The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-12-11
HIGH COST Of LIVING
WILL DROP WITH
|. REDUCTION Of TAXES
Pruning Of Revenue Bill
Will Save Public
Millions.
c.. O. P. DIS S E N T S
Republicans Want Credit
for Making Tax Re-
auctions, Declares
Simmons.
C. 0. P. D | S S E N 7 S

Washington. Dec. follower
prices for food and other ncct,s-
sarics Of life will come with the
reduction Of taxes to the pre-war
standard. Senator Simmons told
the Senate today In opening the
debate on the $4,000. 900 90 rcve-
nue. bill. Unless the taxes arc re-
dutrd now. he said, producers
will mark up their prices to con-
thereby be enabled to keep 3d.
000.O0O.OO in their own pockets
when the tax rates are finally
lowered
Senator Simmons was present
ing the view OF the majority of
the finance committee that tho
present bill should cut the rates
TO be collected in 1920 SO that not
more than $4,000. OOO. 900 in reve-
nue. would be raised. This view is
opposed by the republican sena-
tors nn the committee because
they want to handle the tax re-
ductions themselves when they
get control of congress.
OF this republican opposition
Senator Simmons said:
This situation is caused through
the desire of one political party TO
perform the gracious task of making
the reductions in taxation. This will
cost the people 50. GOO. 900. 0oo, and tho
government will derive no benefit
from it
In further explanation OF why he
believed IL necessary to reduce the
1920 taxes in the present bill, Senator
Simmons said
'sThe minority insists that the tax
reductions he made AZ some later date.
Unless an extra, session of congress is
called. this must go over until the first
Of next December. Producers of rcvn-
nue. during the interim will be unable
to fix proper prices for their products.
The principles of self protection AZ
veil a. seifishnsss MIL pEsvail. Tnz
necessary tax exactions will he made
to meet the unknown requirements.
Producers will not take the risk.
Prices will be marked up and neither
the government nor the people will
get the money. II will remain in the
pockets of the great Industrial tax
payers and will go to increase the
great and Overwhelming profits they
make. 4~
r. @. r. oIa,osifion, ~
EepubsicM opposition ~ gae 7fg1o
plan was arcentuated by the fling Of
the minority report. signed by Soma
tors Penrose. Pennsylvania. Lodge !.
Massa chusetts: McCumhe North Da-
kota: Smoot. Utah: Townsend, Michi-
gan and Dillingham;. Vermont. Sena-
tor La Toilette. of Wisconsin, will file
a separate minority report.
In their report. the republican sena-
tors take the ground that no one can
foresee the events of the coming
twelve months, and that any attempt
TO fix at this time the taxes for 1920
is 'fin violation of every sound IriH
ciple of legislative procedure ana,
economically. is fallacious and UNI
sound"
II is pointed out that every bust
ness man knows that taxes will he
lowered as the result of a reduction in
government expenditures. The fact
that changing conditions during the
time the bill was under consideration
ena bled the reduction OF the present
bill by two billion is cited as an argu-
ment against undue haste in fixing
upon a policy for the year 10 come.
who can foresee clearly results
from the REIMBURSEMENT and recon
struction program inevitably impend-
ing and bound to follow the return Of
peaoe?" the report continues, Both
capital and labor are interested vitality
In these establishments and will be at.
fected by them In a way that cannot
be foretold The problem of-thc high
cost OF living lis not the least of those
awaiting attention. and a wise and
carefully considered economic policy
must be framed at the proper time
with full information as to the facts.
No program for the near or even dis