The Monticellonian., 1919-05-30

comed as friends rather than as dreaded antagonists, America has q great and honorable service to per form in bringing the commercial and industrial undertakings of the world back to their old scope aud swing again. and putting a solid structure ut credit under them. Cur legislation Shnula he friendly 10 such plans and purposes.
 And credit anu enterprise alike will he dutckened ny timely and helpful legislation with regard to taxation. l hope that the congress wiil find it pos Sihlc 10 undertake an early recouSid- eration of federal taxes. in order tn make our SyS, em eff taxation more stnl- pie and easy of administration and the taxes themselves as little burdenSame as they can be made and vel suffice to support the government and meet all it's obligations The figures to which these obligations have arisen are very great indeed, but they are net so great as to make 1t difficult for the nation to meet them. and meet them. perhaps, in Il single generation, bE taxes which will neither crush nor dis courage. They are not so great as they seem, not So great as the i'm mense sums We have had to borrow, added to the immense sums we have had to raise hy taxation, would seem to indicate for very large prepor- tfon of these sums were raised in order that they might be loaned to the gov ernments with which we were associ- ated in the war. and those loans will, of course. constitute assets, not liahil- ities and will not have to be taken care of by our taxpayers.
 Equitable Taxation.
 "The main thing We shall have to care for is that our taxation shall rest as lightly aS possible on the productive resources of the country, that it's rates shall be stable and that if shall be constant ill it's revenueyielding DOW CT. We have found the main sources from which il must be drawn. l take it for granted that it's mainstays will henceforth he the income tax. the ex- cess profits tax and the estate tax. All these can be so adjusted to yield con stant and adequate returns and yet not constitute too grievous burden on the taxpayer. A revision of the in come 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 the tax and in the method of it's 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 he borne; but 1t should be made the basis ot a perina- nent system which will reach undue profits without dise0uraging the enter prise and activity of our business men. The tax on inhertances ought. no doubt, to be reconsidered in its rela- ton to the fiscal systems of the ses- eral states. but il certainly ought to remain 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 eircum- stances of peace, and can now happily be got rid of. Among these. hope you will agree, are the eXcises upon vari- ouS 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 eyaded by the read iustment of retail prices. On the other hand, l should assume that it is eX- pedient to maintain a considerable range of indirect taxes; and the fact that alcoholic liquors will presently no longer afford source of revenue by taxation makes it the more neces- sary that the field should be carefully sources of revenue may be found which it will be legitimate. and not bnrdenSome. 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 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 tenn of import duties. No serious dan. ger of foreign competition now threat. ems American industries. Our country has emerged from the war less dis turhed and less weakened than any of the European countries which are GlIr 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 al, tention. The experiences of the war