Newark leader. ([Newark, Ohio]) 1917-1946, 1921-08-19
Let Idle Rich Pay
PRODUCERS RELIEVED - TAX
PUT ON DRONES
Minnesota Congressman Introduces
Bills That Will Aid Labor and
Hit the MOnOpOlists

Four bills that amend the revenue
law so the burden of taxation will be
! lifted from labor and the farmer and
placed upon the owners Of. used mon
opolies and the inheritors of huge
| fortunes were introduced in Congress
| by Representative Oscar r. Keller, OF
st. Paul, who was sent to Washing
ton as an independent with the back
ing of union labor. The bills were
drawn by Jackson H. Ralston, attor-
nev for the American Federation OF
Labor, and the land-values tax bill
which the program is built around
has been indorsed by trades and lahor
assemblies all over The United States.
The first bill repeals all existing
transportation and sales taxes except
those on tobacco, distilled spirits, oleo-
margarine, habit-forming drugs and
products of child labor. The bill also
repeals the eXcess-profit tax and the
&c per cent on the income of corpora
tions.
The second bill amends the income
tax so as to distinguish between
learned" and "unearned" incomes.
The tax OF "unearned' incomes to-
gether with the super-taXes is re-
famed, but the tax on earned" income
is cut in two.
"Earned'' income Is defined as IN
come derived from personal services
or from business personally conduct
ed. "Unearned" income is defined as
income derived from rents Of land or
other property, interest on mortgages,
notes or bonds, dividends on shares of
stock whether in the form of money
or stock dividends, and from any
source other than labor, skill or bust
ness OF industry personally conducted
Of the person receiving the income.
Inheritance Tax Increased
The third bill amends the inherit
ance tax. Beginning with estates of
$4,000 to $4,000, there is tax of
l per cent; $4,000 to $4,000, 2 per
cent; $4,000 to $4,000, per cent;
$15O,0OO to $250,000, 6 per cent. The
taxes then graduate on an increasing
scale until the point of $100,000,0O0
is reached, after which the tax is 80
per cent.
The fourth bill provides for tax
of l per cent on land values in excess
of $4,000 after eXempting buildings
and improvements, and in the case
of farms, cost of clearing, and drain
ing and maintainance of fertility.
This bill aims to tax monopoly hold
ers of natural resources, valuable
"sites" in cities and the holding of
land out of use. The exemptions are
so applied to farms as to exempt
from taxation, according to Mr. Kel-
ler's estimate, approximately SO 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 corDo-
ration income tax" Congressman
Keller said, "especially when | am
known to be a sympathlzer with or
ganized labor and to have 100 per
cent record on labor legislation, but
both these taxes are shifted to the
consumer. Investigation by the De-
partment of Justice showed that these
two taxes added 22 per cent to the
cost of the average article.
"In other words, manufacturers
and merchants figure up the amount
of thei, income and excess profit
taxes and add it to the cost Of the
goods-after allowing themselves the
benfit of the doubt and taking big
profit for collection. This means that
labor, which consumes more than 40
per cent of the nations goods-pays
the taxes which are levied on great
corporations. Every time you ride
on railroad, buy cigar or 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 any of the
hundred articles that af amily needs
Takes Taxes Off Consumer
"The taxes which my bills repeal
took a toll of $1,730,000,000 off in
dustry last year, and this was in
creased to five times before it was