New-York tribune., 1918-12-11

tervening months. and no one with any
degree of defniteness can estimate the
governments needs or the countrys in
dustrla prosperity Sources Of revenue
not now tapped may be made to yield
large portion, thus relieving other
sources from onerous taxation. Who
can foresee clearly results from the re-
adjustment and reconstruction pro-
gramme inevitably impending and
bound to follow the return o. peace.
"'ahe problem Of the igh cost of liv-
ing is not the least of those awaiting
attention. and wise and carefully con
sldered economic policy must be framed
at the proper time with full informa-
ton as to the facts Care must be
exercised so as not to disarrange our
industrial system in way which will
render either capital or labor less EN-.
ployed in profitable pursuits than at
the present time.
"a sound policy demands that no leg
islation shall be enacted which will
suddenly or unwisely disturb values
and prices
Strong Protest Made
"Vast governmental undertakings
and agencies made necessary bv the
war must scome in for large share of
consideration as to the policy to be
adopted with respect to those activi-
ties in the future thus presenting the
most difficult domestic problems ever
confronted by this nation" the report
continued.
"No programme for the near or dis
tant future has even been evolved
nothing but the merest outline s,1p-
gestlons and preliminaries- yet on
the threshold of these nebulous condi
tons it is proposed to lay down hard
and fast scheme of taxation for the
future
The only argument advanced in be-
ma Of this extraordinary proposition
TO TX arbitrarily the rates of taxation
IN the present bill for 1920 is that the
taxpayers are entitled to know the
amount o. reduction in taxes and the
character OF the taxes for that year.
1T does not seem to the minority
mat this argument furnishes any ius-
tlhcation for violating the methods of
orderly legislative procedure Every
taxpayer, in the country Knows that
taxes will be reduced after this year as
the inevitable resu t Of a reduction in
governmental needs following the
declaration o. peace
Every business man knows the next
Congress can enact revenue measure.
based on accurate information as to
the then existing conditions, which will
reduce the burdens of taxation as far
as the requirements of the government
will permit.
"Why, then, attempt to do so now in
this bill. with no knowledge of future
conditions and needs
Uphold Present Plans
AS 1918 measure the minority
members of the committee concur in
the reporting of the bill, but the meas
ure should stand as essentially 1918
measure, and the many changes which
VIII be necessary to adapt the tax law
to the conditions to follow and found
to obtain in 1919 and subsequent years
should be made at one time and in the
lght OF as full information as it will
be possible to obtain"
Senator Thomas. while concurreg in
the minority report, presented his in
dlvldual views on certain features of
the bill, and Senators La Toilette and
Smoot announced an intention of filing
similar personal reports tomorrow.
senator Thomas found fault with the
excess profits provision, which he de-
clared to be arbitrary unjust and in
detenslble. He favored straight war
profits tax based upon the excess Of
war earnings over the average earn
lngs OF representative corporations in
the pre-War period.
Senator Simmons introduced his ad
dress with review of the revenue sit
uation and with presentation of the
conflicting views Of the majority and
minority as to the proposition to estab
llsh now the tax Yates for 1919 as wei.
as 1918
Predicts Extra Session
"The minority" he said, "insists that
tax reductions be made at some later
date. Unless an extra session of Con-
gress is called this must go over until
the first of next December. Producers
of revenue during the interim will be
unable to fix proper prices for their
products The principles of self-pro-
lection as we'll as sefshness will pre-
vail. Unnecessary tax eXactions will
be made to meet unknown require
ments. Producers will not take the
C1S.@S-G <VW1laaSS