The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1922-10-13

AtAlG hAANAlE VI H4LofEG4hbluuEkl1Hlk QNWAkIf
seripts blem OF tax exemption.
The people of the United States
are now paying six billion dollars
a year In taxes-tederal. state and
local.
1.-THE acquisition by public own
ership Of the utilities, the mines
and the railroads would not only
Withdraw property worth many
billions from local taxation but
would more than double the total
Of tax-exempt securities. Econo-
mists have estimated there would
be seventyone billions outstanding
in tax-exempt securities once
these properties passed under pub.
lie ownership. The total taxable
wealth Of the country is estimated
at only one hundred and forty
five billions.
ut is evident that the unexempt
property would have to bear the
constantly increasing burden that
would follow In the wake Of such
program as would destroy the
morale of our people, taking away
their independence and initiative,
destroying incentive to thrift and
industry and teaching the people
to rely on government instead Of
working out their own salvation.
Eternal Vigilance Needed.
These idealized theories mutt
be analysed from the angle Of
their cost to the people, as well
as their degenerative effect on
popular morale.
at can be truly said that eter-
nal vigilance is the price of mod
crate taxation In the same extent
as 1t Is Of liberty. There was new
er greater need for the exercise
of that vigilance than exists to-
day. In this way only can a pol
icy Of expansion be prevented
from running riot"
Mr.. Hallanan reviewed the con-
dltion Of abnorrnalcy that followed
the World War in its relationsh p
TO the taxation increases OF tie
past four years. He sad:
THE immense increase IN the
cost Of labor and commodities, due
to conditions resulting from the
war was almost Immediately re.
flected in, an increase in tax rateS
to meet the changed economic
cond .tions of the country, thus
directly adding to the burden cG
state and local taxation. Indirect
" tho burden was further aug.
mented by the Immense increase
in federal taxes. The necessity for
increased revenues to meet the
stress of the war not only corr
PEELED the federal government 10
increase the tax rates on most OF
the taxable objects. therefore con
stltut'ns the main sources of fed
eral revenue, but also compelled
II 10 reach out for new sources Of
revenue to meet. In some part, tha
extraordinary, demands on tbs
publ c treasury, so federal taxes
were extended to include inherit
tances, profits. sales and numer-
Gus other imposts, thus greatly
adding to the burden of the fed
eral tax. Using ordinary receipts
as the measure Of the burden, We
find that in tn entire country ;As
ntr capita Of the federal tax bur.
don in 1916 was s7.62, and in 1891
S52.05. an Increase Of 5S3 per cent
III tie tive-year period.
Big Federal Increase
In orr Own staAa the increase
in the federal tax burden during
the war period can be measured
in part by comparison OF inter
nal revenue collections in 1915
with 1921. For the fiscal year 1916
the total Internal revenue collec-
lions N West Virginia nmountal
to $2,O99. 127.46, representing a
per capita federal tax burden Vt
| $154; In 1921 the collections
amounted to So 211 ,O27.30, per
capita OF $22.S2, being an increase
OF 1852 per cent IN the flve-year
period. This immense increase IN
federal taxes has had an Indirect.
but pone the less Important, bea.-
ing on the increase in state and
local taxation"
Other causes which Mr.. Halla-
nan declared had contributed to
high taxation were the expansion
OF governmental functions in re-
cent years and the demand Of the
people for better public service.
better educational facilities better
public buildings, better sanitation