Arizona republican., 1918-11-15

Industry and products, consequent upon the conclusion of the war. may result in sudden reduction of prices and wages and even in unemployment, if we are not prepared to continue to sell on credit to tho extent that that may be necessary"
 Taking up the pending revenue bill, Tho secretary explained his views as follows:
 The excess profits tax rates, ap- plicable Co the calendar year 1918, should not be greater than those pro Vided for in the existing law of October, 1917, and should be payable only in those cases where such excess profits taxes would yield a larger return than inc proposed war profits tax. The so per cent war profit taxes. applicable 10 the calendar year 1918, should be re- taincd. Contracts have been made dur ing past months in the expectation of a heavy war profits tax Every one is agreed that war profits should be taxed They must be taxed now.
 Tt is time to look ahead to the fu- ture of American business and indus try. Our tax measures should be so de- Vised as to encourage and stimulate rather than to burden and repress them. I, therefore, recommend the immediate amendment of the pending bill, so as to provide that, with the collection of the taxes levied upon war and excess profits for the valendar year 1918, and payable in the year 1919, the war and excess profits taxes shall come to an end except insofar as may be neces- sary to subject to these taxes profits which. though arising from contracts entered into during the war period, Iat- frt tf,,rr Ia nically be profits of 1919 and not profits of 1918.
 Would Plan Now For 1919.
 Tt seems wise to provide, with the elimination for the calendar year 1919 of the war and excess profits taxes, for a sufficient revenue from corpora tion and individual incomes taxes, ap- plicable to the calendar year 1919, to make the total revenue payable during the calendar year 1920 not less than $4.0O0, 900. .00O.'
 After citing necessity of adequate provisions for amortization, conserva tive valuation of inventories, and the ascertainment of the minimum income, which shall be exempted" as applied to- ward any excess profits taxes, Mir. Me AdoO said:
 "I cannot overemphssize the i'm
 portance ot determining now the
 basis of taxation which will apply
 to the calendar year 1919, as well
 as to the calendar year 1918. Busi-
 ness and industry and individual
 initiative and enterprise are entitled
 10 know in advance the basis of
 taxation upon which all the artivi-
 ties of the nation must be conduct
 ed. Prosperity cannot be main
 tained if business is kept in uncer-
 tainty as to taxation.
 Tt is always unfortunate to be com pelled to enact a tax bill at the end O. the calendar year. which would permi contracts and business arrangements generally to he entered into with cer. tainty, as to the burden of taxation tC be borne. This is a gross injustice tt business and to all forms of enterprise It is costly also to the people at large as they are required to pay highel prices for their necessities, becaust producers, in order to be on the saft side, fix prices on the assumption tha taxes may be higher than they subse quently turn out to be. Definitenesi and certainty as to the basis of taxation sbould be given in the pending bill. no alone as to the calendar year 1918, bu as to the calendar year 1919. This vii enable business and enterprise to pro Cecd with confidence and courage"