South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-10-16

crate income" which in the language OF the big
bankers means anywhere from $4,000 TO 100000
a year.
The tax BIZ passed by the house cut down the rate
Of taxes the big fellows-those Of quarter
million year or more and year and left the old
burdens upon t:sese "naoderates"
1t Is easily demonstrated that the great bulk OF
useful enterprises directed by men Who have
moderate incomes rather than by the few whose IN
comes run into huge SUMS for which thew have no
personal use and II whom more money simply salts
hes an acquistve sense rather than being SUR 20
further ambitious efforts.
Mr.. Kahn pleads that the tax on bis fortunes
should be cut down because no European country
taxes its ultra-rich so high rate He Writ, %. .bo
senate and the country:
"But federal surfaces r;sa 20 no -,
than exist IN the tax schedules Of any o,b. -.
ton, and that without taking into ac,ount state
income taxes. which are unknown in Europe II
cannot Dc supposed that European peoples have
particular tenderness for rich men, any more
Ihah we nave or that I'm the extremity Of their
Aeeos they would hesitate TO go the limit in ex-
ACTING contributions from wealth. But these
nations nave larger and longer experience I'm
these matters OF governmental economies than
we have and they have learned that there is a
limit beyond which direct taxation cannot 90
without consequences both damaging 20 national
revenue and dangerous to national vveII-beine
Even III our highest surtax-rate is reduced to 80
percent, IL will still be i'm excess of the highest
surtax rate I'm most European countries"
There are a lot of things in America, thank Cod
which do not exist in any European countries
America has never been hampered in its destiny
by any thought that the old monarchies had never
tried what appealed to the American conscience as
Justice Mr.. Kahn might be reminded that the Eu-
ropean countries had centuries Of experience in
monarchies as well taxes-but that did not stop
the colonies from becoming independent.
Ills fear that these rich men will send their dol
lars in the state and municipal bonds if they are
taxed high rates will not alarm the people who want
public improvements
Cities need money. The dollars to them Will
be working for all the people. Possibly the solution
for the problem of Capitalization Of wealth lies in
taxing wealth into public enterprises.
If the only outlet for swollen incomes is more loans
to the Iublic, the scheme might work out well for
the human limitations placed upon consumption.
even in most lavish forms. would owner of
income a million a loss to know what to
do with 1t except invest.
In time the very payment interest on tax ex-
enrpt securities would become something Of fiction
for the only thing that could be with it is to
buy more tax exempt securities
in the last analysis. private money taken
for public use. The million dollar year boys will
ultimately find "haven"-the word is Mr.. Kahn's
in the tax exempt purchase.
In the meantime If there is to be any induce
ment held out to private capital tax burdens should
fall least heavily upon those to whom the getting
of dollars still means something.