The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-11-16
Would Open Whole Subject.

sWoulO open WHOle 0uDJSCL
It is doubtful whether any salts
factory measure could be damned
Through in a week for 1t opens up
fhe whole subject Of taxation. The
most that might be accomplished Is
% simple amendment to existing reve-
niue laws giving the treasury depart
ment temporary discretion to act in
Eases wherein the facts prove a post
ponement Is absolutely essential to
prevent ruin. l-1
I Officials who administer the income
tax laws, however, are afraid of such
n provision. They say it win re-
guire a huge staff and lots of money
10 determine what Is a meritorious
case. The income tax bureau has a
hard time handling the present pro-
~ siops Of the law without new bur-
liens, yet officials recognize the emer-
sency and realize how serious the
consequences may be to the public If
many concerns are forced into bank
Tuptcy. Income tax executives say
ehey, are losing men as fast as they
employ new ones. Government sal
aries are not comparable to the at
1ractive offers made by the business
world. Yet the Republicans being
pledged to economy and the cutting
down OF governmental expenditures,
are not in the mood to increase the
government pay roll.
& AS a matter of fact, it is not the
fault of the government that busi-
ness houses have failed to accumu-
late a reserve wherewith to pay in
come taxes. Many corporations did
make provision for their December
taxes, but the money market became
so tight that they couldn't borrow
funds TO carry on the usual turn
over of their work. So they bor-
rowed from themselves-they used
up money that should have been
kept for income tax payments.
Daniel c. Roper, former commits
sioner of internal revenue, who IA
3vors postponing payment of income
taxes, insists that the government
should be amply protected if it re-
uuired an interest rate of 8 per
cent on deferred payments. This
would be higher than market rates
of interest and would tend to dis
courage too much borrowing from
corporation funds that should be set
aside for income tax payments.
Yet the entrance Of Uncle Sam
into the commercial world as a
lender of the money to private bust
mess concerns Is new thing and
fhe chief difficulty about it all is
the discrimination maze necessary
by such a step. Where~can the line
be drawn? Many an individual who
pays a small income tax will want
10 POSTPONE payment especially
since the rate of interest will not be
q disturbing factor to him.
Would Have to Cover ALI.
The legislation would have to be
sbroad enough to cover those who
nav small as well as large income
taxes. Treasury officials are not
prepared to say what the effect upon
government finance this postpone
.ment of revenue collection would
snake. The United States govern
ment has been counting upon col
dections from income taxes in order
TO pay it's own obligations.
! Congress will be plunged into
discussion of the whole tax problem
the moment the December session
begins. The excess profits tax Is
bound to be repealed or modified.
! lEven inside the government, where
%Shis tax has been looked upon as a
splendid money getter converts are
being made daily to the view that
the excess profits tax has outlived
it's usefulness. But what shall be
put on in its place? The tax ex-
perts are far from unanimous in
their suggestions. The demand of
few dozen concerns that they be
permitted to postpone payment OF
December taxes is but symptom Of
the intense agitation which is eX-
pected next month and throughout
the remainder of the year on the
subject of taxation. 1t will not be
q iNEN Na1E ad
even more time than the old con-
troversies on the tariff which used
to consume a whole session of con-
gress to the exclusion of other i'm
portant legislative proposals. More
individuals and more interests are
affected by taxation than by all the
tariff laws of history and the sums
to be raised nowadays are many
times greater than the largest tar
if law congress ever passed.
Copyright 1920, by David
IIaWrenCe.)