But it is entirely misleading to base a conclusion as to the relative heaviness of the American and British tax merely on a comparison of the rates, because the English tax is assessed on a wholly different basis from the American tax. As a matter of fact, Congress has estimated that the 20% to 60% tax on the American basis will produce approximately the same amount in dollars and cents as the 80% tax is calculated to produce in England. (I know I shall be answered that we have twice the population of England and twice the wealth. But it must be borne in mind that a far larger proportion of our wealth is represented by farms and other non-industrial property and that a far larger proportion of our people than of the British people are engaged in agricultural pursuits which are not affected by the excess profit tax. I believe it will be found that the total wealth employed in business in America is not so greatly superior to the total wealth similarly employed by Great Britain.) _The American excess profit law so-called taxes all profits derived from business_ over and above a certain moderate percentage, regardless of whether or not such profits are the result of war conditions. The American tax is a general tax on income derived from business, in addition to the regular income tax. _The English tax applies only to excess war profits_; that is, only to the sum by which profits in the war years exceed the profits on the three years preceding the war, which in England were years of great prosperity. In other words, the English tax is nominally higher than ours, but it applies only to war profits. The normal profits of business, i. e., the profits which business used to make in peace time, are exempted in England. _There, only the excess over peace profits is taxed. Our tax, on the contrary, applies to all profits_ over and above a very moderate rate on the money invested in business. In short, our law-makers have decreed that normal business profits are taxed here much more heavily than in England, while direct war profits are taxed less heavily. You will agree with me in questioning both the logic and the justice of that method. It would seem that it would be both fairer and wiser and more in accord with public sentiment if the tax on business in general were decreased and, on the other hand, an increased tax were imposed on specific war profits. 5. Our federal inheritance tax is far higher than it is in England or anywhere else. The maximum rate here on direct descendants is 27½% as against 20% in England. In addition to that we have State inheritance taxes which do not exist in England.