The Parisian. (Paris, Tenn.) 1907-1962, 1918-08-02
JUST TAXATION
To FINANCE. WAR
By Representative Cordell Hall.

BY Representative Cordell Hall.
The passage of the Federal Reserve
Act and the Federal income tax IN
1913 constituted by far the two most
notable steps in fiscal reform ever
taken by the United States govern.
nent in its entire history. The en-
actment Of both of these laws of such
fsr-reaching and tremendous impor-
lance marked the elimination OF
protracted efforts extending over ma
ny years to substitute modernized ano
efficient fiscal legislation in each in.
stance for the veritable patch-work
system of finance and revenue sc
long in operation. The growing pub
lies appreciation of these two great
acts will, as their wise and beneficient
effects are more fully experienced
and realized, become greater ano
greater with the passing years.
The general government, until re-
Gently, has never devised or adopted
any comprehensive, scientific system
of taxation, mainly because its reve-
rue demands were not great enough
to strongly focus public attention
Oh the defects and short comings OF
the partial and lopsided system relied
Oil. Fer some years, at least, fol
lowing the war, the government will
doubtless find itself obliged to i'm
pose taxes for normal purposes to an
amount of $4,OO0,oO0,OO0, or the
rise.
Equitable System Demanded.
The necessity for broad, sound
and equitable system of Federal tax.
alton now becomes inevitable. I'm.
der former tax laws wealth escaped
the chief portion of its just and fan
share. The middle and poorer class
es bore. the burden. The income tax
had its origin in the two field purposes
of equalizing tax burdens and pro-
viding adequate revenue. This tax
is today playing tremendous part
in the financing of the war.
Few people yet realize the fright
full position in which the government
would have found itself in it's effort
to provide war revenue except for the
fact that the income tax movement
during the previous years, had result
ted in the amendment of the Consti-
tuition and the enactment Of an in
come tax law which had been gotten
well into operation when the war
came on and still less do they yet re-
alize the great service thus rendered
the country in this wise, though in a
measure unconscious, preparation
for the war that was soon to follow.
Wealth, for the first time, bears its
share of taxes.
Many persons have had the erro-
neous. impression that tariff taxes
come from an inexhaustible source of
revenue capable of meeting the most
extraordinary expenditures and to be
tapped at will by the Federal Gov
eminent. The truth is that the max
imum yield of tariff taxes for any
given year heretofore was $333, 0O0,-
000 AS far back as 1919 the fra
mers of the Payne tariff law, in
search Of revenue under normal con-
ditions, were obliged to turn to in
ternal taxes as means of supple
menting the estimated deficient tar
iff tax yield. To this end they first
incorporated a graduated inheritance
tax provision and one taxing coffee.
Later these provisions were elimi-
mated and corporation excise pro-
vision substituted.
Tariff Inefficient in War.
The largest amount that could pos
sibly be derived from customs sour
ces in the future will not exceed be-
tween $400,000,000 and $4,000
600. Unless laid upon sugar, coffee,
tea, ETC., it is supremely ridiculous to
suggest lar.snf tax at the CustGm
House. Only S409,0 100000 Of our