The Washington herald., 1920-10-22
ARTICLE VI.

ARTICLE VI.
No remedy for the high cost of
living and the other abnormal con-
ditions which are weighing upon
the country can be effective which
does not include a wise and coura-
geous revision of our existing taxa
tIon system. Such a revision is not
really a task of great difficulty.
For a country as immensely rich
and mtrinsicaIIy as little burdened,
relatively speaking, as ours, it is
not a very hard prObleIa tC raise bY
taxation the sum which the econom-
ical administration of our govern
ment requires, without causing the
sinister effects that our present tax
alton has brought about, indeed,
without causing any serious eco
nOmic disturbance whatever. And
that should be feasible without in
any way impairing the fortunate
and desirable circumstance that in
our country those of small or mod
crate means are taxed far less, both
in direct and indirect taxation, than
AAAcg are IN any OlntT Oh the lcdulnB
countries. The alternative is not to
burden unduly either business or
the people. The idea is not of re-
lieIng the former at the expense
OF The latter. The end which should
and can be attained by proceeding
wisely is to benefit both business
and the people.
Congress Action Needed.
war is over 1 believe that this sub
jeCt in its entirety should be sub
jected to- unprejudiced and compe-
tent critical review. Good intentions
are not a sufficient qualification for
the task of devising a plan and
methods Of taxation to balance our
vast expenditures Exact thinking
= required, technical capacity, adc -
quate knowledge and the courage
not to shrink from unpala.ahis con-
ClusiOns. Economic principles dre
stubborn things and will not permit
themselves to be either disregarded
or Oyerridden or dealt with emo
liCnalIy.
II England a nonpolit,ca; COM
rittee was appointed recently Oy
the government to study the effects
Of the various kinds of taxes which
five years, and to make recommend
ations to Parliament based upon
such study. II seems to me that
similar a~tirn by Congress would
he wise and timely.
small committee of well in
formed men OF different callings,
approaching their task free from
political, social and sectional bias,
would not ind it a formidable un-
dertaking to evolve measure
which, while fully responsive to the
dictates Of equity and social JUS
tice, would produce no less revenue
if needed-than the taxation now
in force, and yet would be less bur-
densOme upon the country, less
hamperfng to enterprise, and far
less productive of economic de-
rangement.
Such a committee as I have sug-
gested should. 1 believe, be COM
posed of possibly six or seven men,
= bers of the Ways and Means Com
mittee Of the House and the Finance
Committee of the Senate, together
with. say, five duly qualified nom
officeholding citizens.
1t should be appointed by and
should report to. not the Executive,
but Congress as represented by the
Speaker Of the House and the presi-
dent Of the Senate.
Problem for Many Men.
It would exceed the bounds of
my competence and the limitations
of my competence were 1 to at
tempt to outline a scheme Of taxa
tiOn to take the place of the exist
ing one. No one man ought to as
sumo to do So Too many considera-
tions and elements are involved on
which no one man Is authoritatiyely
informed. 1t is a problem for ca
number of men from different sec
tions of the country and with diff
ferent affiliations to study with the
utmost care and thoroughness, and
then, by comparison of views, with
one another, to clear their own
minds and to evolve a comprehen-
sive scheme which shall embody
the result thus arrived at. It seems
to me that il is only in some such
way that we shall attain a fiscal
program economically sound. So
cially just and properly balanced.
However, merely to indicate a
wfew definite suggestions for a pro-
gram Of taxation, I would state the
following:
First The excess profits tax
should be abolished or essentially
modified and some other method de-
vised to tax corporate profits.
1 may mention that I am not op-
posed to the theory of an excess
profits tax On the contrary, believe
that theory has much to recommend
IL. But such a tax. even though IL
were greatly improved-as it can be
over the crude system of ours, is
Of necessity so complex. so liable
in its effects to impede trade and
burden the public, and requires so
competent and perfected and steady
a machinery Of administration. that,
for practical purposes IL is not.
believe, adapted to and not salts
factorily workable in this country
One of the essentials of wise tax
alton Is simplicity of method
Nothing tends more to create. sui
len animosity against fiscal meas
ures. nothing is more apt to cause
saan to feel justified in his own
conscience to give himself the
benefit OF any doubt or technical
loophole. than to be compelled, in
, addition to paying heavy taxes. to
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