The Arizona copper camp., 1919-11-01
FEDERAL TAXES SHOW INCREASE
Of 539 PER CENT Since 1914
REDUCTION and Change URGED

In report to members of the Cham
Der of Commerce of the state of New
York, the executive committee of that
body gives the results of it's study of
the influence on the high cost of living
Of the present federal policies relating
to taxation Of industry. After point
ing out the tremendous amount of
money which is to be raised bv taxa
tion, showing an increase of 539 per
cent this year over 1914, the commit
tee makes the following proposals:
81. That the federal government
consider funding. temporarilv. so mncn
as may seem advisable of the interest
on it's loans to it's allies in the great
war
"2. That The interest pavments or
the funded obligations received by the
federal government in lieu of interest
on loans to allies, be treated as sink
| ing fund investments. for the payment
Of orr own war del*.
"3 That not more than SO 7O0 600
be raised annually nv federal taxation.
| ~. That the revision of taxation
Inecessarv to reduce the annual tota1
tn $2 700 0nO 600 he accomparied by
fhe substitution Of tavos tnndino tn
the elimination Of waste and checkin"
os extravaganza. for taves which tend
TO interfere with the accumulation Of
indrctr'o1 caDital.
| "5 That n BUDGET system at once
ho adcnted nv co~oress"
The report of the committee. which
is headed bv Welding Ring, and in
clrdes among its members A. G.. Bed
ford. IRVING r.. Pneh. T.. r. T4orea. A.
Rarton Henhnrn and William TT. Por-
| tor follows. in mart:
"Coet Of government is a necessary
cost of existence. But if the govern.
mont undertakes unnecessary fllnc-
tions or is extravaeant in perform
ance Of legitimate functions. the cost
of living is unduly enhanced to its
nnoDle.
ga government by funding it's ex
nenses spreads tha cost over on ev-
tended period OF time: ty taxation it
Concentrates the burden.
"The secretary of the treasury esti
mates the total war debt will be. June
90. 1920. s26 5165091 16O This includes
n 4 NJ b a
net debt. subject to reduction by real
;uation on war assets. is. therefore.
SIT 414.5O9.160 Tho total cost Of the
war has heon s2t O75 900 600. Of this
approximately "a per cent. or s7134,
600 900. has been paid bv taxation.
"Had this huge sum been collected
equally from the families Of the Unit
ed States, it would have increased the
average cost of living to each by
1922. 40 for federal taxes.
"This indicates one of the most
potent causes of high costs and points
out the largest single element and in
fluence that can be modified so as to
reduce Lno cost Oh llNlHS.
"The secretary of the treasury esti-
mates that federal taxes for year end
| ing June 80, 1920, will he: Internal
revenue taxes, $4,94O, 100000; customs
duties, $26O,OOO,OOO; total $5,2OO,OOO,-
900.
"Were these taxes to be collected
equally from the families of the Unit
ed States, the average cost of living
to each would include $235 for federal
taxes. In 1914 federal taxes amounted
to less than $36.75 family. In other
words, this element threatens to show
ar. increase of more than 539 per cent.
Cup to July 1, 1915, the ordinary
expenses of the federal government,
LESS interest on debt, never exceeded,
in time of peace, $7O2,000,000. In the
absence of budget it is difficult to
lappraise the future, but surely $780,
100000 a year should be ample to
cover cost of government. Therefore,
a liberal estimate of the annual
amount needed FOR interest and OrQ1-
mary expenses, in the immediate fu
|ture, would be $2,7OO,OOO,OOO. This as
sumes that the interest ON the total
debt of $26,516, 500, 100 will for a time
become a federal expense, and in
cludes a charge of $1,25O,00O,O0O for
that purpose.
American fiscal policy has always
required payment of governmental
debt to follow promptly upon the
events that caused it's incurrence. This
policy should not be abandoned But
if the allies pay their interest, sink
| ing fund in excess of 2 per cent will
thus be provided for retiring our war
debt.
"In order not to hamper our allies
| in their recovery it would be wise for
time to refund their interest pay
ments Should this policy be followed.