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Show I COMMUNICA TIONS I: State Income Tax. Salt Lake, January 27, 1917. Editor Tribune In offering these views of the proposed slate income tax, now under consideration by our legislature, the writer does so as a federal Income taxpayer and a taxpayer of Utah, and all of whose interests are in the state. In addition, all his plans and business projects are in the state and look toward the industrial and agricultural development of the state, as do those of some thousands of other business men ot this and surrounding communities whose businesses are individual, legitimate and limited to local capital. The proposed state income tax would tax all married men with incomes of more than $-1000 a vear. and all single men with incomes of more .than1 $3000 a year a minimum of 2 per cent per annum. No doubt there is a need for a federal income tax, for the purpose of raising revenue for the business of the national government, and this need becomes more and more evident as the nation becomes a-nation a-nation of exporters and less and less a nation of importers. There is a limit to which even luxuries can be taxed when their importation ceases- The federal government then has only the internal revenue, which is also practically limited lim-ited to a tariff on luxuries, and the income in-come tax. , The federal income tax falls on the business and professional man of brains and industry; Already the nation's lawmakers law-makers propose an additional income tax for the support of national institutions. I refer to the proposed tax on excessive profits. This measure provides that "all firms and co-partnerships engaged in business- will be required to pay a tax on excess profits above a return of S per cent on the investment." That is, all profits above 8 per cent will bear a tax of 8 per cent per annum on the excess. And now come the lawmakers of the state of Utah with a plan to increase this burden by adding 2 per cent to the income tax of the man whose name spells "work." and if possible make of him a modern Atlas, placing on his shoulders the burden of government and state taxes to relieve the small businesses and the "poor farmer." This, coupled with the proposed national na-tional law. will make a minimum tax of 3-i per cent per annum on incomes from . corporate associations and individual incomes in-comes above ?4000. What business or association is there which can remain in business with such penalties attached? What will become of the business and professional men and industrial corporations corpora-tions if these measures become laws. If there is a state in the union where en-ergvvand en-ergvvand industry, coupled with capital, are not thus foolishly and unjustly discriminated dis-criminated against, these men on whose efforts rest the proper and necessary development de-velopment of this commonwealth will in great numbers take their leave posthaste post-haste and seek those fields for their endeavor en-deavor where industry is not penalized, for they are working for a competence and an inheritance for their children. As a concrete example of what this means to the average business man. the following is offered. In order to have an income of SS000 annually he must have a capital of $r0.000, earning 10 per cent on the investment. The following is a summary of national and state taxes: (1 Those actually paid now under existing ex-isting laws; (2 those with the proposed state income tax added, and (3) the total with the proposed federal tax on excess profits above S per cent earned annually: (1) Federal income tax $-0.00 State corporation license li-cense tax 2o.00 State, county and school taxes. with home valued at 5000 (IS mills) 90.00 $135.00 Per cent of income paid in taxes (2) Proposed state income tax added 20.00 Total $155.00 Per cent of income paid in taxes 3.1 J (3) Excess profit tax now proposed by federal government S.on Grand total $163.00 Per cent of income paid in taxes 3'i Compare this with the taxes -of the ordinary or-dinary fanner or small trader with an assessed valuation of $20. "00, on whmh j he pays a tax of IS mills on the dollar. 'the rate of which is practically one-half 'what the business man pays. I In the case of the professional man j whose income amounts to $o0i"K' and whose stock In trade consists essentially of bis educa lion and training, and w ho must save from his annual income all that he leaves his family ;ttni not a stock i of goods or farm ami cattle w hen he j dies, the injustice ds all t he more ap-pa ap-pa rent. In the case of the foreign or out-of-state corporation doing business within this state, the example cited above has equal weight. The capital invested in , the industries here comes from individuals individu-als who desire to invesi their earnings in paying properties. What chance is j there for securing the much-needed out- j !"i--.-'i lii'.v v.'iip!) ii.o:e are otlier s:;t:e.- f vi,iii!y linsevtioiK-d ludirJ: capita.:. , o jr:--ns are not 1 :i.pot-i. .o ! :;! ;is 1 -an it-am i-.ere is v.i ar:oi:r j in l.:e i;iM..n imposing sui a tax a iid t 'u handu. up n: p. Ivitimaie dcvcl-u, dcvcl-u, t. i Now !.-r us t a ov. o.'.r framers of law to to.-.k r;:is n.aUt-r s ; ut ;-ly ::i the face ui!d anahze alt i's .-r!t"-ts.' 'fids' measure meas-ure will, upon application, be discriminatory discrimi-natory iri favor the small farmer, the smail siore! and the home workshop. Tit : uk yu'j lh;i r thc-se law s a re not dis-'riminato'-y asaint the lire blood of ot:r :-';f and nar:.iri and in favor of small i-aiers a."'d s'r.a.l tarme;-? And for what ' p'-rxose a:o thv.v fium-d'.' To relieve tho . fail Lire farmer, the faiiure manufacturer. : and the failure tradesman, the wage l-arner- and i..e home ouner who pay but ! a sniall part in proportion to the benefits bene-fits of govf-rnint-ni derived. And at what a cost is the tax burden of the poor man relieved ! i We now come to the subject of what I is a just and eoui table basis of taxation taxa-tion for state and national government revenue. Such taxes can only be just and equitable when they are property taxes based upon a proper valuation of all profit-producing property. Any other basis for taes is inequitable and' inimical inimi-cal to economic development. Tn conclusion, v.-hat should the people of this nation and state, who really have the common good and welfare of all of t he people of the country at heart, de- maud of their legislative representatives, I and what should these lawmakers do to 'preserve the foundations of economic freedom from dest rue live radicalism? First They should vote against any form of state income taxes and all other forms of special taxes where special advantages ad-vantages are not had at state expense; and protest vigorously against further special legislation aimed at business by the national government. Second They should enact laws that will require and secure uniformity of valuation on all classes of property as a basis for taxation. Third And, if necessary, for the production pro-duction of revenues commensurate with .the dignity of our state, raise the rates of taxation. CHARLES' F. BROWN. |