The Washington times., 1921-09-24
lNONEYAND TRADE
Tax Revision.
The Big Outcry.
Wrong Tax Theory.
Rockefeller's Levy.
BY GEORGE w. HINMAN.

N~~---~
desire to force those who paid the
main cost of the war to go on paying
the cost Of peace. The farmers or
ganizations, apparently. wish indus.
trial capital to carry the load indef-
initely. They cling to the highest
surtaxes and want them retained.
Industrial capital Is supposed by
a few men who are too rich--prin-
cipally John d. Rockefeller. The
director Of taxation for the Farm
Bureau Federation, for instance, es-
Inmates that Mr.. Rockefeller's in
come last year was $40.000,000 and
his tax S25,000.0 900. Whether these
figures are right or wrong nobody
knows. but that Is not the point. The
point Is that apparently the Farm
Bureau Federation does not wish Mr..
Rockefeller's taxes to be any less.
Perhaps his taxes should not be
less; perhaps they should be. Per
haps Mr.. Rockefeller should be put
In q class by himself for taxation
purposes--listed for lawmaking pur-
poses as q plutocrat Of the first
class, and treated accordingly, just
as New York or Chicago Is legis-
lated for as a city Of the first class
In Illinois or New York State.
All things are possible In this
country except one-that Is to make
a colossal system Of national taxa
ton, which affects millions OF citi-
zens, pivot on the case Of one super
rich and perhaps a tiny cluster OF
associates.
A Test Case.
The fact is that whatever Is done
whit or to Mr.. Rockefeller, 1t can
settle nothing, unless his is made the
test case for the income tax sched.
ules; in which event the present
hard times would be made perma-
nent and some 100000 to 9,000,O 900
other tax payers would be half ruined
to get even with one. Here Is the
meat of the matter in figures:
In the last detailed report some
sc, ,O00, ,000, 900 net personal income
was returned for the whole United
States. This was in the boom year
1919. Yet the men with a million or
more each accounted for only $152.-
900 900 of the enormous total. the
men with more than 100000 each
accounted for just SsS0.000. 900 out
Of the twenty billions, and In the
$3.50, ,000, 900 were included. OF course,
Mr.. Rockefeller and his friends. The
whole income Of the Rockefeller
group would not have met the bills
Of the Department of Agriculture for
two years, even II taxed 100 per cent.
A whole lecture on taxation could
be preached from these figures. It
is not necessary. On their face they
show the folly OF levying. taxes and
surtaxes on the rest OF US according
to any standard of the Rockefeller
kind or class. Such a course would
be the way to industrial ruin. In
vestment would be starved; enter
prise would be reduced to the vanish
ing point; credit would be chronically
scarce: capital would be deprived
of its principal source OF supply.
A Wrong Theory.
It is strange that the representa-
tives Of the farm interests refuse
to see this-that they proceed on
the assumption that the severer the
load on Industrial income, the bet
ter II viii be for them. The exact
opposite il the case. This Is ap-
parent now. Industry languishes,
Unemployment is general. the de.
mand for farm products dwindies and
the farmer Is in distress for an ade-
ouate market at adequate prices.
But that il not all.
The income taxes-especially the
higher rates Of the income taxes
do not affect the farmers so vitally
as they affect his customers. Thomas
Lamont mentioned recently that In
1917 on a gross product Of about
$50 900 ,000, 900 the farmers returned
FOR tax purposes only S800,000,O0o as
net Income. And to this statement
can now be added the record for 1919
gross value of farm products for
the year S25,000, 900. 900; net income
reported for taxation 1920. 100000.
The Present Proposition.
Under these conditions, nobody can
that the farm population Is
so vitality concerned with the in
come tax that its word should be
powerful or It's influence decisive.
The present proposition Is to help
credit, investment and enter
prise on their feet again; to stop the
seizure of capital at its source for
purposes, and to dis
tribute the burden Of taxes in such
q manner that industry may carry
it more easily. To frustrate this
plan, which the Senate Finance Com
mittee has had in mind, merely to
get even with John D. Rockefeller
and some half dozen associates, is
not In order. Such Q course would
hurt the farmer in many ways, and
help him not at all.
The Senate Committee plan leaves
much to be desired. but II is n vast
advance over the plan now In oper-
alton. With a little amendment, It
promises many things that
the people as a whole will find to
their lasting benefit. For what do
the people as whole want today? |
To help prosperity. To get even |
with half dozen men is q secondary |
That they can do |
any time the majority desire Il.