Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-05-25
EASING OF TAX BURDEN
A HARD NUT FOR G. O.P.
Republicans in Congress Accept the Presi-
dents Message as Direct Chal-
- lenge for Early Action. {.

or imports, particularly the dyes and
other Industries which have been de-
veloped in the United States during
the war. ~
The republicans who are favoring
revision of the revenue law at the
present session for the purpose OF
reducing taxation are demanding also
| that the governments expenditures
be curtailed without delay. They in
sist that for the last two years the
country has been engaged in one wild
revel of extravaganza. The best way
to put an end to burdens of taxa
ton. they say. is to put an end to
| extravaganza. The money will not
, be needed to pay the governments
bills in that event. In this connec-
Jersey. republican, said:
Demands Rigid Economy. =
THE President wants to reduce tax
alton by a method. This cannot be
done. 1t must be reduced by rigid
economy. The many bureaus. spend
ing millions uselessly, must be cur
tailed. The federal government must
abandon spending money for expert
mental public improvements and
drawing on the taxing resources Of
the states to pay the~bill."
Revision of the tariff SO as to pro-
tect American industry and to i'm
crease revenues from this source to-
gether with a reduction and equal
zation OF the Internal revenue laws
were contained in the legislative pro-
gram adopted by the republican con-
ference of the House a week ago. The
actual provisions of law to accom-
plish these results have yet to be
| worked out.
The country is going to need some
four or five billions of dollars annual-
ly in revenue to meet it's expenses.
| even with strict economy, as many of
the members of Congress see it. 1t
has acquired a tremendous war debt
and it must be cared for. Interest
must be paid on the Indebtedness and
some plan adopted for eventually re-
firing the vast amount of government
bonds which have been issued. The
President has suggested in his mes
sage that possibly this indebtedness
should be wiped out in generation.
There are those who take exception
to this suggestion. Senator McCum-
4 her. for instance. 10 inclined TO be-
4 iieve that the present generation u
tantitlsd to- some relief from the
grinding burden. Of taxation and that
it would not be amiss IL q second and
third generation did their part in pay
| ing off the war debt. which has been
| incurred in their interest as well m
in the interest of the men and women
Of today.
Sinking Fund Not Favored.
For this reason he does not take
kindly to the suggestion that a sink
ing fund be established to pay on the
liberty bonds issued by the govern
! ment. He believes that it would be
a better method if the government
should buy up these bonds when it has
| surplus cash on hand and gradually
retire them in that way. He called
attention to the fact that after the
civil war. when the national debt was
inflnitesimal as compared to. the debt
today, a law had been passed for
sinking fund, but that it had never
| been called into operation, the gov
eminent finding other ways Of hnanc-
ing and retiring it's indebtedness. Fvo
generations had come and gone. he
said, and approximately only threef
quarters of the civil debt had been
paid off by the government. the other
quarter remaining outstanding in va
rious government securities.
One matter to which the republicans
call attention is that the revenue
to be derived from the imposition of
duties on imports, while it may run
into the hundreds of millions, must
necessarily be only a small part of
the money which has to be raised by
the government for years to come.
The internal revenue taxes-the in
come tax. the excess profits tax and
the inheritance tax-will play the /,
lions part in raising the revenue. The
tariff question, therefore, has become
tecting American industries than
from the view of raising revenue
They take exception to the Presi-
dents suggestion that there il no
occasion for undertaking in the i'm
mediate future any general revision
Of the tariff. If they start on the tar<
if revision there is likely to be .
thoroughgoing protectionist bill
brought in. The progressive senti-
ment, however. is too strong among
the republicans to permit tariff laws,
various interests such as obtained in
previous years. IA
~
Industries for Defense.
The experiences through which the
United States has recently passed
proves that it is wisdom for a nation
to develop industries. behind q pro-
tective tariff wall il necessary, 20
that in time Of war it may not be
called upon to depend upon imports
Of materials vital to carrying on the
war. The dyestuffs used in this coun-
try prior to the war were practically
all imported. Nitrates were largely
imported for the production OF ex-
plosives and the manufacture of fer
tilizers. .,
The country set to work to pro-
duce it's own dyes, its own nitratsS
and explosives and its own potash,
It succeeded in a large measure. But
these industries could not live now
in competition withTthe similar pred