The daily times., 1921-12-29


THE power to tax is the power
20 destroy" said Chief Justice Jonn
MARSHALL. The exercising today OF
nat power beyond the limits of dis
-retion and good Judgment will un-
Iuestionably spell disaster. The
,rosperity OF the country depends
.apon the taxation laws in a larger
Aeasure than is generally appreci-
an, woman and child in the land
.rectIy concerned 4n .ne pfovls-
ons of the temporary tax law recent
= passed by Congress. Since the
,elfsh dictates of human nature
.ompel one to look at the PROPOSE
..on from the standpoint of how he
.lmself will be affected, 1t Will be
yeIl to anaiyze the continuation OF
Ugh surtaxes on incomes and profits
rom the standpoint OF the various
arties interested.
Contrary to the generally accept
Il opinion. the rich man has less
ault to find with high rates on
trge incomes than any other class,
nee all he has to do is to invest his
.ealth in securities which are ex-
mpt from taxation. 1t is not the
ossession of wealth that has come
q be regarded in the eyes Of the law
lakers as criminal and therefore to
-;eh 1r1f ic rafhar tho r.
uiring of wealth that is judged a
menace and for that reason to be
.bolished. The rich man realizes
hat being the possessor of property
q should contribute more toward
,efraying the cost of operating the
xate than his less fortunate brother,
tut he does object to what seems to
lin to be confiscation by due process
If law. Should his business ventures
his year prove unsuccessful, he is
obliged to assume the entire loss.
While he is still liable for enormous
taxes because of last years profits.
which, if he is successful. the Gov
ernment clamis a large part of the
profits. Should he be unsuccessful,
the total loss is to be borne by him.
This means that he is not justified in
assuming the risks of trade and he,
therefore, diverts his wealth from
channels of development and pro-
duction into the stagnant pools of
tax exempt securities. Thus an end
is put to those enterprises of a ven
turesome character through which
the great American wilderness has
been transformed into the most fer
tile continent Of the world.
The common birtnright Of every
American is the incentive fer en-
deavor and the reward for accom-
pliShment. Incentive is Tie very
soul of endeavor, the basis Of all am
bition. To impose penalty ,Dnu
success is to rob ambition of incen-
tive and cast a blight upon enter
prise and endeavor. Under lnonar-
chy rule the distinctive class are deli
nitely fixed Under communstic
form of government all classes are
leveled into one. Under demo-
cratic form. Of government, and TN
der that form alone, is the opportu-
nifty afforded to better ones state
through endeavor Let us be not
unmindful of the fact that it was the
young man of limited means and un-
limited ambition expressed in en-
deavor, who desiring the rewards OF
success. has become our big man of
oday. It is obviously unwise TO en-
.ct legislation the result of which
vii lbe to discourage saving on the
at of the man of moderate means.
To kill the goose that lays the
alden egg proved ill-advisedly long
o. To increase the burden at the
p and expect thereby to lessen the
essure at the bottom is a fallacy
drive capital out Of productive
annels, and to flood the countr-
tn tax exempt municipal, county
state bonds is to stop the wheels
industry. To console oneself in
belief that by increasing the
lount of municipal work to b
ne will permanently relieve unem
oyment is to attempt to raise one
If by ones boot straps "Taxa-
On according to ability to pay" is
Ingredient of the promised pana-
of the visionary Lenine and the
volatile Trotzky.
1t is the sacred duty of those en-
trusted with the determination OF
policy to be adopted in taxation to
20 more harm to. production and
.tribution than is absolutely naces