Arizona republican., 1921-03-19
A propensity to hope and joy IS real riches; one to fear and sorroaO, real poUerty. Hume.
A Proposed Tax Revision

That foremost of the industrial depres sion and the great volume of unemployment in this country is the present federal tax system by which capital needed for the of industry has been driven invited elsewhere is the opinion of MT. Frederic E. Kip, large textile manufacturer of Montclair New Jersey. who has been spending the winter Chandler.
 MT. Kip has issued pamphlet in which he points out the of the present troubles and at the same tirne the remedy Students of economy and the countrys foremost financiers have agreed with him that war tax legislation has diverted capital away from industry.
 The theory of the war time taxation that Y would make the rich pay for the war but that was only theory which the most of even at that time did believe would be sustained by practice. We had often been the witnesses of the facility with which the rich pass their tax burdens along to the multitude. The only reasonable that could have been given for the system adopted in the stress of the governments urgent need of money and the need of getting it quickly. A natural effect of the high income and surtaxes was the investment by people of large incomes in tax-exempt securities of which MT. Kip points out, there this country $16 o0o-federal state and municipal The appropriation by the government of the profits of business instead of allowing them strengthen business against future losses has also had its effect in producing depression
 The worst effect has not been the passing of
 
 the cessation reduction industry, the increase of unemployment, as MT. Kip says, where rich has been pinched," 5000 have suffered by being thrown out of employment until the volume of employment is than 5000ooG
 The chief feature of MT. Kips plan is business turnover tax one per to paid by the seller ton monthly business in of $500, the Joe paid monthly. This would include tax well on merchandise transportation, telegraph tele warehouse receipts theaters moving pictures, places amusement on all charges of admission; all charges by lawyers physicians, dentists, arch tects. engaged in professional vacations; all sales of real estate based the actual amount of cash involved; and of one-sxteenth of per all sales of stocks and bonds. privately for through exchanges. There is also proposed tax Of 12h per cent net profits corporations and firms. this be paid quarterly.
 The income tax is by to be abandoned in this plan. but it is made liberal beginning with $1oo0o s2o,0oo, per cent; s2o0oo- s4o0Oo. four cent and to incomes of $1,5oo,o0o-' s2.ooo.ooO ss per cent: all incomes in of $2,ooo,ooo 35 per cent.
 Of the turnover plan MT. Kip says:
 Our workers now would rather contribute their share toward federal expenses by paying little rpare for thei-requrements through q turnover tax tre1easing fgpds to flow back into industry). and thereby obtain steadier employment and wages If a worker is out of employment week it will him least twice what he would have to pay a whole year through a per turnover tax"
 There is undoubtedly much merit in MT. Rips plan. Thoughtful students the economic prob lems of America beginning to realize that fun damentally need a decided change in system federal taxation which will restore activity to in dustry and the same tme distribute the burden of taxation equitably.