THE PROGRESSIVE INCOME TAX.

Lake County Press, Issue 2698, 6 September 1917, Page 5

THE PROGRESSIVE INCOME TAX.

Several Anomalies. In theory the progressive iimoine tux seems to Wo (ho fairest system of taxation (<i\s th-r farmers' Advocate). It has the virtue of compelling the taxpayer to pay aoc.ir lino to ahility, lout theory does not alw i-ys work out in practice. The clitli- j c ,, iv is iu the interpretation of income. T u)'"r.linary dictionary definition of the w .(• 1 is ” That gain which proceeds, from j labour, business, property, or cipital of a V I h, Valid ill a roiij<li and ready way f.li a .’:eli iiii .u is substanti illy coirect as far a; »j iplic at ion to t ix itiou goes ; hut in di.. wl> of our legislate!s certain items of expenses incurred in miking the incom ■ ire not allowed. As an illustration : Ou in ichiuery, which depreciates annll dly, no deduction is allowed, though j when llie machinery or implements are “scrapped,” the Commissioner may allow such sum as ho deems just. Keen repaiis a-o limited to the sum usually expended dining the year. In Australia deprocia- , ti hi is allowed ou some 150 items. _ 1 lieu, again, companies wonting timber or coal hj ive to pay mi their profits irrespoctiie of the fact (hit the timber oi coal lias been paid for by capital, and form.s a large part of the so-called profits. These examples show that the income on which tax itiou is levied is not therefore iu eveiy case “ gain.” In all forms of taxation j there are sure to ho anomalies, and war I time does not appear the best time to | make objections, unless the anomaly doj velo ies into a serious in justice. One can j ijijite mi lerstand a saw-miller quietly subI milting to a ten per cent, tax on his de- | | reciatiug supply of limber, but when it becon.es a thirty or forty per cent, levy, 1 lie hj is re ismi to con plain So with the farmeis’ land tax; when it was Id plus r graduations, and the farmer paid no in-

"ome tax, lie hid no cause for complaint Then when an income tax was added, he only complained a little, hut now that the laud tax is levied on his mortgages, and the amount he p *ys is not allowed as an expense in producing his income, and his income tax is m Penally increased, it is not surprising if lie protests against being taxed first upon his debts and then on his land tax, and again on his income.