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About St. Johns review. (Saint Johns, Or.) 1904-current | View Entire Issue (July 27, 1917)
HOW SHALL WE PAY FOR THE WAR? A Constructive Criticism on the House Revenue Bill, LOANS BETTER THAN TAXES Five Reasons Why Excessive Taxes l tin Outset of War Are Disadvantage out Great Britain Example Worthy of Emulation How the Taxes Should De Apportioned, By EDWIN R. A. 8ELIOMAN, aii-Vlcknr 1'rofcBsor of Political ICcon omy, Columbia University. On Mny 1, 11117, the House of Hop rosi iit nt Ives msneil mi act "to provide revunuo to tlofrny war cxpcimt'S nnil for other purposcH." In the orlRlnnl lilll iim prcsi'iilcil by the Cominlttce ot Wiiyn nnil Momm, tlni uililltioniil reve inn to lie derived wii.h iwtltnutod nt qiu, IL'0,000. 'J'hu iiiiiciiilniciit (o the In come lux, which wiim tucked on to tho bill ilurliiK I lie iIIsciimIoii In the House, wiim expected to yield nnothcr $ 10,000,. woo or jr-o.ooo.ooo. , In (IIiH'UhmIik; the lloiipy hill, two prohleiim arlne; I. How much Mhoiild he ruined by Uixiitlou? II. In wlmt iiiniiiier nhoiild thin hiiiii lie ruined? I. How Much Should De Raited by Taxation? How wiim the IlKUre of $1,800,000,000 arrived nt? The nimwerlH nlniilt. When tho KiH'retiiry of the Treasury emtio to OHlliiiute the nddltloiiul war expeiiNm fur the year ItllT-lH, ho culculuteil thut they would uinmint tu home ftl.OM),. OOO.iMXi. of which :1,000,0X),000 wiih to he iillollud to the ullleK. mid $:i.l'00, 000.000 wiim to liu utilized for the do iiimtlt! purposoH. Thinking thut It would he a fair propoNltlen to divide thin latter hiiiii between Iouiih and tnxiw, ho 'oueltided that the amount to bo ralried by taxeH wiim H.MtO.WMl,- Thent ure two extreme theories, euch of wlilcli may bo dlxmlxNcd with wiuit eourti.y. The one Im that all war ex lieiidltureM nIioiiM he defrayed by Ion in, mid the other U thut all war eipcndl turr xhoiild be defrayed by tux cm. Kneli theory In untenable, It In Indeed true that tho bunlciiM of the war Nhotild be borne by the pre eut nither than the future Kcncrutlon; but tlilMilocHiiot mean thut they whould be borne by thin yeurV tuxiitlon. .MvetliiK all warexpeimeH by I unit Ion iniikon the taxpayerH In one or two yeura Ikiit the burden of hciii'lltx thut outsht to be distributed at leaNt over a deeude within the miiiio irenerntlou. In Hie ni'coiiil place, when expend), turew appmiieli tho Kluantic hiiiiih of preentHlay wnrfure, the Uiouly iiol ley would require iiihih Uiau tho total NiirpliiM of hik'IiiI lueoiue. Were this iihrtolufely lie iNiny, the eiiMilin,- tin v oo In tin eeoiiomlc life of the coinmuub ly would liuve to bo endured. Hut where the dlniiMlent are ho urent and nt J be winie tlmo mi liniiecesHiiry, the tiu-inily policy may lie neciareii im prHclleMble. KrrHHry .MeAdoo hud Hie rlht In Mliwt nml bmbly couiiueiidable roup nm In decldliiK that u HUlwIiintbil por HiHi. ut leuat, of Hie revenues hIioiiUI bo dertvetl from laxiitloii. Hut whet) ho hit iiui the pluri of Wl-flO per cent., tlwt I, of nilahiK one-half of all do lunatic war expuiidlluroN by tux en, the iuotlou urlneH whether he did not kc too far. Tiio relative proportion of Iouiih to luveg In after all u purely busliiesa propollloii. Not to rely to a hirno ex tent on loam at the niiUct of u war Is a mlaluko. DUadvanUae. of Cxeesslve Taxet. l'h tlbxiilvitntiiKiT. of oncomIvo luxen ut the (Milwt of Hie war are us follows: 1. l!iceautlrt Ihxih mi inusilinptlou Will ohum popular iweiituieiit. St. lSxitrive tuxiw on tiidustry will dlimrraiute Imslm, (lump iiitliiishiiu mul iiwtrlot tlio Hplrit of enterprise at lb very time when Hie opiMudto Is iievilwl. St. lluwrth e laved on IneouieM will de tMt the surplus available for Invent motdn uih! luterfero with the pluului: of the vworimMM Iivuiim whtub wilt bo mves wiry In any event. I. lCxvtiMlve luxin ou wealth will SIMM u erIoiiM diminution of the In- etWMM which aio at present larcely drawu Uhhi for the mippnit of educu tkwal hwI' philanthropic enterpriser, itm-ettver. tluwo nouires of mippnrt wuuld Im) tlrltl up prwlsoly at the time when (he need would bo Kreutest. 5. Excessive taxation at the outlet of tho war will reduce the elasticity avail able for the increaiing demandi that are soon to come. Great Oritaln'e Policy, Tnla limit Hrltutu us uu example. DuriiiK the Unit year of the war stir liieimuml taxeH only slluhtly, In order to kmtp ludiuitiies koIiik at top noteb. DuriiiK the Kccoud year hIiu ruUed by iir luxes only U per cent, of her wur oxuMMlttiiroN. DuriiiK the third year ulio lvWd by Mddltlouul tuxes (over unj above tho pro-war level) only Klif fatly more than IT per rent, of her wur espouses. If we Mtiould attempt to do us mutti lu tho Hint year of the wur as (Ireut lli'lliilu did In the third yeur It would KUlttt'o to hum by taxation $1. 1:50,000.. ooq. If, tu order to bo nbsulutely on the wife side, It seemed advisable to lucre tho biui to $l.r00.000.000, this sUauW. In our opinion, bo tho wall, luuui. REVIEW'S LEGAL BLANKS The following list of legal blanks nre kept for sale at this office and others will be added as the demand arises; Warranty deeds, Quit Claim Deeds, Realty and Chattel Mort uugos, Satisfaction of Mortgages, Contracts for Sale of Realty, Hills of Sale, Leastis. Neta th UU1 tn eur gB4f, In considering the apportionment of the extraordinary burden of taxes In war times certain scientific principles are definitely established: How Taxes Should Be Apportioned. (1) 7he burden of tweca inut he spread as far an possible over the whole community so as to cause each Individual to share In the sacrifices ac cording to his abltyp to pay and ac cording to his shared the. Government. (2) Taxes nu consumption, which arc necessarily borne by the community at InrRc, nhould be Imposed us far as pos sible on articles of quast-luxury rather than on those of necessity. (3) Excises should he imposed as far an possible upon commodities In the hands of the final consumer rather than upon the articles which serve pri roarlly as raw material for further production. H) Taxes upon business should he Imposed as far as possible upon net carnhiKs rather than upon gross re eclpts or capital Invested. (0) Taxes Upon Income which will necessarily bo novcre should lie both differentiated and Kradunted, That Is there should be a distinction between earned and unearned Incomes and there should be a higher into upon the larger Incomes. It Is essential, however, not tu make the Income rate ho excessive us to lead to evasion, administrative dllllciiltles, or to the more fundamental objections which have hern urced above. (0) The excess prollts which are due to tho war constitute the most obvious nnd reasonable source of revenue dur lug war times. Hut the principle upon which these war-prolll taxes arc luld must ho equitable In theory and easily culculuhtc In practice. The Proposed Income Tax. The additional Income tux us passed by the House runs up to a rate of i per cent. This Is n hiiiii unheard of In the history of civilized society. It must he remembered that It was only after the first year of the war that Hreat Ilrltalu Increased tier Income tux to tho maximum of nt per rent., and that even now In the fourth year of the war the Income tax does not exceed -t-!!i Iter eeiit. It could easily le shown that u tax with rules on moderate Incomes sub atiiutlnlty less than In Oient Ilrltalu. and on (he larger Incomes ubout as high, would yield only slightly less than Hie .:r.,l0(X),(X)0 orlglimlly estimated In the House bill. It Is to be hoped that the Hetiute will reduce the total rale on the highest In comes (o ill per cent, or at most to 40 per cent, and that at the same time It will reduce the rate on the smaller In comes derived from personal or profes sional earnings. If the war continues we shall have to depend more and more upon the In come tax, Oy Imposing excessive rates now we are not only endangering the future, but are Inviting all manner of difficulties which even Oreat Drltaln has been able to escape. Conclusion, The House hill contains other funtln. mental dcfcctH which may bo summed up as follows: (1 ) It pursues nu erroneous principle In Imposing retroactive taxes. (U) It selects un unjust and uuwork able criterion for Hut excess-profits tax CD It proceeds to an uuheiird-of height In the Income tax. (I) It lniMseH unwarranted burdens upon the consumption of the conimii ulty. (f) It Is calculated to throw business Into eon fusion by levying tuxes on gros receipts lusteud of iiihhi commodities. (Ill It fulls to make u proper uso of stump tuxes. (7) It follows tin unwleutlllc system tu Its Hut rule on Imports. (S) It Includes u multiplicity of m( ty and iiulticratlve taxes, the vexatious u ess of which Is out of all proportion to the revenue they prixluce. Tho fundamental Hues on which tho House bill should bo modlllcd ure sum med up herewith: (1) The amount of new luxation should bo limited to ,'J50.(KX).(K)0-or at the outset lo $l,WX),()00.00. To do morn thuu this would bo as unwise as It Is unnecessary To do eveu this would bo to do more than bus ever own dono by any rlvllUed (Jovprn- incut In time of stress, (-) The excess-profits tux bused upon it uouud system ought tu yield ubout fr.ix,oiK),ooo. (II) The Income tux schedule ought to be revised with a lowering of tho rates on earned Incomes below $10,000, and with an analogous lowering of the rates on the higher Incomes, so iim not lo exceed 31 per cent. A careful cul dilation shows that an Income tax of this kind would yield some X 150,000, 000 nddltloiiul. N) Tlie tax on whisky mid tobacco ought to remain approximately as It Is, wltli a yield of ubout I'-'M.OyXMMW. Thene three tuxes, together with the stump tux at eveu tho low ruto of the House bill, and with an Improved ail tomoblle tax, will yield over $1,250. 000.000, which Is the amount of money thought desirable. The above program would be In liar- moiiy with an unproved scientific ays Com. It will do uway with ulinost all of the complulnts that are being urged against the present. It will refrain from taxing the consumption of the poor. It will throw a far heavier burden upon the rich, but wilt not go to the extremes of conllscutlou. It will ob viate Interference with business and will keep unimpaired the social pro ductlvlty ef the community. It will establish a Just balance be. tween loans ami taxes and will not succumb to the danger of approaching either tho tax-only policy or the loan only policy. Above all, It will keep an undisturbed elastic margin, which must be iu'.re and more heavily drawn upon as tba war proceeds. At the pace some people pur sue happiness it would take them a hundred years to cret across their back yard, The Portland Garbairo Co. is prepared to remove rubbish of any nature from tho residences and business places of St. Johns at 75c per month for residences and from business places at reasonable rates. Calls made every baturday. Leave orders at St. Johns Hardware, or phono woodlawn WW. A Newest Creation p McCitl, Draped Styles Ajrnin in Vojrue Try A Cup OF COFFEE Made With One Of These New Electric Percolators After one trial you'll be ready to THROW AWAY The Old COFFEE POT Call and see our new display of these Elec tric Percolators. PRICKS MODltRATK ELECTRIC STORE Electric BulldliuJ Notice to Creditors In the County Court of the State of Oregon, (or the County of Multnomah. In tho Matter of the Estate of J. II. Fletcher, deceased: Notico is hereby (riven that I, John Hamilton Fletcher, have been duly ap pointed executor of the will of J. H. Klotcher, deceased, by Honorable George Tazwell, County Judge of Multnomah County, Oregon, and have qualified. All persons having claims against said decedent, or his estate, nre hereby directed to present the same to me verified in tho manner required by law, at tho ofllce of George J. Per kins. 1117 Hoard of Trade Building, Portland, Oregon, within six months from tho date of the first publication of this notice,, John Hamilton Fletcher, Executor. Georgo J. Perkins, Attorney for Executor. Date of first publication July 13. 1917. Date of last publica tion, August, 10, 1017. J. R. WEIMER Transfer and Storage We deliver your roods to and from all pc7ta of Portland. Vancouver. Linn too, Portland and Suburban Expreet Ce., city dock and all points aocesalbla key vasTW Mom nel tmnkuru atevta John Poff J. II Harvey Wilcox Transfer Go. Phone Columbia 30S 06 N, Jersey St. Johns, Ore. Deafness Cannot De Cured by loc.l uppllcttloii., at they canuoi rwich UUrm.ra porlwn ol I no rer rnr it only out way to curt ilmintM. and that It cy coniiiluuonai rcmruira iinrtt it caui.d by an InrtainrU cvndltlon ot til mil coua llnlnc of III. Kutuclilan Tul Wh.ii Ihlt lulw It mrumrtl you have a rurnb Inc .nun J or Imixrfrct hrarlnir, and hn It la ntlrrly clotnt, 1(IU' It Ih. rrtult. and unlraa the Inrlaminatlon can b takrn out and thlt tub rmorrU to lit normal condi tion. h.arliK vlll b d.ttroyrd lor.v.r; nln. raara out of t.n ara cau.rd br I'alarrh. which It nothlRf tut an Inrlamcd condition ot tha niucou. turfac.a. We will zlv One llundrrd Iwllara Cor any cat of lafn. (caud by catarrh) that cannot b cured by llaH'a Catarrh Curt. tlrnd for circular., ft... K. J CIlKNKV A Ca, Toltdo, Ohio. Hold by Uruiil.i.. p Takt Uall't V.rally fill, tor conttlpatlon. Howard 0. Uocers. Lawyer. Notary Public. Over Peninsula lank; 7 to 9 P. M. Suspicion ia defined by the erdict of a western Jury: 'Guilty, with soma little doubt as to whether ho is tho man." VP ! ' ft)) a I a a a a Sc a I L LAUREL LODGE No. 186 I. O. 0. r ST. JOHNS, OHCGON MeU each Monday evonlnif In Odd lrel loa hall at 8:00. A corillal welcome tn all villlliiL' brothers. Harry VimW, Nol.lt fltenit U. M. Neirnr. Vice (trend n, 1. Iliirimiiili., I'ln. rwc. II. 1'. Cl.ilkTitt, St. Johns Gamp No. 7546 Modern Woodmen of America. Vi linnrt ilv solicit tha attend mice of our members nt our next rcKiiInrmectliur. Tluiradny, auk Otii. G. W. Mulim, Consul. Milk and Gream Direct From the Cows I 2 i 2 2 s 2 IHUJV.UUC1J tsuu j J. II. WINDLE, Prop. I f Phone Col, 320 ntltvtrtrl rhllr -I Offices and Rooms $8.00 per month and up PENINSULA NATIONAL BANK BLDG. Building remodeled and rooms modern in every respect including steam heat Best Located Rooms In the City Apply IS. R. MORRIS Peninsula Nutional Hank Notice of Sale Under Ware houseman's Lien Notice is hereby given that Peninsula iron works lias safely kept, atoreil anil warenoiiseii in us mctory, Alia mm nr.ui foril ktreets. St. Johns, Portland, Oregon, 35 Oregon l'ruit Cleaning ami ('.railing machines continuously since January, 191 1, ut the it'tpicst of Oregon l'ruit Cleaner Co., owner or reputed owner ami lawful possessor of said property. That the just ami reasonable charges for the storage of Mid property (rum Jauuarv, iyi-1, to April I. I'JVi, is HMi.w, wiiicii sum, or any tiart ttiereof. has not been paiil. although (uiyiueut has often been ileuiamleil of sanl owner. That Peninsu la Iron Works acquired, and uow has, a warehouseman's lieu on said property for storing saute since January, 1914, which on April 1, 1917, amounted to said sum of S14SG.00. and for storage ac cruing since April 1, 1917, ami it will, on Saturday, August 4, 1917. at 10 o'clock a. in., at its factory, Alta and Bradford streets, St. Johns. Portland, Oregon, sell. to the highest bidder for cash, all said fruit cleaning and grading machines, or so many thereof as may be necessary to mv storage cuarges inereoii to Aprii'i, 9i7. and wilt apply the proceeds of such sale to uie payment oi sain storage charges and the expeusc of said sale. Uuteil July 10, )917. PUNINSUI.A IRON WORKS. Lien Clnitpaut. Howard 0. liocers. Lawyer. Notary Public. Over Peninsula National Bank: 7 to 9 P. M. ) Baa ill ScllSe THE REMARK "I saw this same thing at a price . below your mark at such and such a store over town is rarely heard in our store. This is just as it should be and we expect to keep right on showing bargains obtained at cash prices and giving our customers the benefit; that, too, is as it should be. Our rent is less, our personal expense moderate, our stock turns frequently the only profitable way of merchandising. Your Swimming Suit is in our window, $1.00 to $4.50 . per suit. BONHAM L. E. ROSE Mgr. For a Real zn NORTH BEACH Is the Place to Go Reached by Rail or Steamer ROUND -TR.IP FARES Week-end . . . $3.00 To All SixMonths. . . $4.00 gjf 5'trip Tickets, $ 1 5.00 Points RAIL Tickets and Information at S ,1', & S, Station E!c entli ami Ho t t-Ucf u. Trains leave t.ii . ara.j..iy,J.0Oum. SJIuriljy.. STL'AMLIl-Uvr AintMorth Dock dock 8.00 p.m. daily except burulay. Tickets, rtsmatious. and a "NORTJl DEACWfoldtrat UNION PACIFIC SYSTEM City Ticket Office, Third and Washington; Iiroadu ay JSOO, A-GJS1 Wm. lliMurr.jr, Oturul 'uua.r A(at, fiinltuj . HcCall 1'altrrna WilM No. 77. ltt Nu n 7. tlaoyutber new tlcsieut ..The Pasi Time Billiard Hall., N. I. W1UTK froprletor The Place Where They All Go A Choice Line of Cigars, Tobac co and Soft Drinks WHERK THE CAR STOPS The Values Wc arc giving now arc a pulling power that pro duces daily increase of & CURRIER Toggery Dept. Rest IIOLMES LODGE NO. 101 1 KNICIITS Or PYIHIAS I On Vacation Until Fri day Evening, Sept. 7 v. R. evens, c c. A. CAR&NELSON, K.R, S , r-aS.1. tlsr. IJt W Bl.u il i I Mitt 'Wm W!0& Mill Skirt llcCall rattern No. 7?T. Uaay oilier allractlc DORIC LODGE NO. 132 A. r and A. M. Meets the first nml ttilr.1 Wednesday of each month in Uickner's Hall. Vlsi- tort Vflmtnft asw Vr3 -m iv-v7 J. N. Edlefsen W. M. A, W. 0vU, Secretary,