circle from which the
governments of all belligerent nations even in their extremity have
shrunk?

And is it not a manifest dictate of reason that such burden of
taxation as must be borne should be imposed gradually, as was in
fact done everywhere in Europe, so as to give to all concerned a
chance to adjust themselves to the new conditions, and not with one
violent jerk? England imposed her present rate of income and excess
profit taxes not in the first year of the war, but started on a
much lower scale and by successive steps, in the course of nearly
three years, attained the figures now prevailing.

We know that man and beast are capable of carrying far heavier
weights if the strain is gradually increased than if the whole of
the burden is dumped on their backs at once. The same holds good of
economic strain.

Is it not plain that if the unprecedentedly high income taxation of
the House Bill--exceeding as it does any rates ever imposed by any
of the leading nations of the world--is enacted into law, the
Government will find itself crippled in respect of taxable
resources during the second year of the war; the very year which,
if the war does last beyond the present one, will presumably be the
crucial period.

Of course, the cost of the war must be laid according to the
capacity to bear it. It would be fatuous folly and crass
selfishness to wish it laid or endeavor to have it laid otherwise.
All I am advocating in effect is that in the public interest not
too much be exacted at once, but that by dividing the burden over a
reasonable number of years, capital in no one year and especially
not during the first year of the war, should be so excessively
taxed as to produce an unscientific and dangerous strain.

In addition to the concrete factors, there enter into this question
certain psychological elements of a somewhat subtle character, but
sufficiently definite and potent to be plainly discernible to those
who are experienced in dealing with business affairs and with men
of business, large and small.

I believe an income tax greatly increased over the rates heretofore
prevailing, yet keeping within the bounds of moderation, would
produce at least as large a total revenue as an exceedingly high
one. And the consequences of the economic error of placing too vast