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"THE'RICH MAN'S WAR'
A HATEFUL CALUMNY"
American Business Men Ready to
Make Sacrifices With
TAXES HERE AND ABROAD.
American Taxation the Most Demo
cratic ki th? World.
By OTTO H. KAHN.
Nothing is plainer than that busi
ness and business men had everything
to gain by preserving the conditions
which existed during the two and a
half years prior to April, 1917, under
?which many of them made very large
profits by furnishing supplies, provi
sions and financial aid to the allied
nations. Taxes were light, and this
country was rapidly becoming the
great economic reservoir of the world.
Nothing is plainer than that any sane
business man in this country must have
foreseen that, if America entered the
war, these profits would be immensely
reduced and some of them cut off en
tirely, because our government would
step in" and take charge ; that It would
cut prices right and left, as, In fact, It
has done ; that enormous burdens of '
taxation would have to be Imposed, the
bulk of which would naturally be borne
by the well-to-do ; In short, that the un
precedented golden flow Into the cof
ifers of business wns bound to stop with
our Joining the war, or, at any rate, to
be much diminished.
But it ls said che big financiers of
?New York were afraid that the money
loaned by them to the allied nations
might be lost if these nations were de
feated, and therefore they maneuvered
to get America Into the war in order to
save their Investments,
-j Proof That the Charge Is Absurd.
1 A moment's reflection will shew -the !
ntter absurdity of that charge. Let us
assume, for argument's sake, that the
allies had been defeated. Let us make
the wildly improbable assumption that
'they had defaulted for the time being
upon these foreign debts, the greater
part of which, by the way, Is secured
by the deposits of collateral in the
shape of American railroad bonds and
stocks and of bonds of neutral coun
tries, aggregating more than sufficient
?in value to cover these debts. Let us
assume thafr the entire amount of al
lied bonds placed 4P-America had been
held by rich men in New York and the
east instead of being distributed, as it ?
ls, throughout the eountr.v.
? Is it not perfectly manifest that a
single year's American war taxation and
reduction of profits would take out of
the pockets of such assumed holders ? j
vastly greater sum than any possible;
'loss they could have suffered by a de
fault on their allied bonds, not to men
tion the heavy taxation which Is bound
to follow the war for years to come
and the shrinkage of fortunes through
the decline of all American securities
In consequence of our entrance into the '
4/ ^ot only ls the "rich man's war" an
absurd myth; the charge is a hateful
Business men, great or small, are no
different from other Americans, and
we reject the thought that any Ameri
can, rich or poor, would be capable of j
the hideous and dastardly plot to
bring upon his country the sorrows
and sufferings of war In order to en
rich himself. Business men are bound j
to be exceedingly heavy financia! losers
through America's entrance into the'
war. Every element of self-interest j
should have caused them to use their ;
utmost efforts to preserve America's
neutrality, from which they drew so !
much profit during the two and a half j
years before April, 1917. Every con
sideratlon of personal advantage com
manded men of affairs to stand with j
and support the agitation of the "peace- j
at-any-prlce" party. They spurned ?
such Ignoble' reasoning ; they rejected j
that affiliation; they stood for war:
when lt was no longer possible, with i
safety and honor, to maintain peace,
because they are patriotic citizens j
first and business men afterwards.
Our income Tax and Taxes Abroad, j
(1.) The largest incomes are taxed
far more heavily here than anywhere
else in the world.
The maximum rate of Income taxa
tion here Is 67 per cerit. In England
lt Is 42% per cent. Ours Is therefore
50 per cent, higher than England's, and
the rate In England ls the highest pre
vailing anywhere In Europe. And In
addition to the federal tax we must
bear in mind our state and municipal
(2.) Moderate and small incomes, on
the other hand, are subject to a far
smaller rate of taxation here than In
In America incomes of married mei
j np to $2,000 are not subject to an:
; federal income tax at all.
In England the income tnx is:
4M per cent, on $1,000
j (These are the rates If the income ii
derived from salaries or wages ; the}
are still higher if the income is d?riv?e
from rents or investments.)
The English scale of taxation on In
comes of, say, $3,000, $5,000. $10,00(
and $15,000 respectively averages as
follows as compared to the American
rates for married men:
Income tax In In
rate on England. America
$3.000 14 per cent. 2-3 of 1 p. c
5.000 16 per cent. 1% P- c.
10.000 20 per cent. 3 Vs p. c
15,000 25 per cent. 6 p. c
(If we add the so called "occupa
I tlonal" tax our total taxation on In
' comes of $10,000 ls 6% per cent and on
j Incomes of $15,000 9% per cent.)
1 In other words, our income taxation
[ is more democratic than that of any
' other country in that the largest in
, comes are taxed much more heavily
i and the small and moderate Incomes
; much more lightly than anywhere else
and Incomes up to $2,000 for married
men not taxed at all.
(3.) It ts true, on the other hand,
that on very large Incomes-as distin
guished from the largest Incomes-our
income tax ls somewhat lower than the
English tax, but the difference by which
our tax Is lower than the English tax
ls Incomparably more pronounced In
the case of small and moderate Incomes
than of large incomes.
The "Excess Profits" Tax Here and
Moreover, if we add to our income
tax our so called "excess profit tax,"
which ls merely an additional income
tax on earnings derived from business,
we shall find that the total tax to which
rich men are subject is in the great
majority of cases heavier here than in
England or anywhere else.
(4.) it Is iik?wise true that the Eng
lish war excess profit tax is 80 per cent
(less various offsets and allowances),
whilst our so called excess profit tax
ranges from 20 per cent to 60 per
But It Is entirely misleading to base
a conclusion as to the relative heavi
ness of the American and British tax
merety on a comparison of the rates,
because the English tax is assessed on
a wholly different basis from the Amer
The American excess profit law (so
called) taxes all profits derived from
business over and above a certain
moderate percentage, regardless of
whether or not such profits are the
result of war conditions. The Ameri
can tax is a general tax on income de
rived from business in addition to
the regular Vac?me tax. The Eng
lish tax applies only to excess war
profits-that is, only to the sum by
which profits In the war years exceed
the profits in the three years preced
ing the war, which in England were
years of great prosperity. In other
words, the English tax is nominally
higher than ours, but it applies only to
war profits. The normal profits of busi
ness-1. e., the profus which business
used to make In peace time-are ex
empted in England. There, only the
excess over peace profits is taxed. Our
tax, on the contrary, applies to all
profits over and above a very moderate
rat? on the money Invested In busi
ness. ' ,,.*> -a ?
We Tax Normal Profits, They Tax Only
In short, our lawmakers have de
creed that normal business profits are
taxed here much more heavily than in
England, while direct war profits are
??a^cd less heavily.
You will agree with me In question
ing both the logic and the justice of
that method. It would seem that it
would be both fairer and wiser and
more in accord with public sentiment
if the tax on business in general were
decreased and, on the other hand, an
increased tax were imposed on specific
(5?) Our federal Inheritance tax Is
far higher than it is in England or any
where else. The maximum rate here
on direct descendants ls 27% per cent,
as against 20 per cent. In England. In
addition to that, we have state inher
itance taxes which do not exist in Eng
(6.) Of her total actual war expen
ditures (exclusive of loans to her al
lies and Interest on war loans) Eng
land has raised less than 15 per cent
by taxation (France and Germany far
less), while America is about to raise
by taxation approximately 28 per cent,
of her total war requirements (exclu
sive of loans to the allied nations and
of the amount to be invested In mer
cantile ships, which, being a produc
tive investment cannot properly be
classed among war expenditures).
We men of business are ready and
willing to be taxed in this emergency
! to the very limit of our ability and to
I make contributions to war relief work
' and other good causes without stint,
j The fact Is that, generally speaking,
capital engaged In business ls now
being taxed in America more heavily
than anywhere else In the world. We
are not complaining about this; we do
not say that It may not become neces
sary to impose still further toxes; we
are not whimpering and squealing and
agitating, but-we do want the people
to know what are the present facts,
j and we ask them not to give heed to
tho demagogue who would make them
believe that we are escaping our share
of the common burden.
Rural Carrier Examination.
The United States Civil Service
Commission bas announced an ex
amination for the County of Edge
field, S. C., to be held at Trenton
on April 13, 1018, to fill the posi
tion at Johnston and vacancies that
may later occur on rural routes
from other post ofiices in the above
mentioned county. The examination
will be open only to male citizens
who are actually domiciled in the
territory of a post office in the coun
ty and who meet the ether require
ments set forth in Form No. 1977.
This form and application blanks
may be obtained from the offices
mentioned above or from the United
States Civil Service Commission at
Washington, D; C. Applications
should be forwarded to the Com
mission at Washington at the ear
liest practicable date.
T?e Union meeting of the second
division, Edgefield Baptist Associ
ation, will be held at Horn's creek
church on Saturday and Sunday,
March 30th and 31st. A program
has been arranged, as follows:
Saturday morning, 10 o'clock,
devotional service, led by the mod
1st, How may the churches more
truly obey our Lord's command in
Matthew, 9:37-58? Rev. P. B.
Lanham and C. C. Junes.
2nd, Are not we at present en
joying unusual material prosperity,
and doas not this call for larger
giving on our part for the work
of the Master's Kingdom? Rev. J.
E. Jackson, and W. J. Gaines.
Recess for dinner.
3rd, How may the laymen in our
churches be led out into larger
fields of service? H. E. Quarles and
T. M. Adams.
4th, How may we secure better
attendance upon, and derive greater
benefits from our union meetings?
J. D. Hughey aud.S. B. Mays.
5th, How may our churches ex- I
ercise closer and more helpful and ?
friendly watebcare over their mem
bers than they now do? Rev. J. A.
Gaines and R. A. Wash.
Sunday morning, 10 o'clock, Sun- |
day school mass meeting. Address
on the lesson for the day by Rev.
J. E. Jackson. ;
Missionary sermon by Rev. J.
Recess for dinner.
Sunday afternoon, sermon by
Rev. P. B. Lanham. -J
The union meeting of the first di
vision of the Edgefield Baptist As
sociation will be held at Stevens
Creek church Saturday and Sunday,
March 30 and 31. The programme
is as follows:
11:00-Devotional service by the
11:45-1st Query: What should
oe the attitude of the church toward
new members? F. P. Bush, J. K.
Allen and Rev. H. B. White.
2:30-2d Query: Do the pastors
Df the several churches show the
proper attitude toward the union
meetings? Rev. II. B. White, Rev.
P. B. Lanham and Rev. C. G.
3:00-3rd Query: How can the
church best reach non-attending
members or Sunday school and
uh arch? W. B. Cogburn, John
Witt and J. L. Minis.
3:30-4th Querj : Aie we as
Christians doing our duty toward
the world war? O. Sheppard and
Dr. E. P. J?aes.
10:00- Sunday school.
11:00-Missionary sermon by Dr.
E. P. Jones; Rev. P. B. Lanham,
Sunday Afternoon-Addresses by
A. S. Tompkins and others.
M. A. Watson,
Notice to Stock
My Jack will make the season at
Wm. Allen Mobley's farm, west-end
of Edisto street, Johnston, S. 0.
Service fee ?15.00 insuring mare to
get with foal. Five dollars paya
ble when mare is bred, and the bal
ance when colt is foaled. Notes or
contracts for deferred payments
must be given. Not liable should
B. T. Boatwright
Phone No. 12-7 W
To Prevent Blood Poisoning
spply at once the wonderful old reliable- DR.
PORTER'S ANTISEPTIC HEALING Oil,, a sur
gical dressine that relieves pain and h gals a:
ihe same time. Not a liniment 25c. sf^KfiF
We are making a very low price on the celebrated
FAIRBANKS-MORSE Oil Engines.
1? H. P. at . 9 48.50
3 H. P. at . $ 89.00
G H. P. at . $156.00
These prices are f. o. b. factory with magneto built in
engine. Do not have to worry with batteries. Kero
sene oil is cheaper than gasoline, which affords the
cheapest power obtainable.
COME IN TO SEE US
STEWART & KERNAGHAN
Modern Grist Mill.
Bring your corn to my mill and
have it ground into the best quality
of'hominy or meal. Best attention
given to every patron any hour of
the day. Bring alone: your corn
when you come to Edgefield for
J. D. Kemp.
My plaee in South Edgetield con
taining 12 acres of land, dwelling,
store, shop and barn, 3 tenant
houses, 2 wells of water, pecan
grove and other improvements.
E. W. SAMUEL/
Lost or Strayed-One red year
ling,left ear cut off. Strayed from
my farm about the 1st of January.
S. VV. Miller, Edgifield, S. C R.
F. D. 2. 2-27-4t.
KISS'S NEW LIFE PILLS
Th? Pills That Do Cure
earing Pivot Axle
( International No. 4 )
the greatest labor-saving implement ever offered
H the farmers, regardless of price,
At last a practical cultivator-one that will bring jg
results without any doubt
Car load of these cultivators now en route.
H References-Quite a number of Edgefield county
Write, phone or come to see
TRENTON FERTILIZER CO.
Trenton, South Carolina |