Albuquerque morning journal., 1919-05-31
MEMBER OF THE ASSOCIATED
DpEGG
TAx REDUCTIONS DIFFICULT.


Conservative senators and repre-
sentatfves in congress are not making
rash promises about sweeping reduc-
lions in taxation this year. There IS
snch n vast debt to be promptly paid
and such large interest payments TO
he provided, that cautious action Is
required.
As was announced by the treasury
prior to the last public loan, the gov
ernment must sell additional secun-
ties to the amount of $4,000. .OOO,OO
TO pay obligations already incurred
and to fall due during the fiscal year
ending with June of 1920. These Sc
curities are to be sold through banks,
and not by another public drive, as
announced by Secretary Glass some
time ago. This large sum has to be
paid out, in addition to S6,0OO,o 100000
taxes collected in the calendar year
1918. and estimated $4,000.000,00O to
be collected in the present calendar
year.
The estimate of 000,000,0O0 Sc
curitics necessary to be sold is based
on the amount of Liberty and Victory
bonds. totalng $25. 100000. The
total liabilities amount TO $33,OOO,OOO,-
O0O, not inclusive Of those which will
he taken care Of by taxation,
1t will take $3.50. 100000 to meet
bond interest this fiscal year, The
railway deficiency is expected to be
S1,0O0000,O 600 before the roads can
be passed back to owners. Another
billion will be needed to pay the army
and $500, 600 is asked for the
marines These are but some of the
items of expense for the year.
One of the ways and means COM
mittee says that some additional taxes
will be raised by tariff, if the president
will sign a measure for that purpose,
though no general tariff bill will be
put through until u regular session of
congress.
1t IS asserted that great economy
and care must be used to get through
the year even with taxation and sale
of securities already planned.
The committees of ways and means
are of the opinion that their work
mainly will be to revise. simplify and
equalize the taxes on incomes and ex-
cess profits, about which there is
much complaint from corporations,
individuals and PARTNERSHIPS as to al
legged determinations in the different
classes of business. s...t
Senator Smoot of the appropria
tions committee SAYS that taxes on
corporations for the year commencing
next January can be reduced one bill
lion dollars, reduction to about one
half of what they now are. but that
not soon can there be further reduc-
ton. He declares that the American
next quarter of a century when low
taxes will be the rule. with interest
charges amounting to from SS5O,O0O,-
900 to $500. 100000 a year
AS 10 letdll SdtCS ldAtS fludt dlf
proving SO annoying to merchants and
people generally. a simpler and more
economical and effective plan is pro-
posed to secure the revenue. The
present methods are discriminatory,
harassing and nagging. They cover
everything from an ice cream cone to
nearly every amusement INDUCED in
by the people and then half the neces-
sites of life. In the place of this sys-
] per cent tax on sales. This would
eliminate all the harassing discrim-
natory taxes and would raise 1880
100000 without working a hardship
on anybody, A tax of this kind in
many lines would not be charged up
TO the people--that is. not passed
along to the consumer; the business
would include it in its costs. just as
the item of advertising is included.
How soon revisions and adjustments
can be made is not prophesied, be-
cause there will have to be computa-
tions with the treasury and other de-
partments and conferences between
committees. Probably opposition and
obstruction in the senate, where a
party majority is small and division
within the majority about any detail,
may impede changes.