Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-01-20

balancing Uncle SANS books--aro d.
vided on this question A carcful poll
Of the members OF the committee, how
ever, indicates that the excess proftts
tax will continue during the present
year.
Tho reason given viii b. that the
billion and odd millions OF dollars It
brings In are needed 70 pay the gov
ernments bills. Another reason. not
so openly admitted, however. will be
that no substitute proposed seems likely
TO bring IN the revenue without arous-
Ing the resentment OF q large number
of voterA
As an indication Of what In coming.
Chairman F'ordney. Of the ways and
means committee. has introduced q bill
to repeal the excess profits tax. Repre-
sentative Copley, of Illinois, 10 prepar-
ing to lead fight for repeal on the
ground that IL il consumption tax
In reality and that the tax Is largely
responsible for the high cost Of living.
The reason fer delaying action for re-
peal OF the excess profits tax, which
seems to be influencing the majority OF
the ways and means committee and
CbUkINSs SthtlsAhst ~ peAASSA SsN -!
Representative Green, Of the Ninth
Iowa district, the ranking republican
member.
Must Find Substitute.
II am not in favor of the repeal OF
the excess profits tax Judge Green
declared today. unless some different
proposition than anything thus far
advanced is presented to take its place.
Any one who knows the condition OF
our public finances understands that
we are liable to have a bond Issue in
any event, and would be sure to have
1t II the excess profits tax Is repealed
without any equivalent being estao-
lished.
This tax produced last year about
81, 700 900 900, exceeding even the in
come tax returns. 1t does not always
work out equitably, but the same is true
to a greater or less degree OF all taxes.
II has the merit of being imposed only
on concerns which are so prosperous
that they are not only making profit,
but high profit. At least 10 per cent
must be made before any excess profits
tax is imposed. and IL the pre-war in
come Of 1911. 1919 and 1913 was larger
than the 10 per cent. the deduction VIII
be increased.
If a concern makes 20 per cent, the
greatest amount that could be taken as
a tax would be per cent. II 1t made
40 per cent. the highest tax would De
six per cent. This Is, OF course. on
the rates for the last calendar year,
which will be paid this year. and are
very much reduced from the previous
years.
The rate paid last year ran up to 50
per cent on the excess profits. ms
year the highest rate Is 40 PEI cent
The treasury estimates that si,lCo,oV0,-
900 Will be collected under the present
rates. I am doubtful If this much will
be received. because the profits assessed
will not be as large as the preceding
year
Two plans have been advanced as
substitutes for the excess profits meas
ure. One Is to increase the tax on the
lesser and intermediate incomes.
Such tax. In my opinion. would be
entirely burdensome.' Judge Green
said. He explained that those rscciV-
ing small incomes would have Just
cause Of complaint II assessed in peace
times heavier than during our great
war
The other alternative Is for fiat
tax on corporate incomes. In discuss
| ing this, Mr.. Green said: 1T is esti-
mated that a 20 per cent fat tax would
yield about the same amount as the
excess profits tax, but corporations
will, in any event. be required to pav
fat tax of 10 per cent on their net
incomes. This is per cent less than
last year, but If 20 per cent was added
to It. the tax would be not only bur-
densome In many cases but ineQuita Die
and unfair in the extreme"