The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-08-08
COMMITTEE DEFERS REVENUE BILL TILL NEXT MONDAY

stock paid si.S57 federal taxes and 81 400
to state, county and municipality. lie
said if taxes are much further increased,
1t will become so burdensome that there
will be no incentive to try to earn any
thing.
He said that if more money was needed
by the state. the rate or valuations should
be increased, that the people did not OBJ
Ject to paying just taxes.
j. L. Bedside of Mobile said the people
before the committee today did not come
in response to the saying that you've
got money, hand it over" He declared
the levying of an income tax sets a bad
precedent, and that the ad valorem tax
was the fair and proper way for state
to raise its taxes. He said a fair ad
valorem tax will enable the county to
maintain its roads and its schools with
out any further special taxes.
Special taxes he said, breed ill-will
among the people of a community.
The burden does not and cannot be
made to fall evenly and fairly on all per-
sons, he said The outsider coming here
he said, first wants to know what taxes
he will have to pay and when the many
kinds are enumerated to him he refuses
to invest. A straight ad valorem tax at
so, 20 or 100 per cent, he said, was fair
and enabled every person to know just
what he would have to pay.
SUFFER FROM BURDENS
John DUR of Montgomery took up the
excess profits section of the revenue bill
He reviewed briefly the various federal
taxes and declared that the people and es
pecially corporations are suffering from
excessive tax burdens. He said the gov
eminent in arriving at the excess profits
tax has taken the average earnings for
the three years next preceding the war
al tod hot dn110
said, would buy just about half as much
as before the war. The uncertainty OF
these taxes he said. made it impossible
for a merchant to know what he would
have to pay for his merchandise month
or two months hence. and that manufac-
turers organized with small capital had
to go into the market and lay in large
supplies of materials and while making
them into merchandise don't know what
price he will have to sell at. He said the
country is suffering from initiation and II
a person or corporation is fortunate
enough to make a little profit, he should
be allowed to put a little aside for the
emergency that may arise at any time.
H. M IIobbie of Montgomery of the
H. NJ Hobbie Grocery Co, said his cor
poration was built up by earnings eX-
tending over a period of many years, and
is owned by local people.
The national government spent money
lavishly it had a right to spend lavishly,
because by so doing it saved time and
lives; he said and piled up an enormous
debt. He said the government raised
S, 600, 00O 900 in taxes last year, but with
the war emergency over this was re-
duced to 100000 600 Keep on piling up
taxes, he said, business will be killed.
and kill business and the country will
be thrown into socialism and from So
cialism to bOlsheVisu.
PEOPLE MUST PAY
They say corporations will pay this tax
but he showed this was erroneous. He
cited two corporations in which he is in
terested one with comparatively large
capitalization that did not have to pay
federal excess tax because the company
did not earn more than the per cent
allowed by law. The other company, or
ganized by men with small capital. They
got into the so per cent excess profits
tax class, not because their earnings
were large, but because their money
capital was small.
Somebody is getting ready for a JOY
ride he said, at the expense of the lit
tie corporations, and people of small
capital. He declared there was no neces-
slty or excuse for the excess profits tax.
He said it is claimed the farmers will
not have to pay the excess profits tax
Referring to the remand of railroad labor
organizations for increased wages he de.
clared the President may have displayed
good policy in passing the matter on to
Congress, but he lacked manhood
| If the increased wages are allowed the
| railroad men Mr.. Hobbie said everybody
in the nation will have to pay more for
what he consumes and in that way ev-
cry one will contribute towards this
tax.