Falls City news. (Falls City, Or.) 190?-19??, June 30, 1917, Page PAGE 2, Image 2

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1 l l I X n VJ
• •
P A O » 1.
Œljr Italia (£iti| Nruia HOW SHALL WE
KntmS « . •rroaS-.-tan mal', at th» inalafnra
■I Falla City. IVIk Coaaty Orafo«. «P«ar t *
Art of Omfraaa of March A 1ST«.
N fw j # ffk t .
Subar rirtton Rata* Onayaar. *1.00; ai* nnwitba.
M casta: t hraa month« 25casta; «Inala W Y . I età.
AdrertUlng Ratas ; Display, 15 cants an loch ;
Buniness Notioas. 5 cents a H a s . For Sals, Rant,
Exchange. W ant and Pay Entertainment No­
tices. 5 cts. a Una. Card of Thanks 60 cts. Legs
Hotlcat, legal rataa.
Copy for new ada. audchangesahould be acni
t« Tlie News not later than Wednesday.
Off telai Vswspapsr ef Ike City sf Falls Citi
Issi/ED E very S aturday M orning
Headquarters for Candy and Cigar j
Candies, Tobaccos and Cigars, at
L. B. W O N D E R L Y ’S
Passenger Train Schedule
Effective Oct. 4,1914
Salem . . .
Dallas. . .
Falls City.
8 .50
Bl’k Rock
Falls City.
Dallas. . .
Salem . . .
16 |
pm .
I 1T0
pm .
pm .
3 .15
6 .10
6 .40
1 7 .45
A. C. P owers . A gent
tu considering the apportionment of
the extraordinary burden o f taxca lu
a nr times certain actenlldc principles
are detlnltely established
How Taxaa Sac-Id Ba Apportionad.
(1) Tbe burden of twara must be
spread as far aa possible over the
w hole contmuuity an aa lo cause each
individual to share In the sacrlttees ac­
cording <o his ability lo pay and ac­
cording to his share lu the Government
*2) Taxes ou consumption, which are
necessarily home by the community at
large, should tie I minuted as far as pos­
sible on articles o f quasi luxury rather
than on those o f necessity.
tSi Excises should tie Imposed as far
as possible upon coin modi tie* In tbe
hands o f the flnul consumer rather
F iv « Rh«»on, W h y E x c ,,i v , T a x « « at than upon the articles which serve prl
tha Outaat of W a r Ara Disadvantage- martly as raw material for further
aua— Gr«at Britain Exampla Worthy
i4i Taxes upon business should be
af Emulation— How tha Taxaa Should tin post'd as far aa possible u | hmi net
Ba Apportionad.
earnings rather than upon gross re­
ceipts or capital Invested
By E D W IN R. A. S E L IG M A N ,
(5> Taxes upon Income which will
McVIckar Professor o f Political Econ- |
necessarily tie severe should lie both
omy. Columbia University.
On May 23, 1917, the House of Hep differentiated aud graduated. That Is.
resentatives passed an act “ to provide I her,» should be a distinction between 1
revenue to defray war expenses aud earned aud unearned Incomes and there
for other purposes." In the original should be a higher rate upon the larger
bill as presented by tbe Committee of incomes. It Is essential, however, not
Ways aud Meaus. tbe addltioual reve­ to make the Income rate so excessive
as to lead to evasion, administrative
nue to be derived was estimated at SI.
810.420.000. The auiendmeut to tbe In- 1 difficulties. or to tbe more fundauiwotul
come tax. which was tacked ou to the objections which have been urged
bill during the discussion lu the House, above.
(6) The excess protits w hich are due
was expected to yield another S40.000.- I
to tbe war constitute the most obvious
000 or $50,000.000.
aud reasonable source o f revenue dur­
I d discussing the House bill, two |
ing war times. But the principle upon
problems arise
which these war profit taxes are laid
I. How much ahould be raised by
must be equitable in theory and easily
calculable in practice.
II. In what manner should this sum
Th * Proposed Income Tax.
he raised?
The additional Income tax as passed
I. How Much Should Ba Raisad by 1
by tbe House runs up to a rate o f 00
M oney-Saving Subscription Bargain
T tltp h oa t
We do
Job Work
our prices
with others
see lamples.
T he F a l l » C it y N e w s .
N orthw est F
A Constructive Criticism on Ibo
House Revenue Bill.
I ''er cent Thl!* *■ * sutu »"h eard o f In
the history o f civilized society. It must
be remembered that It was only after
the first year o f the war that Great
Britaiu Increased her Income tax to the
maximum o f 34 per cent., and that
even now in the fourth year o f the war
the Income tax does not exceed 42'a
per cent.
It could easily be shown that a tax
with rates on moderate Incomes sub.
stantlally less than In Great Britain,
and on the larger incomes about as
high, would yield only slightly less than
tbe $532.000.000 originally estimated In ,
the House bill.
It Is to be hoped that the Senate will
reduce the total rate on tbe highest In­
comes to 34 per cent, or at most to 40
per cent, and tbat at the same time it
will reduce tbe rate on tbe 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. By imposing excessive rates
now we ere not only endangering the
future, but are inviting all manner of ‘
difficulties which even Great Britain
hxa been able to escape.
The House bill contains other funda­
mental defects which may be summed
up as follow s:
'1 ) It pursues an erroneous principle
In imposing retroactive taxes.
(2 ) It selects an unjust and unwork- [
able criterion for the excess-profits tax.
(3) It proceeds to an unheard-of
height in the income tax.
(4 ) It imposes unwarranted burdens
upon the consumption o f the commu­
(5 ) It Is calculated to throw business
into confusion by levying taxes on crest
receipts instead o f upon commodities.
(6 ) It fails to make a proper use of
stamp taxes.
(7) It follows an unscientific system
In its fiat rate on Imports
(8 ) I t Includes a multiplicity of pet­
ty and unlucrattve taxes, tbe vexatious­
ness of which Is out o f all proportion to
the revenue they produce.
. 1 yea r $1.00
Total value.
How was the" figure o f $1.800.000,000
arrived at? The answer is simple. When
the Secretary o f the Treasury came to
estimate the additional war expenses
for the year 1917-18. he calculated that
they would amount t* some fll.OOt).-
000.000, o f which $3,000.000.000 was to
be allotted to the allies, and $3.000,
000. 000.was to be utilized for the do­
mestic purposes.
Thinking that it
would be a fair proposition to divide
this latter ¡Sun between loans aud
taxes, be concluded that tbe amount
to be raised by taxes was $1.800.000.
There are tw o extreme theories, each
o f which may be dismissed with scant
courtesy. The one Is that all war ex­
penditures should be defrayed by loans,
and tbe other is that all war expendi­
tures should be defrayed by taxes.
Each theory is untenable
It is indeed true tbat the burdens of
the w ar should be borne by tbe pres­
ent rather than the future generation:
but this does not mean that they should
be borne by this year's taxation.
Meeting all w ar expenses by taxation
makes tbe taxpayers in one or two
years bear tbe burden o f benefits tbat
ought to be distributed at least over a
decade within the same generation.
In the second place, when expendi­
tures approach the gigantic sums of
present-day warfare, the tax-only pol­
icy would require more than the total
surplus o f social Income. Were this
absolutely necessary, the ensuing hav­
oc In the economic life o f tbe communi­
ty would have to be endured. But
where the disasters are so great and
at the same time so unnecessary, tbe
tax-only policy may be declared im
Secreta ;- McAdoo had the right In­
stinct and highly commendable cour­
age in deciding tbat a substantial por
tion. at least, o f tbe revenues should
be derived from taxation
But when
be hit upon the plan o f 50-50 per cent.,
that is, o f raising one-half o f all do­
mestic war expenditures by taxes, the
question arises whether he did not go
too far.
The relative proportion of loans to
taxes is after all a purely business
proposition. Not to rely to a large ex­
tent on loans at the outset o f a war is
a mistake.
a r m stea d
I year $1.00
Only $1.50
To Ono Addroso
$2.00 )
IV« « * n i tv«ry out of our tuhtcrlbtr« 1«
l « k l hi.iin .Mat« ftttv*utftgr of
•i rtplivii bnrgnl»»
II will !»•> gi.inl f«.r but «
•l.nrt flint to »tin! your new or rtn tw tl
•ubtrrlplltri *t onot If you nrt tt«*w * i u H-
tt rM»tr lo tlllitr. vrtilX w ill bt t«ltu<1t<l
ou t yttr.
Tht N tw t ba. httn ((»rfuittlt I it*? Making
t rr tu g n n tu l«
FAR'IMTF^M wh»r«t>y bollifiuty bt og »rt4
fur « ibort Hint at only BOi tn lt niort ‘btn Ibt
lag u lir t»r 1 « t of our l « y * r
Comt In tu4
pay up your •ubMirlptlon lor tnoihtr ytnr
50 Cents for Every Subscriber
Tht old rtlltb lt NOK fll W KST FARM
STKAP « 11 bt biggtrr tn«l b tlltr ib tu tv tr
JhU co mi ng . « « .«.it lit «tliior» w ill lU vot«
htlr I hm I effort« lu mnkltig thlt pupur tht
l * « i In the country
Ktch week you’ll it
ctlv t * olttu, w tll ttliit l iMue on bttitr
i t n u l u g , tnnrk til tut. price». profllt, «due«
Mon oltiieiuUlp. home mid a.winl lift
gulnr price «lone, f l oo pc» year.
Both 1 Toar
next month
at once.
That « whal this offer is worth to you. but you muat act
Com e T O D A Y ’
Every Farm er, Business or
Professional Man Should
Use Printed Stationery. . .
Letter Heads, Bill Heads, Statements, Envelopes,
Hand Bills, Posters, Pam phlets, Notes, Receipts,
Checks, Business Cards, Visiting Cards, Butter
W rappers, Etc.
The United States has enteredthe greatest war the world
has ever seen. The part we play may determine the future o f
Europe both politically and socially. Every American man, woman
and child is vitally interested in this war. Some o f us will give
our lives, all o f us must make sacrifices.
“ The World’s Greatest War”
is the title o f a new 32 page at'as just placed on the market. It is
the most comprehensive work of. its kind and is accurate in the
smallest details.
There are 15 pages o f maps in three colors (15x11) covering
minutely the various theatres o f war, and showing all the towns
and villages mentioned in the daily dispatches from the front.
There are pages o f photographs, many o f them made ex ­
pressly for this book, o f persons, places and things about which so
much is said and so little definitely known- Photographs o f zeppe-
lins, submarines, submarine chasers, mines, torpedoes, torpedo
nets, anti air-craft guns, gas masks, giant guns that shoot 2-ton
shelis, German trenches, etc.
There is a complete chronological history o f the war to date,
and the answers to a thousand and one questions on every phase o f
the costliest and bloodiest struggle in the history o f mankind.
Tbe fundamental lines on which tbe
House bill should be modified are sum­
med up herewith:
(1) The amount o f new taxation
should be limited to $1,250,000.000—or
at the outset to $1,500,000.000. To do
Disadvantages of Excessivs T a x «,.
The disadvantages o f excessive taxes more than this would be as unwise as
at the outset o f the war are as follows : it is unnecessary. T o do even this
1. Excessive taxes on consumption would be to do more than has ever
been done by any civilized Govern­
w ill cause popular resentment.
2. Excessive taxes on industry will ment in time o f stress.
disarrange business, damp enthusiasm
(2) Tbe excess profits tax based upon
and restrict the spirit o f enterprise at a sound system ought to yield about
the very time when the opposite is $500,000,000.
(3) Tbe Income-tax schedule ought to
3. Excessive taxes on incomes will de­ be revised with a lowering o f tbe rates
plete the surplus available for invest­ on earned Incomes below $10,000, and
ments and interfere with the placing of with an analogous lowering o f the
the enormous loans which will be neces­ rates on tbe higher Incomes, so as not
Possession o f this book will enable anyone to give exact in­
sary in any event.
to exceed 34 per cent. A careful cal
on subjects on which his friends speak from heresay.
4. Excessive taxes on wealth will culatlon shows tbat an income tax of
It is a valuable addition to any library and contains a wealth of
cause a serious diminution of the In
this kind would yield some $450,000,
comes which are at present largely 000 additional.
facts on the one subject in which everyone is interested at the
drawn upon for the support o f educa­
(4) The tax on whisky and tobacco
present time.
tional and philanthropic enterprises. ought to remain approximately as It Is.
The book itself is printed on the finest grade o f enameled
Moreover, these sources o f support with a yield of about $230,000,000.
would be dried up precisely at the time
These three taxes, together with tbe
paper and is the best that skilled workmanship can produce.
when the need would be greatest.
stamp tax at even the low rate o f the
5- Excsssiva taxation at tha outset of House bill, and with an Improved au­
Falls City Newt one year and Atlas $ 1.30
the wer will reduce the elasticity avail­ tomobile tax, will yield over $1,250,-
able for the increasing demands that 000.000. which la the amount of money
ere eoon to come.
thought desirable.
Great Britain’s Policy.
The above program would be in bar.
Take Great Britain as an example. mony with an approved acientlflc sys­
During the first year of the war she tem. It will do away with almost all
Japan believes that she can
Increased taxes only slightly, in order of the complaints that are being urged accomplish more by keeping her
to keep Industries going at top notch. against the present.
It will refrain
During the second year she raised by from taxing tbe consumption of the soldiers at home making muni­
new taxes only 9 per cent, o f her war poor.
tions than sending them to the
expenditures. During the third year
It will throw a far heavier burden
trenches, Doabtless she is right,
she levied by additional taxes (over upon the rich, but will not go to the
n yw ay its a heap safer.
nd above the pre-war level) only extremes o f confiscation,
slightly more than 17 per cent, o f her vlate Interference with business aud
war expenses.
will keep unimpaired the social pro­
I f we should attempt to do as much ductivity o f tbe community
I f the man who lived to be one-
It will establish a Just balance be­
In the first year o f the war as Great
and three years old, al­
Britain did In the third year It would tween loans and taxes and w ill not
suffice to raise by taxation *1.250,000,- succumb to the danger o f approaching though it had been his habit to
000. If, lu order to be absolutely on either the tax-only policy or the loan- drink eight cups o f coffee a day,
tbe safe side. It seemed advisable to only policy. Above all. It will keep an
had been educated in dietetics, he
Increase the sum to $1,500,000,000, this undisturbed elastic margin, which
- ■t-l-t- H l l h + 4 - H I- l -M -4- H -b 1 H - H -'
should, in our opinion, be tbe maxi­ must be more and more heavily drawn might have died early o f caffein
upon as the war proceeds.
An Invaluable Reference Book for the Home
■ S i
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