Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-12-04

upon million dollars. II it had gross in
come of million dollars and a net loss OF
a thousand dollars, it might nevertheless be
taxed five per cent upon a million dollars.
was. say two thousand dollars. and his net
income only two hundred dollars, he might
be taxed five per cent on two thousand dol
lars, should Legislature see fit to exercise
it's possible power under the amended Dill
now awaiting Senate action. Or If he had a
gross income of two thousand dollars and a
be responsible for tax of five per cent on
two thousand dollars. Improbabilities, be 1t
granted. But the merest possibilities are
of great moment when they involve peo-
ple's livelihood and progress.
1t is pointed out by way of reply to such
objections that the pending bill is not in
the nature of statutory enactment, but is
the proposal of constitutional amendment
an income tax measure, which measure it
self will prescribe all needful particulars,
such as exemptions and other assurances
against excess. True it is that constitu-
tionaI amendment should not be encum-
bered with details. But if a safeguarding
clause or word will reassure the public
against prevalent fears why not insert it?
BY making it clear beyond peradventure
that the proposed amendment does not au-
thorize tax upon gross incomes, the bill
can be expedited to passage and to ratifi-
cation at the polls, whereas the Withholding
of such assurance will, as far as we can
observe, foredoom it to defeat. Surely,
then, Nhe friends of tax revision in general
and of the income tax in particular will not
forfeit the success of great cause by re-
fusing to clear up the doubts Of honest
mindsi
They are not called upon, as we have
said, to surrender a principle or to impair
the effectiveness of the proposed amend
ment. If inclusion of the word met would
leave loop-holes for evasion OF income tax
returns and payments, then by all means
find some phrase that will avoid this error
and at the same time preclude the posi-
bility of confiscation by five per cent tax
gross incomes. Certainly there is enough
of legal acumen, enough of legislative re-
sourcefulness in the House and Senate to meet
this requirement. And met it must be. For
while it would be useless to enact revenue
measure that would not produce revenue, it
would be highly perilous to enact one that
would penalize prosperity, dishearten honest
ability and initiative, load labor and capital
alike with insupportabIe burdens, choke the
fires of young industry just when they are
beginning freely to burn, turn back a great
enriching tide Of homeseekers and investors
and deal the future of Georgia well-nigh
irreparable blow.
This The Journal says in full sympathy
with the task which constructive leadership
in the House and the Senate has set out to
accomplish, and with keen appreciation Of
the impossibility of ever satisfying all objec-
tons. But an objection that vitality involves
the welfare of the people and one that in
wolves the effectiveness of the income tax
measure ought to be satisfied. To this end
therefore, all believers in helpful tax revision
should cooperate in perfecting the pending
bill so that it will safeguard the State against
wOuld-be evaders of the law and also against
the possibility of ruinous levies upon gross
income.
Better an excess Of caution now than a
reaping Of the whirlwind in months and
years ahead. Congress is about to be called
upon to remedy in the federal income tax
law certain wrongs and dangers which are
driving numbers of good men out of business
and millions of capital out of constructive
investment. The trainers of the law never
intended that it should result in such Ills
but their failure to provide against contin-
gencies has cost the country dear. Georgia's
lawmakers may we'll profit by the example
Let them cooperate for the passage of a
measure at once safe and effective, and the
State will be their everlasting debtor.
NV EAVORITE STOR1EC