The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1925-04-29
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 excessive
taxation, leading to a nations eonom-
&c destruction, are described In the
ers Association Journal By Garrard B.
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 conferred II 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 it to any government II
it collects one hundred million dol
lars once In estate taxes and destroys
a 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 mean
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 IL In
touch with the city, and the worker
with his ONCE" Mr.. Winston says in
part:
Wealth FIees Oppression
Upon first impression it might ap-
pear that a nation could take all Of
the earnings Of it's citizens or all OF
AL~s, --e---A- M. C--4-A -~--C--
ment proposed to appropriate all in
strumentalities Of trade and com.
merce. Yet, when the state reached
out to grasp this wealth, it disappear
ed and left nothing but a few tangible
objects, such as gold and jewels,
which were easily transported to 9TH
er countries. Wealth in Russia ceased
to exist.
EFF income tax rates are placed so
high that capital in productive bust
ness no longer gives a net return com
mensurate with the risk. capital will
20 out Of productive business, lie idle,
90 abroad, go into tax-exempt securi-
ties. or find other ways OF avoiding
the tax. II income tax rates are SO
excessive that a 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 g letter came to the
Treasury from a small farmer. He
owned a few acres which in 1918 were
assessed at 5000 ms on which a tax
" $I3 was levied. In 1924 the as
sessed value increased TO $4,000 and
the tax TO S123. but the farm failed
10 produce any more. Taxes exceed
ed the rental value Of the land and
more than the net earnings of the
property we're taken by the state. The
farm IVES abandoned and now pro
duces no tax.
Often there come to notice cases
where a particular Improvement il
not made. or a particular business is
not started, because after deductins
taxes the risk exceeds the value oil
the expected return Men have drop
ped business. spent their winters il
Florida and their summers abroad
because what they are permitted t
retain under present tax rates is no.
worth the labor they must give Il
acquire it. They prefer golf to the
further development of the country.
unseientiIc Taxes Destroy a Nation
~Unscientifc methods Of taxation
may actually destroy the very earn
ings or property which It should b.
the principal interest Of a govern
ment Ia foster. When It reaches tn,
limits OF what is known as its taxa
bic capacity. a nation has begun L
die. II taxes are raised too high,
country viii slowly but surely d.
stroy itself. It viii use for daily con
sumption the seed corn on which Il
future life depends. and the spirit O
initiative and adventure in its pc,
pie win finally disappear. One O
more Of three things happen: TIL
quantity Of consumption is cut dOwr
which means a lowering OF the stand
ard Of living: OF capital accumulation
for extensions. improvements an
new undertakings must diminish. r,
sulting in a slowing up Of pr0gres
and lessening eventually Of taxabl
revenue; or. thirdly. a s~lackening 9
effort IN the part Of the citizen wi
take place when too large a part Of hi
earnings are taken IL taxes.
"The effort in taxation Should 3
to find the tax which win continu
to raise money over a period OF year
Invariably. with an excessive tax, 1,
yield has fallen OF year By yea
while each rate reduction Is renscte
IN an increase Of taxable income.
the Treasury Is to be assured q CO.
tinuance Of revenue. fouE cIti4er
must prosper. IL they are 70 prospe
the appropriation By the state Of theI
earnings and property must Be bass
0Don economically sound DrlneipleAs