The evening herald. (Klamath Falls, Or.) 1906-1942, 1922-12-15
ADVERTISERS
FRIDAY. DECEMBER 10, 1922.
THE TAX PROBLEM
THE people of oregoa have elect.

y co governor VINO IN pieustu
primarily to a program OF tax re.
vision. He is OF opposite political
faith to The Herald, his election was
opposed by The Herald as vigorous
ly as possible-but some two weeks
hence he will become the chief exc.
eutive OF the state, and The Herald
sincerely hopes that his tax leveling
and revising program will succeed,
and will do whatever small thing It
can 20 aid.
Let US nc, deceive ourselves. De.
velopment of industry in the united
States is seriously inpeded, the
whole nation is held under a tight
iy drawn economic check rein. be-
cause our national taxation system
lacks the elemental basis OF fairness
and common sense.
Millions upon millions OF dollars
that might be eapItalizlng new in
dustries, Is Invested in tax-exempt
securities. because the present basis
OF taxation is openly and notorious
ly a move to take 1, out OF the
rich"
Taxation regulated on the ability
to pay Is natural and practical and
agreed to by all Just men.I. Those
who would make the poor man pay
In exact ratio TO the rich. as their
incomes are proportionate. are short.
sighted and unjust. because in the
case OF the poor man an Interference
with hts right 20 the necessities OF
life Is created. which must properly
be objected 10 as a hindrance TO the
development OF the best qualities OF
citizenship In himself and HIS fam
lily.
At the same time, the practical
experience OF the last few years has
shown that the excessive surtax i'm
posed on wealth In this country has
caused the rich man TO put his money
into non-taxable securities. instead
OF lending Il to produetiyet enter
prise.
With what RESULT The 'aggre-
gate income subject TO surtaxes. the
investigators tell US. and the govern
ment records OF Industrial develop
ment which are available TO any
one bear them out, has been reduced
TO one-half OF what II was IN the
first year OF imposition. and the end
Is not yet.
The wealth still exists. The large
individual incomes have not been re-
dueed. They have simply been di-
verted to escape the burden OF taxa
ton. In consequence, hundreds OF
enterprises that might now be profit
ably running are laid aside. or have
not even been created; aud thous- 1
ands OF hands aad minds that might |
bo creating new wealth for the coun- /
try are improfltably employed. or
idle.
II is not a condition that has not /
been recognized, nor is II question 1
OF partisan politics. Oae democratic I
president. one republican president, .
three democratic and one republican .
secretaries OF the treasury, have adj .
vocated a heavy reduction Df sur I
taxes by congress, but congress has
remained inactive because il has not
been spurred from the source TO
which II looks for Inspiration.
IN other words the people. and
that means the citizens OF Klamath
cohnty In common with every other
section Of the nation. have not given
oxpression to their ideas for the gui.
dssce OF their individual representa-
ttyes.Gf
aThe majority of the people OF the
United States live In cities of less
I 1an five thousand population or on
the farms n the nation. So this
problem of taxation is essentially the
problem OF the people of the small
II is serious problem. II Is by
no means an agricultural problem,
the agriculturlst, as a pro-
incer OF essentials and again as the
Ultimate consumer OF the greater
,art of the finished product, gets hit
LOUDLY hard. and his present burden
4 condition Is the reflection of a
general unhealthy taxation distribu-
ipp. ,..,xss.,, 90 xass, - /,