GRESHAM
HOW SHALL WE
PAY FOR WAR?
OUTLOOK
TVEM 4A Y,
J l'L Ì
• »17
courtesy
T he one is th a t all w a r e x
p en d itu res should be d efra y e d by loans,
an d th e o th e r is th a t at.' w ar ex p en d i
tu re s should tie d efray ed by taxes.
Eai h th eo ry is u n ten ab le
It is in d e e j tru e th a t th e b u rd en s of
th e w a r should lie borne by th e p re s
ent ra th e r th a n th e fu tu re g en eratio n :
F i» « Reasons W h y E xce ssiv e T e x e s a t
b u t th is d o es n o t m ean th a t they should
th e O u ts e t o f W a r A re O is a d v e n ta g e -
be borne by th is y e a r’s tax atio u .
au a— G re a t B r ita in E x a m p le W o r th y
M eeting all w a r ex p en ses by ta x a tio u
o f E m u la tio n — H o w th e T a x e s S ho uld
m akes th e ta x p a y e rs in one o r tw o
Bs A p p o rtio n e d .
y ears b ear th e b urden o f benefits th a t
ought to be d is trib u te d a t least o v e r a
By EDW IN R. A. SELIGM AN,
d ecad e w ith in th e sam e g -ueration.
G re a t B rita in 's P o lic y ,
M cV tckar P rofesso r of P olitical E co n
In th e seeoud place, w hen ex|>eudl-
l a k e (.r e a l B ritain us an exam ple.
omy. C olum bia U niversity.
tu re s ap p ro ach th e glen
sum g of D u rin g th e first y e a r of t ie w a r she
On May 23, 1917, th e H ouse o f Hep
ta x -o . Ij pel
re se u tu tiv e s passed an act "to provide lev w ould re q u ire m ure th an 'lie to tal increased tax es only slightly, iu o rd er
rev en u e to d efray w ar ex p en ses an d su rp lu s of social iin-i me. W ere this to keep in d u stries going a t top notch
fo r o th e r purposes." In th e o riginal abso lu tely n ecessary , th e en su in g h av D u rin g th e second y e a r sh e raised by 1
bill a s p reaeuted by th e C o m m ittee of oc in tl-e econom ic life of th e co m m u n i new ta x e s only 9 p e r cent, o f her w ar
ex p em litu res. D u rin g th e th ird y ear
W ays a n d M eans, th e ad d itio n al rev e ty w ould have to lie endured.
But
n u e to be derived w as e stim a te d a t $1.- w here th e d is a ste rs a re so g re a t and •h e levied by ad d itio n al tax es (over 1
bill,-420,1100. T he a m en d m en t to th e in at th e sam e tim e so u n n ecessary , th e and above th e p re-w ar level! only
com e tax . w hich w as tack e d on to th e tax-oulv p, ||<-y m ay lie d eclared lin- slig h tly m ore th a n 17 per ceut. of her
w a r expenses
bill d u rin g the discussion in th e H ouse, prai tii aide.
If we should a tte m p t to do as m ush
w as expected to yield a n o th e r $40.000,-
S ecre.ary M cAdoo hud th e rig h t In
In th e first y e a r of th e w ar us G reat
0OO o r >50,000,000.
stin ct and highly com m endable co u r
B ritain did In th e th ird y e a r it would
In discu ssin g th e H ouse bill, tw o age in decid in g th a t a su b s ta n tia l i>or
sutllce to raise by tax atio n $1.250.000,-
problem s arise:
rion. at least, o f th e rev en u es should
I. H ow m uch should be raised by be d e rh e il from tax atio n . But when 0U0. If, in o rd er to be ab so lu tely <fh
th e sufe side. It seem ed ad v isab le to
ta x a tio n ?
he hit U| kiii th e plan o f 541-50 per cent.,
II. In w h at m an n er should th is sum I tlial is. of ra isin g o ne-half of all d o Increase th e sum to $1.500,000,000, th is
should. In o ur opinion, he th e m ax i
be raised ?
m estic w ar ex p e n d itu re s by tax es, th e m um .
I. H o w M u c h S ho uld Be R aised by
question arise s w h eth er lie did n o t go
In co n sid erin g th e ap p o rtio n m en t of
too fur.
T a x a tio n ?
the e x tra o rd in a ry b u rd en o f ta x e s In
H ow w as the (j^'ure of $1.800,000.000 , T h e re la tiv e pro|H irtion of loans to
w ar tim es certain scientific p rinciples
a rriv ed a t? T h e uxiswer is sim ple. When ta x e s is a f te r all a purely bu sin ess
a re definitely estab lisb eil:
th e S ecretary o f th e T re a su ry cam e to proposition. 5,’ot to rely to a larg e e x
H o w T a x e a S ho uld Be A p p o rtio n e d .
e stim a te the ad d itio n al w ar ex p en ses ten t on loans ut th e outset of a w a r is
(Il The b urden ol tiaaea m ust be
fo r th e y e a r 1917-18. he calcu lated th a t a m istake.
sp
read as fa r us possible o ver th e
they w ould am o u n t to sonic $0,000,
D u a d v a n ta g e s o f E xce ssiv e T a x e a .
000,000, of w hich $3.000.000,000 w as to |
1 lie d isad v an tag es o f excessive tax es w hole com m unity so as to c a u se each
be allo tted to the allies, and $3,000,
u t th e outset o f the w ar a re us follow s: individual to s h a le in th e sucrifices ac
AX».»,000 w as to be utilized fo r th e do- j 1. Excessive tax es on consum ption cording to his ability to pay and ac
cording to bis sh a re in tin- G overnm ent.
«nestle purposes
T h in k in g th a t It will cau se p o p u lar resentm ent.
<2i T ax es on consum ption, w hich are
w ould be u fa ir proposition to divide
2. E xcessive tu x es on in d u stry will
th is la tte r sum betw een lo an s an d i d is a rra n g e busiuc-s, dum p en th u siasm n ecessarily h om e by th e com m unity at
tax es, lie concluded th a t the am o u n t - and re strict tin* sp irit o f en te rp rise a t large, should lie im posed us fa r us pos
to be raised by tax es w as $1.8 »»<100.- tin- very tituc when th e opisasite is sible on artii les of q u n si-iu x u ry ra th e r
th au on those of necessity.
000.
needed.
i 3 i E xcises should be Im posed as fa r
T here a re tw o e x trem e theories, each
.1. Excessive tax es on incomes w ill d e
o f w hich m ay be d ism issed w .th si a n t I plete th e su rp lu s a v a ilab le for invest- us possible upon i-om unsllties iu the
b au d s of th e final co n su m er rath e r
th an upon th e a rtic le s w hich serv e pri
uiarlly us raw u iuteriul fo r fu rth e r
production.
<4i T ax es upon b u sin ess should be
im posed as fa r a s p ossible upon net
earn in g s ra th e r th a u u p o n gross re
ceipts o r ca p ita l invested
(5> T ax es upon incom e w hich will
rides upon the waves of
necessarily lie sev ere should be both
prosperity. S tart an account
d ifferen tiated am i g ra d u a te d . T h a t Is
with ns at once. He inde
th ere should tie a d istin ctio n boiiveeii
pendent. A little money
»allied an d uneurm d incom es and there
saved in a system atic way
should be u h ig h er la te tifion th e larger
product's results without in
incom es. It Is e ssen tial, how ever, not
to m ake th e incom e ra le so excessive
convenience. This hank ac
as to lead to evasion a d m in is tra tiv e
cords its patrons perfect
diflicu11it s. o r to Ila- m ore fu n d am en tal
hanking service.
o bjections w hich blive been urged
above.
(C) T h e ex cess profits w hich a re due
G RESH AM . O RE.
to th e w a r co n stitu te th e m ost obvious
li. A. .M ILLER, ( a sliie r
and reaso n ab le so u rce o f rev en u e d u r
iug w ar tim es B ut th e prin cip le upon
w hich th ese w ar p rofit ta x e s a re laid
m ust be e q u ita b le In th eo ry a n d easily
calcu lab le In practice.
The Proposed Incom e Tax.
T he ad d itio n al Incom e tax as passed
by th e H ouse ru n s up to a ra te of 00
p er cent. T hia Is a sum u n h e a rd o f In
th e histo ry o f civ ilised society. It m ust
Rustic, all patterns and grades, dry.
be rem em b ered th a t It w as only uflei
th e first y e a r o f (he w a r th a t G real
All kinds of dry finish lumber ¡yid mouldings.
B ritain Increased h er incom e tax to the
Good supply of flooring 4 and 6 inch, all grades.
m axim um of 34 p er cent., an d th al
even now In th e fo u rth y e a r o f th e wui
Sheeting, common and cull.
th e Incom e ¿ax does not ex ceed 42M
Cedar posts, split and sawed.
p er cent.
It could easily he show n th a t a tax
w ith ra te s on m o d erate Incom es sub
stau tlally less th a n iu G reat B ritain
a n d on th e la rg e r -incom es a b o u t a;
high, w ould i le.'d only slig h tly less th a n
th e $532,00O.(«i o rig in ally e stim a te d in
Phone, Sandy 46.
We DeHver
th e H ouse bill.
Ft is to be hoped th a t th e S en ate will
reduce th e to ta l ra te on th e hig h est In
i-onies to 34 p e r cent, o r a t m ost to 4»
IF YOU HAVE
p er cent, an d th at a t th e sam e tim e It
will reduce th e ra te on th e sm a lle r In
com es d eriv ed from perso n al o r profes
sioual earn in g s
And a n y one
SMITH FORM-A-TRUCK and the
famous 8-in-l farm body covers
every possible use for a truck on
the farm—an exclusive Smith Eorm-a-
, Truck feature.
Simply pull lever and get any one of 8
combinations of farm bodies—stock rack
- hay rack—hog rack -grain—flat rack
— high flare board—flat rack, scoop
board down. Then chiingc from one
type to another in an instant without a
single tod.
A
Fresh C°ws’ Beef of Any Kind
Veal Calves, Hogs, to Sell
or Livestock to Haul
SEE
BAUMAN.
Prop.
SANITARY MEAT MARKET
Main St., Qresham
Goodyear
Tire
Auto Repairing
Acetylene Welding, Brazing
ED. OSBURN
Phone 691
Main St., Gresham
Ekstrom’s Truck Service
SUCCESSORS
TO
' H O SS* T R U C K S E R V IC E
Office with Commercial Delivery Co
229 Pine Street Between F irst and Second
ALL KINDS OF HAULING BETWEEN GRESHAM AND
PORTLAND
I
Phone
TOK
Albert EbtroBH rx^iw./ZST’ a «»?«
I f th » w a r c o n tin u a l w a a h a ll h a va to
depend m o re and m o re upon th e in
co m e ta x . B y im p o s in g excessive ra te s
no w wa a re r o t o n ly e n d a n g e rin g th e
fu tu r e , b u t are in v itin g a ll m a n n e r of
d iffic u ltie s w h ic h even G re a t B r ita in
has been ab le to escape
Conclusion.
T he H ouse bill i-ori’tiins o th e r fu n d a
m ental d efects w hich may be sum med
up as fo llo w s:
( l l It p u rsu es an erro n eo u s principle
iu Im posing re tro a c tiv e taxes.
(2 ) I t selects an u n ju s t uml unw ork
able crite rio n fur th e excess-profits tax.
(3i It proceeds to an u n h eard of
h eight lu th e Income tax.
(4) It fmiMMes u n w a rra n te d burdens
U| kw th e consum ption o f th e com m u
nity.
(5) It Is calcu lated to th row business
Into confusion by levying ta x e s on gros-
riWeipts Instead o f upon couim ixlitles.
(til It fails to m ake a p ro p er use of
stam p taxes.
(7) It follow s an un scien tific sy stem
In Its flat ra te on im ports.
(8 i I t Includes a m u ltip licity o f p e t
ty an d u n lu c ra tlv e tax es, th e vexatloua-
ness o f w hich is o u t o f till prnfiortion to
th e revenue they produce.
a?
«4
VI
hi
I*
• f c
Don’t take your horses out of the field don't d e
lay farm work. Use Sm ith Form a-Truck. Haul
tw u r as much as tw o team s. And at one halt the
c o s t Yet it costs no m ore than a team and
harness $350.
Use the South Form a-Truck for hauling milk—
g ra in - crop®— feed- m anure- lum ber—coal— and
everything else oo the farm.
Save
T im e
W hen you haul crops or milk to town with
horses you m ust leave early.
You get back
late. Your day is wasted.
Sm ith F arm a-T ruck will m ake the sam e trip in
tw o-thirds less time. Save this tim e for profit
able work on the farm.
S a v e 2 0 A cre« a n d $ 3 0 0
Government «1 at M ic a show ih at in a -ingle year four
. M. T ' 1
* * * k * * 1 of 20 * CTC* “ nd < ° * t *441 to feed and
•tabi«
Heading, v eterin aiy. medicine, shoeing, ta re —
coat extra. 1 he Sm ith Form • Truck coats only 1140 a
Faa> aud saves Uua 20 a n ex.
W o n d e r fu l E c o n o m ie s
»
$
ill
_ .V*—
, l>rT *on ®We, exclusive o f driver's wayra.
M IO to 8.000 miles p e r »el of tires 12 to 18 miles per gallon
ot gasoline 12 to U> miles per hour. A nd repair expeuae
practu ally n o t f i l l i g .
.Sm ith r u n » a-Truck costs you absolutely not one penny
wtiik idle
For Q uick D isposal
SANDY FIR LUMBER CO.
s
T w ic e t h e W o r k o f 2 T e a m s
B an k o f G resham
Phone 881
THREE
R
Li
Eight Bodies
in a M in u t e .
A MAN WITH A
BANK ACCOUNT
EH
PAGE
m euts an d in te rfe re w ith th e placing of
th e enorm ous lo an s w hich will 1« neces
sary iu au y event.
4. E xcessiv e tu x es ou w ealth will
cau se a serioua d im in u tio n of th e lu
cw ues w hich a re a t preseu t largely-
d ra w n upou fo r th e sup|>ort of educa
tiouul and p h ilan th ro p ic en terprises.
M oreover, th ese sources o f support
w ould be dried up precisely u t th e tim e
w heu th e need w ould l>e g re atest.
5. Excessive ta x a tio n a t th e o u tset ef
th e w ar w ill reduce th e elasticity a v a il
able for th e increasin g dem ands th a t
•r« to o n to come,
M a d e f o r 6 C ar«
_ FjM- ^ a u h Furni a -T ru c k altacliinrnt and a new or used
herd. M axw ell. Dodge Bio# . Chevrolet. B u s k o rO v e iU u d ,
iiLsaes a fully guaranteed, powerful, at rung, l-ton truck.
Every day you delay using a bm iih Fuuu-a-1 r uck bfi
jm u ta iiu you are loatna muney.
Troutdale Auto Co.
C l. Riker & Son
PROPRIETORS
G re s h a m P h o n e I 8 \ I
T ro u td a le P h o n e M ain 42.
4Í»
e ra
Haying Time or for Harvest
LOOK yoik binder , MOWER, TEDDER, 11AY rake , etc ., over now .
Give ’I« tin- iiuiiii - ot machine with the num ber of broken p a rt; w<- can then either give yon
h pints WHiitct] or give y o n quick service on any repairs not in stock.
Deering Light-Draft Binders, Mowers, Tedders, Rakes
M<( orniick, Osborn, Champion, Adriancc, Milwaukee, Thomas, Binders, Mowers, Ted
<u rs, I lay nukes
Quick service on these machines or repairs
‘ LOVER LEAK OR PLYMOUTH BINDER TWINE
Phone Office 544
HESSEL’S FARM MACHINERY
Residence Phone 6x2
( jr e s e ia m , O regon
BKUXVti
-,ie tax of
th is kind w ould yb-1,1 som e $45U.(»si.
000 ad d itio n al
ill Tlie tax on w b lsk i uml tobaceo
ought to rem ain ap p ro x im ately as If Is.
witti h yield ot a lsiu t $2F»0<< Mi.lssi
T h e se th re e tax es, to g eth er w ith tile
stam p lax at even tin- low ra te of the
H ouse bill, a n d w ith an Im p ro ied uu
tom ublle ta x . will yield over $1,250.
<|!»MSSI Willi h Is file uni ent of money
th o u g h t desirable
T h e above p rogram would be In h ar
mony w ith an approved scientific sya
tem . It will do aw ay w ith alm ost all
of the co m p lain ts th a t a re lieltig urged
a g a in st th e present.
It will refrain
from fax in g th e consum ption of th e
( illa tio n a llo w s (b u t an ln< "
Emery’s Truck Service
BETW EEN
PORTLAND
AND
G RESH AM
Co., 22(1 A a h H l,
P h o n e B ro a d w a y an.-» I
O ffic e w i t i l P io n e e r A u t o T r u c k
Furniture Moving and Farmers’ Hauling a Specialty
B- W. JBKKBY, Prop.
Res Phone 173
Gresham, Orc.
poor.
It Will throw a fa r h eavier burden
T h e fu n d a m e n ta l lines on w hich th e
upon th e rich, but will not go to th e
HeUMe bill should l»e m odified a re sum
e x trem es of confiscation
It will ob
m ed up herew ith :
M en’s H igh C ut
* 5 . (Hi io$H..vt
(ll T h e am o u n t of new ta x a tio n viate In terferen ce w ith business an d
1« just the diet you
M en ’s W o rk S h o es $:«..*>(! to » 5 (Ml
should be lim ited to $ 1.250.(»»»(»»>—o r [ will keep unim paired the- scs-ial pro
n eed h u t lie s u r e I t Is
M en’s llri-sa S hoes $3.541 to IMI.IMI
a t th e o u tset to $1,500,000,0(10. T o do , d u ctiv ity o f tlie com m unlty
•Men’s E lk S kin S hoes $ 2 .5 « to » 3
It
Will
e
sta
b
lish
a
Just
bnlHine
lie
m ore th a n th is w onhl lie as u n w ise as
M en’s T e n n is S hoes
t»<i
It is u n n ecessary
T o do even th is tw een loans an d taxe-i and will not
B uys’ T e n n is S hoes
.«5
B oys' S hoes
$3.(M* to $ 3 .2 5
would lie to do m ere th a n h as av er em -cunb to t be d a n g e r of approaching
e ith e r tin- t- ' only | ollcv or th e loan
E a t a p la te a d ay a t
been done by an y civilised (¡overt
Shoe
Repairing
a Specialty
onl- i "
m en t In tim e <>f stress
’ lo v e all. It will keep an
(21 T h e excess profits tax based upon undls i
1 !c margin, w hich
GRESHAM SHOE SHOP
B tlT ’S (ONftCTIONERY
a sound sy stem o u g h t to yield ab o u t mus» •• t > ■nd ii'ore heavily d raw n
CARL DAHL
noon i t* -- - •<r pr<s eeda
$5(JO.0W>,aM!.
(3i T h e Incom e tax sch ed u le o u g h t to ,
T a ilo r in g
F o r in s u ra n c e ; a u to m o b ile s, fire,
be rev ised w ith a lo w erin g o f th e ra le s
Safiey First:-—Insure th a t a u to
life
o
r
a
c
c
id
e
n
t,
c
a
ll
Jo
h
n
B
row
n,
on e arn ed liu o m e s below $10,000, an d
w ith Jo h n B row n b efo re you hav e
tf
e n t, h a v e It sto le n o r b u rn e d .
w ith an an alo g o u s low ering o f th e I phone $13.
For
m en
and
w om en —cle a n in g , a P n h o a n c e c id 513.
tf
ra te s on tfee h ig h er Incom es so as not
p re s s in g a n d re p a ir in g d o n e well
m exceed 34 p er cent
A careful cal
R ead th e W a n t Ada.
P e te r l^ e n a rd . P o w ell s tr e e t.
B a rg a in s in th e W ant Ads.
A Big Ice Cream Lunch
Weatherly Ice Cream
SH O ES