ABSTRACT
§ 1. THERE are two proposals for a levy A upon capital for the purpose of reducing the burden of indebtedness which deserve consideration. The first would confine the levy to the new capital values created in the period of the war. The general argument is to the effect that this increase of wealth is presumably due in its origin to war conditions, consisting in the main of squeezes and windfalls, the product of war needs and war extravagances. Originating in this manner, much of this enlarged capital has escaped taxation, though the income it furnishes is taxed. It has a large ability to pay, and a post-war levy made upon it is in effect a correction of the financial negligence and error which permitted this war-made wealth to come into the possession of its owner. It is contended that, at a time when war claimed from every one his proper sacrifices, such profits ought not to have been made, and that having been made, they ought to be reclaimed by the State, which could thus remedy in part the injuries caused by its loose war-finance.
