mergency than now exists. Those seeking capital for other
countries--_and there is bound to be a very keen contest for
capital after the war_--would not fail to make use of these
arguments. Moreover, experience has proved that very high rates of
income taxation once adopted, are not easily reduced to the level
from which they started.

Therefore, in the case to which my argument was addressed, _i.e._,
unduly high income taxation in this country and no, or only very
moderate, income taxation in Canada, there can be little doubt that
_after the war_ there would be an outflow of capital to Canada, and
that--which is still more important--men of enterprise, especially
young men, will be apt to seek in that and other countries, fields
for their activities if the reward of enterprise is too greatly
diminished in America as compared to what it is elsewhere. Such men
would be doing nothing else than what many thousands of
American-born farmers have done within recent years in transferring
themselves, their capital and their working capacity to Canada.

_Not a single one of the leading European nations, after three
years of the most exhausting war, has an income taxation schedule
as high as that adopted by the House of Representatives; neither
Republican France, nor Democratic England, nor Autocratic Germany._
Of these three countries, England has imposed the highest income
taxation; yet, _the maximum rate in England is almost fifty per
cent. less than the maximum rate in the House Bill. The Cabinets in
these countries have undergone many changes in the course of the
war. They include Socialists and Representatives of Labor._ In the
determination of their taxation program, they have had the
assistance of the best economic brains in Europe. Those nations
have had far longer experience than we in the science of government
financing.

Yet not one of them has deemed it wise and advantageous to the
state to impose rates of income taxation as high as those fixed by
the House of Representatives. Surely, this fact and the economic
considerations underlying it, are deserving to be seriously weighed
by our legislators.

Does not the attitude of all the leading countries plainly indicate
their recognition of the fact that the action and reaction of
excessive income taxation create a vicious