The Glenwood post., 1924-04-24
uaeIe Tets BED Time Stories
Current Events for the Childrsa
and 0rown-ups, Too
REMOVING A DESTRUCTIVE TAX

REMOVING A DESTRUCTIVE TAX
"Well, I don't think you showed
much appreciation of his kindness,
anyway" said Ruth, in schooling
tone of voice.
'I thanked him and was as nice to
him as 1 knew how, but didn't want
his dog and so I refused to take it,"
answered Jack.
"Why didn't you take itf If any
one offered to give me dog, I'D take
it without waiting moment, and I'd
he grateful, too"
ssThere are number of reasons why
1 didn' take it, but the most import
ant one was that dog taxes come due
the first of May and haven't any
money to pay out for tag to put On .
dog. 1 can make better use of my
money. Don't you think so, Uncle
Ted?"
"Yes, Jack, 1 do. If you were iv-
ing on a farm and needed dog to help
herd sheep or drive up the cows or
keep tramps away, it would be all
right, but here in town I think you
would find it good deal of nui-
sance, and, besides, the tax would
make big dent in your spending
money, replied Uncle Ted.
"That, really, is what the tax is i'm
posed for. You prabably have never
heard it before, but it is an old say
ing that the power to tax is the power
to destroy. If the city put the tax
high enough, there would be practical
ly no dogs in town. The tax is intend.
ed to be high enough to discourage
people from keeping worthless dogs
the kind that are most likely to GO
mad and bite people.
"Now that reminds me of the tau
question that is now receiving the at
tention of our senators and congress
men in Washington. The tax they art
considering, however, is not dog tax
1t is tax on incomes, chiefly, ant
congress is reminded of the old say
ing I just quoted to you, that tn
power to tax is the power to destroy
"You don't know very much abou
taxes, yet, because you are to younl
to pay them. That is, you are to-
young unless you let someone give yol
a dog. The income tax, over whicl
congress is debating, is tax levie'
upon business largely in accordanc
with the amount Of income tn
business produces. The tax rate i
not the same for all sizes of incomee
For instance, a man with the smalles
income pays only four per cent tax
but man with the largest incom
pays So per cent"
~ don't think l understand that,
interrupted Ruth.
"That means that the man with
small income gives the governmen
four cents out of every dollar of hi
income over a certain amount exempt
ed from tax, while the man with TIL
largest income pays the government 5
cents out of every dollar.
"Now my experience has shown tina
the income tax operates much the sam
way as dog tax-it discourasec pee
pie from some forms of Investment
Your friends dog will probably b
sent To the pound to be chlo.oforme'
because he doesn't want to keep j
and he can't give it away. Yo1
wouldn t take it because of the lax
There are lot of very able busines
men who can manage large enterprise
and keep industry active but who ar
taking their money out of active busi
less because they don't want to ra,
So per cent tax. States and cour
ties and cities and federal land bank
having been issuing bonds tina. can
be taxed and these big businnss me
are investing their money in thes
bonds. They have a right to do tha
because the government exempted III
bonds from taxes. They can refuse t
invest in active business just as yo
can refuse to own a dog, and thus yo
both escape n tax.
"There are other ways that hig
income tax rate destroys business.
friend of mine was telling me of
case of that kind few days ago. II
had piece of land in a large cit
and had owned it for many year
During that time it had increased