Milford chronicle., 1920-12-03
THE PROBLEM OF TAXATION

Washington - Especial Correspond
ence) The revision of the Federal
I tax laws is an absorbing topic as the
I time for reconstruction of the Gov
ernment under Republican auspices
approaches, and it will receive in
creasing attention until the extra ses-
sion of Congress which President
elect Harding has intimated he will
call for next year is convened and
starts upon its tasks. Already COM
mittee of financial experts and busi-
ness men are at work upon suggest
ed tax reforms. the Secretary of the
Treasury is preparing recOmmenda-
tions for inclusion in his annual re-
port, and the entire subject is receiv-
ing the close attention that ii de-
serves. All seem to agree that the ex-
cess profits tax should be abolished
and that certain changes should be
made in the income tax, but there ap-
pears to be equal agreement that if
certain taxes are eliminated others
must be designed to take their places.
Each substitution that has been sug-
gested has its own advocates who
claim special advantages for it, but
they all take money in one way or
another from the American people.
However ingenious these suggested
changes may be. they are merely re-
arrangements of a burden that the
nation now bears.
The people will insist that the eff
cheney of the Government shall be
maintained through the expenditure
sufficient funds for that purpose, but |
they are hoping that way will be
found at the same time actually to |
reduce the tax burden. That is one
of the reasons for the record-break- |
ing Harding plurality. The Republi- |
can party has the confidence of the |
people now and it can be preserved |
by realizing their hopes for real tax
reduction.
Before approaching the revenue
question let us see what are likely |
to be the actual needs of the Govern /
ment for the fiscal year ending June |
30, 1922. The official estimates for that /
period will not be made public until |
December 6, when Congress recon- /
venes, but by reference to the appro- |
priations actually made for the pres
ent fiscal year an approximate figure |
can be reacher The total appropria- |
tiOns for 1921 were about S4,S60,00O,- |
0OO OF that sum s725,000,000 was for
various payments to the railroads /
which will not have to be met again,
and S4S7 100000 was for deficiencies
in appropriations for previous years.
Those deficits were occasioned during
the uncertain period of the war, by
the reckless carelessness of the Dem
ocratic administration. There will
always be deficiencies, but a liberal
estimate for the next fiscal year
would be S200,00O,000 Subtracung the
payments and excess deficien-
cies from the total appropriations we
have S3,S4S. 100000 as a liberal esti-
mate of the cost of the Government
for the fiscal year, 1922.
As available resurces for meeting
.hese expenditures let us consider the
|. Income tax (estimate
of tax committee of
National n dustrial
Conference Board) 81 $3.50, 100000
;. Other internal revenue
taxes, including excess
profits (same source)- 2,650,OO0,0O
!. Miscellaneous Ga con-
servative estimate bas-
ed on figures for 1919
and including tolls,
fees, etc, but not in l
terest or principal pay
ments on foreign obli-
gations) -- 2OO,OOO,OOO t
B. Postal revenues (esti- q
mate of tax committee) 462,000,000 a
Customs under an Is I
per cent tariff----- 600,000,000 e
Interest ON foreign OBJ
legations .-.---..- 5OO,OOOOOO t
Collection of back /
taxes -----.-.-.--...-..-- 4OO,OOO,OO t
r