The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-03-29
Demand for Simpler Taxes.

S~@~SA0 40 1850 800
mot one man in a hundred can sit
down and intelligently I'M out his In
come tax blank without consulting an
expert" declares the Wheeling Regis
ter Dem.). and there are thousands OF
people In the United States who will be
glad to indorse this testimony. Con-
sequently the recommendations Of Sec
rotary Of the Treasury Houston, that
our system of federal taxation be sim
fled meet with general approval, though
there is disagreement as to the precise
methods TO be substituted.
One of Mr.. Houston's most important
| recoSlmendations is to remove the ex-
cess profits tax altogether, and to es-
tablish in its place fiat tax OF 20 per
cent on undlstributed earnings. Fur
thermore, the same rate Of taxation
would apply to corporations, partner
ships and individuals Unfortunately.
zone well-known partnership" the New
York Times Ind. Dem) quotes Mr..
Houston as saying, paid 81, 125. 900 more
taxes than it would have paid IL the
business had been incorporated, and
verse effect in burdens on corpora
tions." Mr.. Houston, then, would make
1t impossible for a business to affect
its taxation status by incorporating,
or refusing to incorporate. ~
''If we can't have lower taxes. at
least let us have simpler taxes and less
Objectionable taxes" urges the Arizona
that believe a reduction Dis possible al
the same time, The Wheeling Intelli-
gencer (Rep.), calling attention to the
striking fact that 1.-The head of every
family is paying, directly or indirectly
$3.50 am Tally in taxes" believes that
rigid economy at Washington can re-
duce at least a portion of this" and
the Florida Times Union (Dem.) says:
'"The important thing is not reduc-
ton of taxes, but a reduction of ex-
penditures. 1t would be the height Of
folly to reduce taxes until the expendl-
lures of the government are cut to a
reasonable figure. . What changes
have occurred in conditions that make
| 1t necessary for the United States tc
spend more money than 1t spent six
years ago? The war is ended; it's ac-
tivities are finished---why keep on the
pay rolls OF the government men and
women whose services were needed
while the struggle was In progress, but
are not needed now?"
The New York Times (Rep.) agrees
that the immediate and fundamental
| need at Washington is to eliminate
deficits and balance the government
accounts. 1t will be time thereafter tc
simplify and reduce taxation or to con-
slider proper additions to our norma
Of the demand ia reduce taxes by issu-
ing more bonds, the Fargo Courier
News (Non. Par. League) prefers moi
to decrease taxes but to increase them
to a point where they will meet ex-
penditures," since bond issue 'in.
creases still further the imitation of the
currency, raises little higher all prices
and makes more probable final finan-
cial crash"
Yet one measure for increasing taxes
seems to be unpopular. That is the
proposal of Chairman Fordney, of the
ways and means committee, to remove
the exemption of $4,000 allowed to heads
! tons. 1T is doubtful" says the New
York Globe Gnd), if any such meas
ure. will be tolerated by public opin'
| ion" For, says the Globe
THE principle that great wealth
should pay not only greater sum blu,
fixed in the law and in the popular
consciousness. It is no argument
against the principle that it tends
though ever so slightly to penalizt
wealth. The income tax may, in fact
be used, II occasion ever arises, tt
prevent the dangerous accumulation Of
| wealth in a few hands that has ruined
more than one democratic state. 4.
It Is a weapon that in ordinary times
should be used sparingly, but one that
should be kept intact for all emergen'
cies."
The Wichita Eagle Qnd.) calls the
suggestion the ''rawest taxation pro-
posal ever put into words in all the
history of taxation" 1t means, says
the Eagle, 'if man makes only ST
month and has family of eight. tax
him exactly the same proportion of his
income as you levy against Henry T
Doherty, millionaire bachelor bunk mer-
chant" And the Canton News Qnd
Dem.) adds:
know lust how much attention the PEG.
pie are paying to their deliberations in
Washington, they may be able to learn
something by advocating the removal
Of the $4,000 exemption on incomes. II
will crate a political issue that will be
understood by practically every voter
who is earning his own living"