Bellefonte, Pa., May 27, 1927. UO “HOW EXCESSIVE TAXES BLIGHT A NATION’S LIFE. The: blighting effects. of excessive ‘taxation, leading to a nation’s econom- ‘4¢ destruction, are described in the current issue of the American Bank- ers Association Journal by Garrard B. Winston, Under-secretary of the Treas- .ury. Citing. possible effects on the Ford Motor Car Company, he declares that “the value is so large and its ownership so centered it is conceiv- .able that collection of inheritance taxes may check, if not destroy, that unit of policy which has created and expanded that industry and thus pre- vent its future prosperity. Of what avail, then, is it to any government if it collects one hundred million dol- lars once in estate taxes and destroys a source of income upon which it can rely for revenue year after year? “Success of the Ford Company does mot mean simply that Mr. Ford and his son have grown wealthy. It means employment of tens of thousands of men and women; that mines, forests, railroads and vessels are brought into use; that the public has received an efficient and inexpensive means of transportation; that the farm is in touch with the city, and the worker with his office.” Mr. Winston says in part: Wezlth Flees Oppression “Upon first impression ‘it: ‘might ap- pear that. a nation could take all of ‘the earnings of its citizens or all of’ their property. The Soviet govern- ment proposed to appropriate all in- ‘strumentalities of trade and com- merce. Yet, when the state reached out to grasp this wealth, it disappear- ed and left nothing but a few tangible .objects, such as gold and jewels, , which were easily transported to oth- or countries. Wealth in Russia ceased to exist. “Jf income tax rates are placed so +bigh that capital in productive busi- - ness no longer gives a net return com- .-mensurate with the risk, capital will go out of productive business, lie idle, .-go- abroad, go into tax-exempt securi- . ties, or find other ways of avoiding the tax. If income tax rates are so excessive that a man of ability finds he must work more than three days a week for the government; he will be- come discouraged and decide that the result is not worth the effort. Less income will be produced and less will be realized from the tax. “Recently a letter came to the Treasury from a small farmer. He owned a few acres which in 1913 were assessed at $900 and on which a tax of $13 was levied. In 1924 the as- sessed value increased to $3,200 and . the .tax to $123, but the farm failed to .produce any more. . Taxes exceed- ed the rental value ‘of the‘ land‘ and amore’ than the net. earnings : of ‘the property were taken by the state. The farm was abandoned and now «duces no tax. not started, because after deducting taxes the risk exceeds the value of the expected return. Men have drop- ped business, spent their winters in Florida and their summers abroad, because what they are permitted to retain under present tax rates is not worth the labor they must give to acquire it. They prefer golf to the further development of the country. Unscientific Taxes Destroy a Nation “Unscientific methods of taxation may actually destroy the very earn- ings or property which it should be the principal interest of a govern- ment to foster. When it reaches the limits of what is known as its taxa- ble capacity, a nation has begun to die. If taxes are raised too high, a country will slowly but surely de- stroy itself. It will use for ‘daily con- sumption the seed corn on’ which. its future life depends, and the spirit of initiative and: adventure in its peo- ple will finally disappear. One or . more of three things happen: The quantity of consumption is cut down, which means a lowering of the stand- ard of living; or capital accumulations for extensions, improvements . and new undertakings must diminish, re- .gulting in a slowing up of progress and lessening eventually of taxable revenue; or, thirdly, a slackening of effort on the part of the citizen will take place when too large a part of his earnings are taken in taxes. “The effort in taxation should be to find the tax which will continue to raise money over a period of years. Invariably, with an excessive tax, its yield has fallen off year by year, while each rate reduction is reflected in an iecrease of taxable income. If . the Treasury is to be assured a con- tinuance of revenue, our citizens must prosper. If they are to prosper, the appropriation by the state of thefr earnings and property must be based upon economically sound principles.” Wives Welcome Polygamy The first wife usually is the head wife in the Afriean jungle and her rule is unquestioned except on those rare occasions when a man actually feels some glimmer of affection for one of his wives, and promotes her to head of the harem. Polygamy not only is accepted by the women, it is favored by them, For one thing, each new wife proportion- ately reduces the burden of the others. Doctor Fowzer attended a palaver at which an only wife, through her breth- .er, petitioned the chief to compel. her » & i 5 KS TO START 8 3 & *e 9, Qe * 'e ® / ®, Friday, June 3 o 0% 000 0600490659, 9, * 7 00 eae 2 s Doo * ®, 9, ® 9 9 €400,00¢ @ 00,90, EA * 3 § B: %% STORE WILLBE CLOSED § 3% > & $1} ALL NEXT WEEK UNTIL |{3 £1 9:00 O'CLOCK OF THAT {% 3 : > & > & *.0 % S o & — % > & (a) : Watch For Further 2 % % 3 Advertisement % ($059 080,00,90, > oe 4 & we & Goefoadeadeadendeadnedoedoaduadeadeadadeadsedoatoaoadoaeaeatocdodoatoade