Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-05-20
TEXT OF EXECUTIVE
MESSAGE SENT CONGRESS
Continued from First Page.)

Continued from. First Page.)
that prosperity in one part of the
world ministers to prosperity every
where; that there is in a very true
sense a solidarity Of interest through-
out the world of enterprise, and that
our dealings with the countries that
have need Of our products and our
money will teach them to deem us
more than ever friends whose neces-
stiles we seek in the right way to
serve ----.
Merchant Marine.
Our new merchant ships, which
have in some quarters oeen feared
as destructive rivals, may prove
helpful rivals, rather, and common
servants. very much needed and
very welcome. Our great shipyards.
new and old, will be SO opened to
the use of the world that they will
prove Immensely seFviceable to
every maritime people in restoring,
much more rapidly than would
otherwise have been possible, tho
: tonnage wantonly destroyed in the
. war l. have only IT, suggest that.
there are many points at which we
, can facilitate American enterprise
in foreign trade by opportune leg
: ish tioa ard. MAKE 1T easy for
American merchants to go where
they will be welcomed as friends
rather than as dreaded antago-
nists. America has a great and
honorable service to perform in
bringing the commercial and in
dustriai undertakings of the world
back to their old scope and swing
again. and putting a solid struc-
. ture Of credit under them. All our
legislation should be friendly to
such plans and purposes.
Revision Of Taxes.
And credit and enterprise alike will
be quickened by timely and helpful
legislation with regard to taxation. !
hope that the Congress will find II
possible to undertake an early recon.
liberation Of federal taxes. in order
to make our system OF taxation more
simple and easy of administration
and tho taxes themselves as little
burdensome as they can be made and
yet suface to support the government
and meet all its obligations. The fig
ures to which those obligations have
arisen are very great indeed, but they
are not no great a. to make It din.
cult for the nation to meet them, and
meet them. perhaps. in q single gene
ration. by taxes which will neithe,
crush nor discourage. These are moi
SO great as they seem, not so grea,
as the immense sums we have had
to borrow, added to the immense sum-
We have 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, consti.
tute assets, net liabilities, and will
not have to be taken care of by oul
taxpayers.
Incomes and Excess Profits.
Tho main thing we shall have te
as lightly as possible on the produc'
tive resources Of the country, thai
its rates shall be stable, and that /,
shall be constant in its revenue-yield.
ing power. We have found the maiI
sources from which IT must be drawn
I take it for granted that its main
stays will henceforth be the income
tax. the excess profits tax. and thu
estate tax. All these can SO be ad.
justed to yield constant and adequate
returns and yet not constitute toe
grievous burden on the taxpayer. A
revision of the income tax has al.
ready been provided for by the act Of
1913. but I think you will find that
further changes can be made to ad'
both in the. rates OF the tai
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
expenses of the war had to be borne
but 1t should be made the basis Of Z
permanent system which will reach
undue profits without discouragine
the enterprise and activity Of oul
business men. The tax on Entertained
ought. no doubt, to be reconsiderec
in its relation to the fiscal system:
of the several states, but 1t certainly
ought to remain a permanent part Of
the fiscal. system of the federal gov
ernment also.
Taxes to Be Eliminated.
Many Of the minor taxes provided
for in the revenue legislation OF ls1i
and 1913. though no doubt made nee.
essary by the pressing Necessities Of
the war time. can hardly ind SUM-
oient justification under the easiel
circumstances Of peaca. and can nov
happily be got RID OF Among these
hone v0O will aoraa fha ov.