Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-12-30
FEDERAL TAXES.

Never has federal congress been confronted by
SO many and such intricate questions of finance as
now. The average man knows little about these
questions and unfortunately, the average member
of congress knows little more.
1t is deporable that in such crisis, our affairs
are not run by experts in the science of govern
ment Tens of millions of dollars could be saved
by efficiency methods.
But after all our problems grow more out
Of policies than out of methods. AS long as it is
our Motley to continue the expansion of our navy
and the maintenance of an immense war establish
ment we will have large factor in our total cost
of government on our hands, of which no experts in
finance can free us.
our enormous debt, caused by the war; will
continue to require its annual quota of interest
from which we can not escape, If it should
be decided to quit entirely or partially our policy
of pay-as-you-go and to defer for time the liqui-
dation of victory bonds and notes by new issue
of more remote maturity one cause OIL hsh
taxes, in the years just ahead, would be removed
If our comparatively short-time bond issues
were refunded into fifty-year bonds, another I'M
mediate burden would be removed because OF the
smaller annual sinking fund required for redemp-
ton.
BY such changes of policy the immediate de-
mands of the years of re-adjustment now facing us,
could be lessened. But in any event we are IN
evitably confronted by decade OF enormously
high taxes. Where to place them is the question
which worries congress Perhaps it is disturbed
less by the fear of njustces being done in the ad
iustment than by the of the consequences upon
the individual political careers of its members.
As we face the question there is one thing con-
corning which we need not mslead ourselves. 1t is
this: All taxes are paid by the ultimate consumers
only in times of stress under peculiar local
conditions, when the cost Of production plus
profit, not be eXacted from the consumer is
this not true.
To be a continuing business any concern must
normally, receive cost plus profit Whatever taxes
a business may be compelled to pay are a factor
in the of productions part of the overhead
OF doing business, and is added to the cost of the
goods.
Congress may talk to its satisfaction but 1t
will never escape this result. In fact we sus-
pect that the congressional leaders recognize this
situation To shift the burden from the sore spot is
about the only relief they hope to give. But
we will pay it just the To lessen the costs OF
government is the only way to really tighten the
load.
We can get some of the burden off from the
essentials and to the luNuries but If we over
burden the Injuries people will to buy them
and that source of revenue will thus cease. There is
a limit in all lines to chow much the traffic will
bear"
Perhaps some methods of taxation are more
embarrassing than others to the free flow of COM
merce Every man feels that the least embarrassing
tax is the one which hits the other fellow.
About our only for congratulaton, as we
groan under our load is that in spite of 1t all, we
are Better off than the people of Europe.
Some how or other have a fashion in AM
erica of thoughtesy trusting to luck and blunder-
ing ahead. Our good angel seems to be with u.s.
If we fall. cat-ke, light on our feet
More men should realize that self
governing people and that our problems will not
solve themselves.