Greenwood daily commonwealth. (Greenwood, Miss.) 1919-1926, 1920-03-22
WASHINGTON
NEWS LETTER
By The Washington Star
Copyright 1920.
= X y \ x X X X X X X

holder who find his income decreasing
and his domestic expenses increasing
IS the state of the United States gov
ernment at this time. Congress, as
the 'bread winner" for the govern
ment, the agency which must produce
the income, as we'll as regulate the ex-
penditures, faces the responsibility of
correcting this burning of the candle
at both ends. The old saying of "cut
the coat to suit the cloth" was we'll
enough in its way, but in this case the
coat has become larger and the bolt of
cloth suddenly smaller.
1t is well known, of course, that
prohibition has deprived the federal
treasury of a vast income, through
cutting off internal revenue taxes
Then came the Supreme Court decis-
ion declaring that stock dividends are
not income, and according to an es-
innate supplied Congress by Secre-
tary of the Treasury, this will lop off
another hundred million of dollars for
the year.
Meanwhile, expenses have grown.
The war left a monstrously enlarged
governmental service which can not
be reduced instantly. It is doubtful
if it will ever get back anywhere near
former figures. The public debt, up
on which interest must be paid, has
increased prodigiously. The soldiers
expect and the country desires to
make adequate financial acknowledge
ment, in part, of their sacrifices. To-
do it adequately will require at least
two billion dollars, which must be
raised by some form of taxation of
the people.
The appropriation committees of
Congress, in seeking to reduce expen-
ses, can curtail only in small percent
ages. The demands upon the treas
ury and the losses in revenues in
blocks of hundreds of millions.
To be sure, the curtailments in the
aggregate amount to an appreciable
sum, but at that they do not seem to
catch up with the liabilities Of the gov
ernment, increased by lessened in
come.
Your Uncle Sam is figuratively
walking the floor these nights, Won
dering show he is going to make both
ends meet" Perhaps some Of US have
experienced this sensation.
In short time it will be known,
approximately, what the income has
produced for this year. The returns
are expected to show some gratifying
surprises in the item of excess prof
it's, a goodly portion of which must
be handed over to the tax gatherer.
In the case of many large corpora
tions huge surpluses have been allow
ed to accumulate with the idea of dis
bursting them in the form of stock di-
vidends some time when tax collector
might not have such a good whack at
them. That time seems quite propit-
ious now, since the Supreme Court
has decided that they are not to be
classed as income and SO subject to
| tax.
But Congress already has its eye
upon them and steps are even now un-
der way to ascertain if they can not
be commandeered for Uncle Sans
use. There is one resolution in the
House introduced by Mr.. Little of
Kansas, directing the attorney gener-
al to begin injunction proceedings
against some of the big corporations
to restrain them from distributing
their surplus, with the idea of caus-
ing them to be turned into the treas
ury and held as a fund primarily for
the benefit of the soldiers.
Then there is bill by Mr.. Green OF
Iowa, providing that every corpora
ton making a distribution during the
wear 1920 of its capital stock to its
stockholders without receiving pay
ment therefor shall pay tax OF Ii
per cent of the face value Of the stock
so issued.
| The objection is raised to the lat
ter measure that it is retroactive ane
consequently unconstitutional. To tht
first named TCSOluGlO1l 1t 10 OOJ~~o~>
that it is practically confiscation 0.
accrued capital and that vt is not uni
form in application to all industries
So, for the present, the lawyers ar
wrangling among themselves as to tn
: legality and constitutionality OF tn
: plans, while big business and men Q
y large affairs are on the anxious bencl
f for fear they may have to give up val
$ ues which they hoped would be recog
e nized as their property, untaxabie.
y The ways and means committee Q
g the House is the body charged wit
n responsibility of raising revenues
i while a number Of committees ca
authorize their expenditure. This de
voted body Of men are now findln
= themselves besieged by clamorous pro
) test from all sides not to reach out !
el this direction for more taxes. It
2. a cry of eWoodman, spare my tree.
n But the harassed committee is unde
:. the necessity Of cutting down some