Evening star., 1919-12-07
FEDERAL TAXES FIGURE
BIG IN LIVING COSTS
Take More Than Is Per Cent of the Income
of the Average American Family,
Statistics Show.
BY G. GOULD LINCOLN.

BY G. GOULD LINCOLN.
TEDERAL taxation as a contribut-
r. ing cause to the high cost Of
living is giving food for serious
thought to officials of the gov.
eminent and members of Congress.
Secretary Glass Of the Treasury, in his
annual report, made public last week,
calls attention to the fact that the
present revenue law. with it's very high
income and excess profits taxes, of
necessity has been responsible for
much of the increased cost of living.
And the public is beginning to ask
itself more and more: What Is the
reason for these high federal taxes?
The war is over and peace is here
even though the peace treaty hasn't yet
been ratified. It is estimated that dur
ing the fiscal year ending June 80. 1921.
$4 .515, 900, 900 will be collected in Gus
toms. income and profits taxes and mis-
cellaneous internal revenue taxes.
Estimates Of Receipts.
Further, it is estimated that the total
receipts of the federal government dur
ing the fiscal year 1921. including re-
ceipts from the sale of public lands,
Panama canal tolls, the public debt and
taxes already mentioned, will reach a
grand total Of $500. .0o0.000 Quite a
sizable sum.
There are only two reasons for gath
ering this huge sum. First, to meet
the expenses of the government, and,
second, to pay the war debt, or rather
to pay the interest on the debt and make
a beginning at retiring that debt
With these reasons eliminated there
would be no reason whatever for col
lecting federal taxes from the people.
Now. the war debt must eventually
be paid. and the government must
continue to operate and pay its ex-
penses. The only hope for the people.
when 1t comes to the question of re-
ducing taxation. is to cut down the
expenses of running the government.
Secretary Glass had this in mind, un.
doubtedly, when he recomm ended
that Congress make no appropriations
for expenditures in, new fields in the
appropriation bills for the fiscal year
1921, which are now to be enacted into
law.
Estimates Are Enormous.
But in spite Of this wise admonition
of the Secretary Of the Treasury, a book
Of estimates compiled by the executive
departments-the only national budget
which the government now has-was
transmitted to Congress last Monday
by Mr.. Glass which is positively stag
tger1ng. To many persons, especially
those who are having hard time pay
ing war taxes In peace times, these es-
Inmates appear scandalous. It seems
that every executive department Of the
government and every bureau, ignoring
the necessity for economy in govern
ment expenditures, is demanding hun
dreds of thousands and millions of dol
lars more even than was appropriated
for the present fiscal year, which has
been, next to the actual war years, the
year OF greatest expenditures on the
part of the government.
Glance at this budget-thrown to-
gether without any attempt at co-ordi-
nation and correlation It calls for a
total expenditure of s4.473, ,6s6, ,35s-al-
most five billions of dollars. The ap-
propriations for the present fiscal year
were $5.62S, ,4S6,359. and during this year
the government still had many war ex-
penditures to meet, including those for
the Army and Navy and the railroads
under government ownership. This sum
also included $1,000. 600, 900 appropriated
as the wheat guarantee fund And when
this wheat fund is subtracted from the
appropriations for the present fiscal
year. these appropriations exceed those
now proposed for the fiscal year 1921 by
only sl55. $4,000. =
Argument for Budget.
II ever there was an argument ready
to the hand in favor of the adoption
of rational. national budget sys-
tenn, scientifically planned, with the
responsibility placed square1y, upon
an executive head, this book of esti.
mates just submitted is it. The House
has already passed the Good budget
bill, and the Senate budget commit
tee is beginning hearings upon the
Good bill and another introduced by
Senator Mccormick of Illinois, who is
chairman of the budget committee. In
the book of estimates it seems that
the head of every department and
bureau has attempted to get all of
the government money-which is the
taxpayers money in the end-that he
can get. without any regard to the
general needs of the government. or
the necessity for strict economy at
this juncture.
Another thing about the book of
estimates-no recommendations are
made for increases in pay of the gov
ernment employees Congress is left
to figure out such increases as it may
desire to make after the reclassifcation
commission now at work has made its