The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-05-20

Revise Tax system.
1 hope that the congress will find it pos |
sibIe to undertake an early reconsideration |
of federal taxes in order TO make our sys- |
tenn of taxation more simple and easy OF !
as little burdensome as they can be made :
and yet suffice to support the government /
and meet all obligations The figures To
which those obligations have arisen are
very great indeed, but they are not so
ton to meet them and meet them, perhaps |
in a single generation by taxes which WIFI
neither crush nor discourage. These are
not great as they seem, not so great
as the immense sums have had to Dor /
row added to the immense sums we 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 la
bilities and will not have to be taken care
of by our taxpayers. The main thlhg we
shall have to care for is that war taxation
shall rest as lightly as possible on the !
productive resources of the country that
its rates shall be stable. and that II shall
be constant in its revenue yielding power
We have found the main sources from
which it must be drawn. / take 1t for
granted that its mainstays will henceforth
be the income tax, the excess profits tax,
and the estate tax. All these can he so
returns and yet not constitute too criev
Gus burden on the tax payers.
Further Alter Income Tax.
A revision of the income tax has already
been provided for by the act of 1918: but l
think you will find that further changes
can be made to advantage both in the rates
of tax and the method of its collection.
The excess profits tax need not long be
maintained at the rates which were neces-
sary while the enormous expense of the
war had to be borne; but 1t should be made
the basis of n permanent system which
will reach undue profits without discourage
ing the enterprise and activity of our bust
no doubt, to be reconsidered in its rela-
tons to the fiscal systems of the several
states, but it certainly ought to remain a
permanent part of the fiscal system of the
federal government also.
Many of the minor taxes provided for
in the revenue legislation of 1917 and 1918,
tho no doubt made necessary by the press
ing necessities of time. could hardly
find sufficient justification under the easier
PLY be got rid Of Among these l hope
you will agree are the excuses upon various
manufacturers and the taxes upon retail
sales They are unequal in the incidence
on different industries and on different in
dividuaIs. Their collection is difficult and
expensive. Those which are levied upon
articles sold at retail are largely evaded by
the readjustment of retail prices. On the
other hand, l should assume that 1T is
eXpedient to maintain considerable range
of indirect taxes; and the fact that alco-
holtc liquors will presently longer af-
ford source of revenue by taxation makes
1t the more necessary that the field should
be carefully restudied in order that equiva-
lent sources of revenue may be found which
1t will be legitimate and not burdensome
| to draw upon. But you have at hand in
! the treasury department many experts who
can advise you upon the matters much
| lines of a permanent and workable system.
! and the placing of the taxes where they
Will least hamper the life of the people.
Import Duties Not Pressing.
| There is fortunately no occasiO for I'M
| dertaking in the immediate future any gen
eral revision of our system of import du-
ties No serious danger of foreign com
| petition now threatens American indus
| tbp
/ war less disturbed and less weakened than
| any of the European countries which are
our competitors in manufacture. Their
| industrial establishments have been sub
jected TO greater strain than ours their
labor force to more serious disorganiza-
ton and this is clearly not the time to
seek an organized advantage. The work
or mere reconstruction will, l am afraid
! tax the capacity and the resources of their
people for years to come. SO far from
| there being any danger or need of accen-
| tuated foreign competition 1t is likely that
| the conditions of the next few years will
greatly facilitate the marketing of Amer
ican manufactures abroad. Least of all
| in the tariff act of 1913. of permitting the
free entry into the United States of the
ehrlch our own abundant supplies.
4 Must Rely More on Ourselves.
Nevertheless there parts of our tar
IF system which need prompt attention.
The experiences of the war have made il
pain that In some cases too great reIi-
ance on foreign supply is dangerous and
that in determining certain parts of our
| tariff policy domestic considerations must
| be borne in mind which are political ms
well as economic. Among the Industries to
| Whlch special consideration should be Civ
en- is that OF the manufacture of dyestuffs
ana related chemicals. Our compiete de
pendence upon German supplies before the
c ~%r NIUE nf me interruption OF trade a
Inc close relation between the manufac-
ture OF dyestuff- on the one hand, and of
explosives and poisonous gases on the
other, moreover, has given the industry an
exceptional significance and value. Attic
the United States will gladly and unhpsi-
tatingly join in the program of interna
tional disarmament it will nevertheless be
a policy of obvious prudence to make Ger
tam OF the successful maintenance of many
strong and well equipped chemical plants
The German chemical industry with which
and may well be again. a thoroIy knit
monopoly capable of exercising n compe-
ution of peculiarly insidtous and dan
Must Provide Safeguads.
The United States should. moreover. have
the means of properly protecting itself
whenever our trade is disseminated
against by foreign nations in order that
treatment which We hope 10 accord and to
promote the world over: Our tariff laws
retaliation on our products compared
with the products of other countries Tho
enter upon any course Of retaliation. we
must frankly face the fact that hostile
legislation by other nations is not beyond
the rnnge OF possibility and that 1t may
have to be met by counter legislation.
The subject has fortunately been exhaus
lively Investigated by the United States
tariff commission. recent report of that
commission has shown very clearly that
we lack and that we ought to have the
instrument necessary for the assurance of
equal and equitable treatment. The atten-
| ton of the congress has been called to this
! matter on past occasions and the past
! measures which are now recommended by
the tariff commission are substantially the
same that have been suggested by previous
administrations. I recommend that this
} phase of the tariff question receive the
, early attention of the congress.
Calls for Suffrage Adoption.
J Will you not permit me. turning from
these matters, to speak once more and