The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1925-07-16
HOW EXCESSIVE
TAXES BLIGHT A
NATIONS LIFE
Productive Effort Stops II Gov
eminent Takes Undue Share of
Profits, Says Treasury Official.
WEALTH IN RUSSIA FLED
BEFORE THE TAxGATHERER
Men in America Prefer Golf to
Giving Fruits of Three Days Work
a Week to Income Taxes {.

The blighting effects OF excessive
taxation. leading to nations econom
&c destruction, are described in the
current issue Of the American Bank
ers Association journal by Garrard
Winston, Under-secretary of the Treas
ury. Citing possible effects on the
Ford Motor Car Company. he declares
that the value. is so large and Its
ownership so centered 1t is conceiv'
able that collection OF inheritance
taxes may check, II not destroy, that
unit OF policy which has created and
expanded that industry and thus pre-
vent its future prosperity OF what
avail, then, is 1t to any government II
1t collects one hundred million dol
lars once In estate taxes and destroys
q source OF income upon which 1t can
rely for revenue year after year?
Success OF the Ford Company does
not mean simply that Mr. Ford and
his son have grown wealthy. 1t means
employment OF tens of thousands OF
men and women, that mines. forests.
railroads and vessels are brought into
use; that the public has received an
efficient and inexpensive means OF
transportation: that the farm is in
touch with the city. and the worker
with his Office" Mr. Winston says in
part:
Wealth Fiees Oppression
Upon first impression it might ap
pear that nation could take all OF
the earnings of its citizens or all OF
their property. The Soviet govern.
ment proposed to appropriate all in.
strumentalities of trade and com.
merce. Yet, when the state reached
out to grasp this wealth, 1t disappear
ed and left nothing but few tangible
objects, such as gold and jewels.
which were easily transported to 9th
er countries. Wealth In Russia ceased
to exist.
IF income tax rates are placed so
high that capital in productive bust
ness no longer gives net return com
mensurate with the risk. capital will
go out OF productive business. lie idle.
20 abroad, go into tax-exempt securt
ties, or find other ways OF avoiding
the tax II income tax rates are so
excessive that man OF ability finds
he must work more than three days
a week for the government, he will be-
| come discouraged and decide that the
result is not worth the effort. Less
income will be produced and less will
be realized from the tax.
Recently a letter came to the
| Treasury from small farmer. He
| owned a few acres which in 1913 were
assessed at 5000 and on which a tax
| of S13 was levied. In 1924 the as
| sessed value increased to $4,000 and
| the tax to 1923, but the farm failed
to produce am more. Taxes exceed
ed the rental value of the land and
more than the net earnings of the
property ware taken by the state. The
farm was abandoned and now pro
duces no tax.
| often there come to notice cases
where a particular Improvement is
not made. or a particular business is
not started. because after deducting
J taxes the risk exceeds the value of
the expected return. Men have drop
ped business. spent their winters in
Florida and their summers abroad,
because what they are permitted to
retain under present tax rates is not
worth the labor they must give to
acquire 1t. They prefer golf to the
further development of the country
unsclentifc Taxes Destroy a Nation
"Unscientifc methods OF taxation
may actually destroy the very earn
ings or property which 1t should be
the principal interest Of govern
ment to foster. When 1t reaches the