DAKOTA COUNTY HERALD; DAKOTA CITY NEBRASKA..
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rihliLuhiiii.iliijyiiiiiilUuiiiiili 'ilili'f!' Imi Jilliillili WUillil! :..' m,hL ,m 4M Pi UHWClii .. , ,!! 1,'Yiin : " 4: i, '
Triggs' New Meat Market
and Restaurant
I have re-opened my Meat Murket in the uev
location the Beermann building, which I
have remodeled and fitted in first-class shape.
Besides a full line of the best Meat of all kinds
I have added a line of Canned Ifruits and
Vegetables, Canned lfish, Confectionery, To
bacco and Cigars. '
Everything New, Clean
and Up-to-Date
WM. TRIGGS, DSs?F
,'JJL;lnhrmllfmilIlJttl!HfJ.Hfljlil!tHl!jjj;Nliil)flHlHlHtJIJtjlIil!llljfJl jJi'ijiifiiM'ii liipiiH'iiirnMiittiiimiiiimmjHNJijiuiiifiiiinirm'iiniiiHii!''1"; uiu-'unitjiiiiiunumirlH
Don't Be ac
Transportation
Slacker
The country needs the use of cars.
Uvery hour you delay in loading or unloading'
freight, deprives someone of service.
Uncle Sam will soon need freight equipment
and will get it.
By quick work in handling freight the equipment
lan go 'round, your business can betaken care of.
DELAYS AT THIS TIMK, IN LOADING OR
UNLOADING FREIGHT, IS A SERIOUS
MATTER DO YOUR SHARE AND THE
TRAFFIC PROBLEM WILL BE SOLVED.
A.W. TRRNHOLH
Vice-J'ipb. mid Oeti'I MnniiKcr
ST. I'AUI,. MINN.
II. M. I'll ARC B
(iciiernl Tntlllu Mummer
ST. I'AUL, MINN.
Chicago, St. Paul, Minneapolis & Omaha Ry.
HOW SHALL WE
PAY FOR THE WAR?
A Constructive Criticism on the
House Reyenue Bill,
LOANS BETTER THAN TAXES
Sturges Bros, Have Moved
to 315 Pearl Street
where we will be glad to see all our old paLons,
and we hope, many new ones. Tins move is nec
essary, as the building we now have is too small
for our growing business.
S'tarfges
Old Location, 411 Pearl St.
Sioux City, Iowa
Pure Bred
Perc heron
Stallions
Captain 90975
Wallace 121599
CAPTAIN foaled May 1, 1912, color black, is a large,
powerful horse, known as a jure foal getter.
WALLACE foaled April 10, 1915, color dark dapple
gray. Winner of First Prize for 1 year old at Oakland,
Ncbr., in 191(5. Wallace is a very promising colt, stands
10 hands high, weighs 1025 lbs at 23 months old.
These horses arc both inspected and guaranteed sound
and in perfect breeding condition by the Live Stock San
itary Board of Nebraska.
Terms S15 to insure mare in foal, $20 for colt 9 days
old. Due care will be taken to prevent accidents, but at
mare owner's risk.
Both these horses will stand at my barn in Hubbard,
Nebr., during th? season of 1917.
Louis Bogg
Owner and Attendant
Hubbard, Nebr.
Flvo Reasons Why Exceaiiva Taxes at
the Outset of War Are Disadvantage
ous Great Britain Example Worthy
of Emulation How the Taxes Should
Be Apportioned.
By EDWIN R. A. SELIQMAN,
AlcVlcknr Professor of Political Econ
omy, Columbia University.
On May 23, 1017, the House or Itcp
rescntnllves piiHsed un net "to provide
revenue to defray wnr expenses and
for other purposes." In the original
bill as presented by the Committee of
Ways und Menus, the additional reve
nue to be derived was estimated at $1,.
810,4120,000. The amendment to the In
come tax, which was tacked on to the
bill during the discussion In the House,
was expected to yield another $40,000.
000 or $.-0,000,000.
In discussing the House bill, two
problems arise:
I. How much should be raised by
taxutlon?
II. In what manner should tills sum
be raised?
I. How Much Should Be Raised by
Taxation?
How was the figure of $1,800,000,000
nrrlved at? The answer is simple. When
the Secretory of tho Treasury came to
estimate the additional war expenses
for tho year 1017-18, ho calculated that
they would amount to some $0,000,
000,000, of which $3,000,000,000 wus to'
bo allotted to the allies, and $3,000,
000,000 was to be utilized for tho do
mestic purposes. Thinking that It
would bo a fair proposition to dlvldo
this Hitter sum between loatiB and
taxes, ho concluded that the amount
to bo raised by taxes was $1,800,000.
000. There mo two extreme theories, each
of which may be dismissed with scant
courtesy. Tho one is that all war ex
penditures should bo defrayed by loans,
and the other is that all war expendi
tures should bo defrayed by taxes.
Each theory Is untenable.
It Is Indeed true that tho burdens of
tho war should bo borno by the pres
ent rather than the future generation;
but this does not mean that they should
bo borne by this year's taxation.
Meeting all war expenses by taxation
makes the taxpayers In one or two
years bear tho burden of beneuts that
pught to bo distributed at least over a
decado within the same generation.
In tho second place, when expendi
tures approach tho gigantic sums of
present-day warfare, tho tnx-ouly pol
icy would require more than tho total
surplus of social Income. "Wcro this
absolutely necessary, the ensuing hav
oc In tho economic life of tho communi
ty would have to bo endured. Rut
where tho disasters aro bo great and
nt tho same tlmo so unnecessary, the
tnx-only policy may bo declared Im
practicable. Secretary McAiloo had tho right ln
stluct and highly cominendublo cour
ogo In deciding that n substantial por
tion, nt least, of tho revenues Bbould
he derived from taxation. But when
he lilt upon the plan of C0-C0 per cent,
that Is, of raising one-half of all do
uiestlo war expenditures by taxes, tho
question arises whether ho did not go
too far.
The relatlvo proportion of loans to
taxes is after all a purely business
proposition. Not to rely to a largo ex
tent on loans nt tho outset of a war is
a mistake.
Disadvantages of Excessive Taxes.
Tho disadvantages of excessive taxes
nt tho outset of thu war are as follows:
1. Excessivo taxes on consumption
will causo popular resentment.
2. Excessivo taxes on Industry will
disarrange business, damp enthusiasm
and restrict tho spirit of enterprise nt
tho very tlmo when the opposite Is
needed.
3. Excessive taxes on Incomes will de
plete tho surplus available for invest
ments and Interfere with the placing of
the enormous lonns which will bo neces
sary In any vent.
4. Excessivo taxes on wealth will
causo a serious diminution of tho In
comes which aro at present largely
drawn upon for tho support of educa
tional and philanthropic enterprises.
Moreover, theso sources of support
would bo dried up precisely at tlio time
when tho need would bo greatest.
5. Excessive taxation at the outset of
(he war will reduce the elasticity avail
able for the increasing demands that
aro soon to come.
Groat Britain's Policy.
Tako Great Britain as un cxumyle.
During tho tlrst year of tho war alio
Increased taxes only slightly, In order
to keep Industries going nt top notch.
During the second year sho raised by
new tuxes only 0 per cent, of her war
expenditures. During tho third year
sho levied by additional taxes (over
and above tho pre-war level) only
slightly more than 17 per cent, of her
war expenses.
If wo should attempt to do as much
In tho tlrst year of tho war us Great
Hiitnlu did in tho third year It would
sutlke to raise by taxation $1,250,000,.
000. If. in order to bo absolutely on
the safe side, it seemed advisable to
increase the sum to $1,500,000,000, this
should, in our opinion, be the maximum.
In considering tho apportionment of
the extraordlnnry burden, of taxes in
war times certain scientific principles
are definitely established:
How Taxes Shoufd Bo Apportioned.
(1) Tho kurden of taxes must be
spread as far as possible over the
wholo community so as to cnuVe each
Individual to sharo In tho sacrifices ac
cording to his ability to pay, and uc
cording to his share In tho. Government.
(2) Taxes on consumption, which are
necessarily borne by the community at
large, should bo Imposed as far'ns pos
sible on articles of quasl-luxury rather
than on those of necessity.
(3) Excises should bo imposed as far
as possible upon commodities In the
hands of tfco final consumer . rather
than upon tho articles which servo pri.
marlly as raw material for .further
production.
(4) Taxes upon business should bo
imposed as fur as possible upon net
earnings rather than upon . gross re
ceipts or capital invested.
(5) Taxes upon lncomo which will
necessarily be severe Ehould bo both
differentiated and graduated. That Is,
there should be a distinction between
earned and unearned Incomes and there
should bo n hlghoriatc upon tho larger
Incomes. It Is essential, .however, not
to mako tho lncomo rato so excessivo
as to lead to evasion, administrative
difficulties, or to the mora fundamental
objections which have been urged
above.
(0) Tho excess profits which aro due
to the war constitute tho most obvious
nnd reasonable source of revenue dur
ing war times. But the principle upon
which these war-profit taxes are laid
must be equitable In theory and easily
calculable in practice.
The Proposed .Income Tax.
The additional income tax as passed
by the nouso runs up to a rate of CO
per cent This is a sum unheard of in
tho history of civilized society. It must
bo remembered that it was only after
tho first year of the war that Great
Britain Increased her income tax to the
maximum of 34 per cent, and that
.even now In tlio fourth year of tho war
tho income tax does not exceed 42
per cent
It could easily bo shown that a tax
with rates on moderate incomes sub
stantially less than in Great Britain,
and on tho larger incomes about as
high, would yield only slightly less than
the $532,000,000 originally estimated in
tho Houso bill.
It is to bo hoped that the Senate will
reduco the total rate on the highest in
comes to 34 per cent or at most to 40
per cent, nnd that at the same tlmo it
will reduce the rato on the smaller in
comes derived from personal or profes
sional earnings.
If the war continues we shall have to
depend moro and more upon the In
come tax. By imposing excessive rates
now we are not only endangering the
future, but are inviting all manner of
difficulties which even Great Britain
hat been able to escape.
Conclusion.
The Houso bill contains other funda
mental defects which may be summed
up as follows :
(1) It pursues an erroneous principle
In imposing retroactive taxes.
(2) It selects an unjust and unwork
able criterion for tho excess-profits tax.
(3) It proceeds to an unheard-of
height in tho lncomo tax.
(4) It imposes unwarranted burdens
upon tho consumption of Jtho commu
nity. (5) It 1b calculated to throw business
Into confusion by levying taxes on gross
receipts Instead of upon commodities.
(0) It fails to make a proper use of
stamp taxes.
(7) It follows an unscientific system
In its flat rate on imports.,
(8) Jt includes a multiplicity of pet
ty and unlucratlvo taxes, $ho,vexatouB
ness of which is out of all proportion to
tho revenue they produce.
Tho fundamentol,4haes on which the
nouso bill should be modified arc sum
med, up hero with:
(1) Tho amount of new taxation
should bo limited 'to $1,250,000,000 or
at tho outset to $1,500,000,000. To do
moro than this would bo as unwiso as
it is unnecessary. To do even this
would bo to do moro than has ever
been dono by any civilized Govern
ment in time of stress.
(2) The excess-profits tax based upon
n sound system ought to yield about
$500,000,000.
(3) Tho income-tax schedule ought to
be revised with a lowering of tho rates
on earned Incomes below $10,000, and
with an analogous lowering of tho
rates on tho higher Incomes, so as not
to exceed 34 per cent A careful cal
culation shows that an lncomo tax of
this kind would yield somo $450,000,
000 additional
(4) Tho tax on whisky and tobacco
ought to remain approximately as it is,
with a yield of about $230,000,000.
Theso three taxes, together with the
stamp tax at even tho low rato of tho
nouso bill, and wltli an improved au
tomobllo tax, will yield over $1,250,
000,000, which Is tho amount of money
thought desirable.
Tho abovo program would bo iu liar
mouy with an approved scientific sys
tem. It will do away with almost all
of tho complaints that aro being urged
against the present It will refrain
from taxing the consumption of tho
poor.
It will throw a far heavier burden
upon the rich, but wDl not go to the
extremes of confiscation. It will ob
viate Interference with business and
will keep unimpaired the social pro
ductivity of tho community.
It will establish a Just baJanco be
tween loans and taxes and will not
succumb to tho danger of approaching
either tho tax-only policy or tho loan
only policy. Abovo all, it will keep
an undisturbed elastic margin, which
must bo more and more heavily drawn
upon as tho war proceeds.
Business as Usual" to be the National idea, "Wotk for
every man and enrnino mm-pr inralcr tlifiti ivcr lu'fiiit' iit ivr-
I , - r ,---- ;, - - -.-. .. .
tain guarantees of continued prosperity ami of an ever-widening
scope to our business and industrial life." J. Ogden Annour,
Member Advisor Committee, Council for National Defense.
Go Somewhere As
Usual This Summer
To the East: A complete scheme of attractive excursion fates
is announced to the Lake region, Canada. New l-ngland and
the Atlantic Coast.
To Colorado: The ideal summer region, nearby Nebraska, is
available at very low fares and with the finest train service.
Beautiful Hstes Park is reached over ni;lu. Colorado this
summer is going to be thronged. Arrange eatly.
The Black Hills: Here is another delightful Summer region
reachedover night from Nebraska and at low fares.
The National Parks: America's grandest tour. You can
visit Kstes, Yellowstone and Glacier on utu: ticket for a
sweeping scenic circuit of the Hast slope' of the Continental
T'lliri'lrh Atf.! .. ...-K f..
viut. wine us, uik lur literature; let us Help you.
H R. Parmer, Agt., Dakota City, Neb.
L. W. WAKE LEY, Gem ml I'.ihs.nger Agn.t,
1001 FiiriiM.n Hti.ni. OiuhIih, Neb.
RUEBEN - 54952
Pure
Bred
Percheron
Stallioii
This fine big 1950-lb stallion will make the season of 1917
as follows:
Monday and Tuerday, at Livery Batn in Hubbard.
Balanee of week at home, at Nacora, Nebraska.
TERMS $15.00 to insure colt to stand and suck. Set vice
fee becomes due immediately if mare is sold or removed
from the county. Due care will be taken to prevent 'acci
dents, but will not be responsible should any occur.
J. W. HEENEY, Owner
Nacora
Nebraska
Westcott's Undertaking
Parlors
Auto Ambulance
Old Phone, 420 New Phone 2007
Sioux City, Iowe.
Slaugter - Burke Grain Co.
DEALERS IN
Grain., Feed, Flour, Hay and Coal
FRED PARKER, Manager
Phono No, 4 Dnkottt City, N'obr.
I
Licensed Ivmbalmer Lady Assistant
Ambulance Service '
Wm. F. Dick.irvson
Vfiiciertadkifig
Ball 71
Auto 0471
415 Sixth Street
Sioux City, Iowa
JLjd&
n awZi
7zse
WPA
.-.:-,-. .
liurauraoinpaijy
JOHN H. REAM, Agent
Dakota City, Nebraska.
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