The Marietta journal. (Marietta, Ga.) 1918-1944, 1919-05-23


viceable to every maritime people in
restoring, much more rapidly than
would otherwise have been possible,
the tonnage wantonly destroyed in the
war. / have only to suggest that
there are many points at which we
can facilitate American enterprise in
foreign trade by opportune legisla-
ton and make it easy for American
merchants to go where they will be
welcomed as friends rather than as
dreaded antagonists. America has a
great and honorable service to per-
form in bringing the commercial and
industrial undertakings of the world
back to their old scope and swing
again, and putting solid structure
of credit under them. All our leg
islation should be friendly to such
plans and purposes. And credit and
enterprise alike will be quickened by
timely and helpful legislation with re-
gard to taxation. hope that the con-
gress will fid it possible to undertake
an early reconsideration of federal
taxes, in order to make our system
of taxation more simple and easy of
administration and the taxes them
selves as little burdensome as they
can be made and yet suffice to support
the government and meet all its obi
cations. The figures to which those
obligations have arisen are very great
indeed, but they are not so great as
to make it difficult for the nation to
meet them, perhaps in single gene
ration, by taxes which will neither
crush nor discourage. There are not
so great as they seem, not so great
as the immense sums we have had to
borrow, added to the immense sums
we have had to raise by taxation,
would seem to indicate; for a very
large proportion of those sums were
raised in order that they might be
loaned to the governments with which
we were associated in the war, and
those loans will, of course, constitute
assets, not liabilities, and will not
have to be taken care of by our tax
payers.
Taxes and Productive Resources
The main thing we shall have to
care for is that our taxation shall
rest as lightly as possible on the pro-
ductive resources of the country, that
it's rates shall be stable, and that it
shall be constant in its revenue yield
ing power. We have found the main
sources from which it must be drawn.
/ take it for granted that its main
stays shall henceforth be the income
tax, the excess profits tax and the es-
tate tax. All these can be so adjust
ed to yield constant and adequate re-
turns and yet not constitute a too
grevious burden on the tax payer. A
revision of the income tax has already
been provided for by the act of 1918,
but | think you will find that further
changes can be made to advantage
both in rates of the tax and in the
method of its collection. The excess
profits tax need not long be main
tanned at the rates which were neces-
sary while the enormous expenses OF
the war had to be borne; but it should
be made the basis of a permanent
system which will reach undue profits
without discouraging the enterprise
and activity of our business men.
The tax on inheritances ought, no
doubt, to be reconsidered in its rela-
ton to the fiscal system of the tede-
raj government also.
Many of the minor taxes provided
for in the revenue legislation of 1917
and 1918, though no doubt made nee
essary by the pressing necessities OF
the war time, can hardly find suttl-
Gent justification under the easier
circumstances of peace and can now
happily be got rid of. Among these
hope you will agree, are the eXer-
cises upon various manufacturers ana
the taxes upon retail sales. They
are unequal in the incidence on dlt-
ferent individuals. Their controversy
is difficult and l. expensive. Those
which are levied upon articles sold
at retail are largely evaded by the
readiustment of retail prices prices.
On the other hand, l should assume
that it is expedient to maintain
considerable range of indirect taxes;
and the fact that alcoholic liquors
will presently no longer afford a sour
ce of revenue by taxation makes 1t
the more necessary that the field
should be carefully re-studled IN or
der that equivalent sources OF reVe-
nue. may be found which will be legl-
innate and not burdensome to draw
upon. But you have at hand IN the
treasury department many experts
who can advise you upon the matter
much better than l can. | can only
suggest the lines of permanent and
workable system and the placing of
the taxes where they will least ham,
per the life of the people.
Revision of Import Duties
There is, fortunately, no occasion