personal SER
vices or from business personally con-
Quoted. "Unearned" income is de-
fined as income derived from rents of
land or other property, interest on
mortgages, notes or bonds, dividends
on share of stock whether in the form
of money or stock dividends, and from
any source other than labor, skill or
business or industry personally con-
Quoted Of the person receiving the in
come.
Inheritance Rates Increased.
The third bill amends the inheri-
tance tax. Beginning with estates of
$4,000 to $4,000 there is a tax of
one per cent; $4,000 to $4,000, two
per cent; $4,000 to $3.50, 900, four per
cent; $15O,0O0 to $25O,O0O, six per
cent. The taxes then graduate on an
increasing scale until the point of
$1O0,O00,000 is reached after which
the scale is 80 per cent.
"This tax program" Congressman
Keller declared, will lift $1,730,O0O,-
900 annually off productive business
and relieve the consuming public of
five times that amount in the form of
reduced prices. Some persons may
think it strange that I propose to re-
peal the excess profits and corpora
ton income tax, but both these taxes
are shifted to the consumer. Inves-
legations by the department Of justice
proved that these taxes added % per
cent to the final selling cost of the
average commodity. My bills will re-
lieve the consumer of these taxes and
place them on unearned income, in
heritances and land values, where
they cannot be shifted.
Halt Production Penalty.
THE whole purpose Of these bills
is to take the shackles off industry
and to cease penalizing production.
The inheritance tax, the differential
income tax and the land values tax
were all drafted with this principle in
view. Under our present absurd tax
laws individuals and corporations
which display. enterprise are fined in
the shape of increased taxes; while
the owners of tax exempt securities,
vacant city lots, idle farm lands or
unused natural resources are allowed
to- get rich off unearned increment or
the increase in speculative value of
their holdings without paying for the
support of the government.
1.-THE injustice Of this is plain. It
discourages business and checks pro-
duction by forcing industry to bear
burdens that shoulc be borne by the
idlers. Much of our present industrial
stagnation is due to the fact that tax
alton has inflated prices until the
public went on a strike and drove
ten billion dollars Of capital out of
productive enterprise into tax exempt
securities. The wrong is even more
manifest when 1t is proved that the
oilers own by far the larger share Of
the nations wealth; enjoyment Of the
nenents OF government: and are best
anle to pay for its support. My tax
alton bills were designed to correct
THIS injustice and to check the danger
Gus concentration of wealth and grow
Ing monopolization Of public re-
sources. -. a.
Farmers Will Be Helped.
Il want to make it plain that the
1and values tax will not touch farm
Sers. All improvements are exempted,
and the bill defines improvements as
till tllliing, draining, fencing, fertilizing,
or anything that has added value ~