Daily capital journal. (Salem, Oregon) 1903-1919, 1919-05-20

immense sums we have had to borrow,
added to the immense sums we have had
to raise by taxation would seem to indi-
cate; for very large proportion oi
those sums were raised in order that
they might be loaned TO the govern
ments with which we are associated in
the wTr and those loans viii, OF course,
eOntitute assets, not liabilities, and will
not have to be taken care of by our tax
payers.
Lighter Industry Tax.
The main thing we shall have to care
for is that our taxation shall rest as
lightly as possible on the productive re-
sources of the country, that its rates
shall be stable and that it shall be con.
stant in its revenue yielding power. We
have found the main sources from which
it must be drawn. | take it for granted
that its mainstays will heneefOrth be
the income tax, the excess proIns Ih.
and the estate tax. All these can so be
adjusted to yield constant and adequate
returns and vet not constitute q too
/ gricvous burden on the taxpayer. A re-
vision of the income tax has already
been provided for by the act Of 1918,
lbut | think you will find that further
changes can be made to advantage both
in the rates. of the tax and in the metn.
cd Of its collection.A The excess plvs'
its tax ned not long be maintained at
the rates which were necessary while
/ the enormous expenses of the war had
TO be borne; but il should be made the
basis of a permanent system which will
reach undue profits without discourag-
ing the enterprise and activity of our
business men, The ta@ on inheritance
ought, no doubt to be reeonsidered in
its relation to the fiscal systems OF the
several states, but it certainly ought to
remain permanent part of the fiscal
system Of the federal government also,
War Taxes May Go.
Many Of the minor taxes provided for
in the revenue legislation of 1917 anc
1918, though no doubt made necessary
by the pressing necessities Of the war
time, can hardly find sufficient justi.
fication under the easier circumstances
of peace and can now happily be got rid
Of. Among these, hope you will agree,
are the exeises upon various manufae
lures and the taxes upon retail sales.
They are unequal in the incidence on
different industries and on different in
diyiduals. Their collection is difficult
and expensive. Those which arc levied
upon articles sold at retail are largely
evaded by the readiustment Of retail
prices. On the other hand ! should as
sumo that it is expedient to maintain
considerable range of indirect taxes;
and the fact that alcoholic liquors will
presently no longer afford a source of
revenue by taxation makes it the more
necessary that the field should be care.
fully re-establishcd in order that equiv.
elent sources Of revenue may be found
which it 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 | can
| can only suggest the lines of perma.
Inent and workable system and the plae.
ing of the taxes where they will least
hamper the life of the people.
Tariff Thought Suitable.
There is, fortunately, no occasion fol
undertaking in the immediate future
any general revision of our system OF
import duties. No serious danger of
foreign competition now threatens
American industries. Our country has
emerged from the war less disturbed
and less weakened than any Of the
European countries which are our com
petitors in manufacture. Their inous
trial establishments have been subject
ed to greater strain than ours, their la
Dor forced TO a more serious disorganiza
tion, and this is clearly not the time Ia
seek an organized advantage. The work
of mere reconstruction will, | am afraid
tax tie capacity and the resources OF
their people for years TO come. So far
from there being any danger or need
Of aeeentuated foreign competition, II IS
likely that the conditions Of tho next
few years will greatly facilitate the
marketing Of American manufacture,
abroad. Least Of all, should we depart
from the policy adopted in the tariff act
of 1913, of permitting the free enrry
into the United States Of the raw ma
terials needed TO supplement and enrich
our own abundant supplies.
Protection for Dye Stuffs.
Nevertheless, there are parts Of oul
tariff system which need prompi 49,.
tion. The experiences Of the war have
lmadc it plain that in some cases toe
great reliance of foreign supply is dan
gcrous and that in determining certain
parts Of our tariff policy domestic con
sideration must be borne in mind which
are political as well as economic. Among
the industries 70 which special eonsid
/ Il l. =.