The Challis messenger. (Challis, Idaho) 1912-current, 1925-05-06
Productive Effort Stops If 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 excessiv
taxation, leading to a nations econon
ic destruction. are described in tn
current issue Of the American Banl
ers Association Journal by Garrard f
Winston, Under-secretary Of the Treas
ury. Citing possible effects on tn
Ford Motor Car Company, he declare
that "the value is so large and IT.
ownership so conferred 1t is conceiv
able that collection of inheritance
taxes may check, If not destroy, thai
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 it 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 It 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
that the farm is in
touch with the city. and the worker
With his office" Mr.. Winston says in
part:
Wealth Flees Oppression
Upon first impression it might ap-
'ear that nation could take all of
he earnings of its citizens or all of
heir property. The Soviet govern.
neni proposed to appropriate all in
trumentalities of trade and COM
lerce. Yet. when the state reached |
ut to grasp this wealth, it disa ppear.
d and left nothing but few tangible
pJects. such as gold and Jewels.
hich were easily transported to 9th
countries. Wealth in Russia ceased
!, exist
IF income tax rates are placed an
gh that capital in productive bust
sss no longer gives a net return com.
ensurate with the risk, capital will
out of productive business lie idle
abroad. go into tax-exempt securi.
49, or find other ways of avoiding
tax. II income tax rates are so
cessive that man of ability finds |
must work more than three DAYS
week Tor the government, be will be-
me discouraged and decide that the
'ult Is not worth the effort Less {
'ome will be produced and less will :
realized from the tax.
recently a letter came to the
easury from q small farmer. He q
ned few acres which In 1913 were b
essed at 5000 and on which a tax S
$lS was levied. In 1924 the as. IS
SEQ value increased to $4,000 and
tax to 1923. but the farm failed
proauce any more. Taxes exceed r.
the rental value of the land and
e than the net earnings of the
'erty were taken by the state. The
was abandoned and now pro-
IS no tax.
'lten there come to notice cases
re particular Improvement is
made. or particular business ia
started, because after ,deductine
the risk exceeds the value of
expected return. Men have dron.
business, spent their winters IN "a
IDA and their summers abroad
use what they are permitted tn ea1
under present tax rates is not "
4 me labor they must give to M
re H. They prefer golf to the
" development Of the country III
,'ent'hc Taxes Destroy a Nation II
iscientlnc methods of taxation 8
actually destroy the very earn. +
u property which 1t should he +
'rinclpal interest of a govern. &
TO FOSTER. When 1t reaches the 8
OF what is known as its taxa. E
'pacity. nation has begun to &
= eaaes are raised too high. a
y VIII slowly but surely do
''seil. 1t will use for daily con. E
ION the seed corn ON which its
life depends, and the shirt -,
We ana adventure in its peo-
=. hhaiy disappear One or &
vi three things happen. The +
= Vi consumption is cut down 8
means lowering of the stand. .
living or capital accumulations
tensions. improvements and
must diminish. re. &
IN a slowing up of progres, 8
ssening eventually of TAXABLE
}; or thirdly. a slackeninr ~
u the part of the citizen will
ice when too large part o, h., &
are taken in taxes. Il
eHort in taxation should bo
the tax which will continue
money over period o. wears nH HHHHHl
ny win an excessive tax its - -
as railen off year by wear
zen rate reduction is reflected
crease of taxable income r.
asury is to be assured a con-
OF revenue. our citivens
osper- If they are to prosner
opriation by the state Of their
ana property must be based {
)n0miN IIu >SOo