The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-06-21
HELLER'S BILLS
MANEG00D
Would Equalize Taxation and
Stop Tax Dodgers

Four bills that amend the revenue
law so the burden of taxation viii
be lifted from labor and the farm
er and placed upon the owners Of
used monopolies and the inheritors
of huge fortuntes We're introduced
in Congress last week by Repre-
sentative 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, at
torney for the American Federation
of Labor, and the land values tax
bill which the program is built
around has been endorsed by trades
and labor assemblies all over the
United States.
The first bill repeals all existing
transportation and sales taxes eX-
cept those on tobacco, distilled spin
its, olemargarine, 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 corporations.
The second bill amends the in
come tax SO as to distinguish be-
tween earned and "unearned' in
comes. The tax on "unearned' in
comes together with the super-taXes
is retained, but the tax on learned
incomes is cut in two
Earned" income is defined as in
come derived from personal services
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, diVI-
dends on shares of stock whether
in the form of money or stock divi-
dends 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 inheri-
tance tax. Beginning with estates
of $4,000 to $35, 900 there is tax
of one per cent; $4,000 to $4,000
two per cent; $50 600 to S150000
four per cent; S150,000 to $250,000
six per cent The taxes then grad
nate ON an increasing scale until
the point of 100000 O00 is reached
after which the tax is 90 per cent.
The fourth bin provides for tax
of one per cent on land values in
excess of $4,000 after eNempting
buildings and improvements, and i'm
the case of farms, cost of clearing,
and draining and maintenance of
fertility This bill aims to tax
monopoly holders of natural re
sources, valuable sites in cities
and the holding of land out of use.
Tho rr,e15.1
farms as to exempt from taxation
according to Mr. Keller's estimate
approximately 9S per cent of all
actual farmers. Owners of city
homes also would be exempt from
taxation under the proposed law.
"Some may wonder why ! would
repeal the excess profits and cor
roration income tax" Congress
man Keller said. Especially when
| am known to be a sympathizer
with organized labor and to have a
100 per cent record ON labor leg
islation, but both these taxes are
shifted to the consumer. Invest-
cation by the Department of Jus
tice showed that these two taxes
added p 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 it 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 ma
tion's goods ds-pays the taxes which
are levied on great corporations.
Every time you ride on a railroad.
buy a 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 anv one of the
hundred articles that a family needs.
Takes Taxes off Consumer
"The taxes which my bills repeal
Continued on page ~