New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1919-05-30

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 a solid
structure of credit under them. Our
legislation should be friendly to such
plans and purposes.
And credit and enterprise alike will
be ~quickened by timely and helpful
legislation with regard to taxation. |
hope that the congress will find 1t pos
sible to undertake an early reconsid-
Grafton of federal taxes. In order to
make our system of taxation more sim
Pile and Easy Of administration and the
taxes themselves as little ~burdensOme
as they can be made and yet suffice
to support the government and meet
all its obligations. The figures to
which these obligations have arisen
are very great indeed, but they are not
so great as TO make 1t difficult for the
nation to meet them, and meet them.
perhaps. In a single generation. by
taxes which will neither crush nor dis
courage. They are not S o great as
they seem. not SC great as the I'm
mense 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 proper
ton of these sums were raised In order
that they might be loaned to the gov
....l ..IlzL .-o a,a aoao,i
ated in the war, and those loans will.
OF course, constitute assets, not liabil-
tiles and will not have to be taken
care Of by our taxpayers.
Equitable Taxation.
"The main thing We shall have to
care for is hat our taxation shall rest
as lightly as possible on the productive
u Of the country. that its rates
shall be stable, and hat II shall be
constant In Its revenue-yielding pow
from which II must be drawn. take
II for granted that its mainstays will
h~enceforth be the income tax, the ex-
cess profits tax and the estate tax. All
these can be s o adjusted to yield con-
slant and adequate returns and yet
not constitute a too grievous burden
on the taxpayer. A revision Of the In
come 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 the rates of the
tax and In the method Of its collection.
The excess profits tax need not long
be maintained at the rates which were
necessary while the enormous expense
OF the war had to be borne; but II
should be made the basis of a perma-
nent system which will reach undue
profits without dlscouraging the enter
prise and activity Of our business men.
The tax on inheritances ought, no
doubt, to be reconsidered In its rela-
ton to the fiscal systems of the sew
eral %states,s but II 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, though no doubt made neces-
sary by the pressing necessities of the
war time, can hardly find sufficient
justification under the easier circum-
stances of peace, and can now happily
be got rid of. Among these, I hope you
Gus manufactures and the taxes upon
retail sales. They are unequal In the
incidence on different industries and
on different individuals. Their collec-
ton is difficult and expensive. Those
which are levied upon articles sold at
retail are largely evaded by the read
justment Of retail prices. On the other
hand. I should assume that it is ex-
pedlent to maintain a considerable
range Of indirect taxes; and the fact
that alcoholic liquors will presently
no longer afford a source of revenue
by taxation makes 1t the more neces-
sary that the field should be carefully
restudied In order that equivalent
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 depart
ment many experts who can advise
you upon the matters much better than
I can. I can only suggest the lines Of
a permanent and workable system,
and the placing Of the taxes where
they will least hamper the life Of the
people.
There is. fortunately. no occasion
for undertaking In the immediate fu-
ture, any general revision OF our sys-
TEN of import duties. No serious dan
ger Of foreign competition now threat
ems American industries. Our country
has emerged from the war less dis
turbed and less weakened than any of
the European countries which are our
competitors In manufacture. So far
from there being any danger or need
OF accentuated foreign competition. II
Is likely that the conditions OF the
next few years will greatly facilitate
the marketing of American manufac-
lures abroad. Least OF all should we
depart from the policy adopted In the
tariff act Of 1913. OF permitting the
free entry into the United States OF
the raw materials needed to supple
ment and enrich our own abundant
supplies.
Tariff Revision.
Nevertheless. there are parts of our
tariff system which need prompt at
tention. The experiences Of the war
have made IT plain that In some cases
great reliance on foreign supply Is
dangerous, and that in determining
certais parts Of our tariff policy do
nestle considerations must be borne
in mind which are political as well as
economic. Among the Industries to
which special consideration should be