The Washington herald., 1920-02-29

volume of commodities changing
hands annually would yield so vast
"a revenue that il would enable the
excess profit tax and practically all
other abnormal business taxes lex
cept perhaps the corporate income
taxi to be eliminated. surtaxes on
individual incomes to be greatly re-
duced and Federal taxation of in
comes up TO, say $4,000, to be aboI-
ished altogether.
Imitation and Unfairness Eliminated.
The result would be a great re-
duction in the cumulative percent
ages with which prices are now
, loaded to meet taxation; that Is to
say. there would be bound to en-
sue lowering of prices all around.
Competition would see to that. II,
contrary to all expectation and prec-
edent. il should not do so, other
agencies will.
Another advantage of the sales
tax is the great simplicity of its
working and the definIteness of its
application, especially as compared
TO the NeXatious, uneven and unfair
working OF the excess profit tax.
Furthermore, to collect such tax
requires little expense. no compIi-
! Gated bookkeeping. no intricate
schedules, no lawyers and account
ants services, and no army of gov
ernment employees. 1t can be in
creased or decreased in short order
and without any resulting economic
, disturbance. according to the finan-
cial needs of the Government.
III l per cent tax produces too
! much, 1t is very simple process to
decrease 1T by an appropriate per-
centage. If 1t produces too little a
small additional percentage will
yield the sum needed.
/ Two Years OF Inconsistency.
I'VE have had a two-years' test
now of a scheme for raising reve-
nue. which Is unscientific, inconsist-
ent and ill-designed and has as its
principal characteristic the taxa
ton of business and constructively
employed capital. on a scale without
a parallel anywhere. The result is
writ large in the high cost of liv-
ing. industrial and economic disloca-
tion and social discontent-for all
strongly contributOry, though, of
course, not the sole, cause.
I'm common with all right think
ing men, desire very earnestly and
sincerely to see the burdens of the
poor and those of moderate means
frightened to the utmost extent pos
sible.
IL realize but too we'll that the
! load weighing upon those whose in
come has not kept pace with the in
creased cost of living has become
almost intolerable. i welcome ev-
cry means compatible with sober
| reason and the test of experience
and with national welfare, to rem
edy that situation, or at least to
mitigate it to the limit of our
ability.
Public Pays the Bill.
But 1 am entirely convinced that
crushing and bungling taxation OF
capital and industry is not the way
to accomplish that result. am
convinced, on the contrary, that
such taxation is bound to rebound
to the detriment of all the people.
"If our extreme surtaXes on in
comes. and our excess profit tax had
] the effect of breaking the vicious
circle of price-boosting and wage
boosting. IL these taxes had power
to eliminate or curb 'profiteering,'
much might be forgiven them.
But experience has proved that
not only have they no such effect
and no such power, but indeed they
have tended to greatly intensity
those evils To deal with these
Aoxious things, measures of quite
a different nature are required"