d been held by rich men in New York and the East instead of
being distributed, as it is, throughout the country. Why, is it not
perfectly manifest that a single year's American war taxation and
reduction of profits would take out of the pockets of such assumed
holders a vastly greater sum than any possible loss they could have
suffered by a default on their Allied bonds, not to mention the heavy
taxation which is bound to follow the war for years to come and the
shrinkage of fortunes through the decline of all American securities
in consequence of our entrance into the war?

Is it not perfectly manifest to the meanest understanding that any
business man fomenting our entrance into the war for the purpose of
gain must have been entirely bereft of his senses and would have been
a fit subject for the appointment of a guardian to take care of
himself and his affairs?

II

Now as to the allegations concerning taxation.

1. The largest incomes are taxed far more heavily here than anywhere
else in the world.

The maximum rate of income taxation here is 67 per cent. In England
it is 42-1/2 per cent. Ours is therefore 50 per cent. higher than
England's and the rate in England is the highest prevailing
anywhere in Europe. Neither republican France nor democratic
England--containing in their cabinets Socialists and representatives
of labour--nor autocratic Germany have an income tax rate anywhere
near as high as our maximum rate. And in addition to the federal tax
we must bear in mind our state and municipal taxes.

2. Moderate and small incomes, on the other hand, are subject to a far
smaller rate of taxation here than in England.

In America, incomes of married men up to $2,000 are not subject to any
federal income tax at all.

In England the tax on incomes of $1,000 is 4-1/2%
" " " " " " " 1,500 is 6-3/4%
" " " " " " " 2,000 is 7-7/8%

(These are the rates if the income is derived from salaries or wages;
they are still higher if the income is derived from rents or
investments.)

The English scale of taxation on incomes of, say, $3,000, $5,000,
$10,000 and $15,000, respectively averages as follows, as compared
to the American rates for married men:

In In
England America.

Income tax rate on $3,000 14% 2/3 of 1%
" " " " 5,000