Gilpin observer., 1920-12-30
CONGRESS HAS MUCH TO CON.
TEND WITH TO RELIEVE
DiscoNTENT.
CONSUMER NEEDS AID
soLONS CONFRONTED BY DE
MAND FOR RELIEF FROM
HEAVY LEvlES.
twe.,esn Newspaper Union News set,iee.)

NWeslefh newspaper Union NEWS kefSlcc)
Washington, Dec. 29.-In Senator
Joseph S. Frelinghuysen's speech in
the Senate outlining the tasks ahead
of the G. o. P. the eighth paragraph in
the program Of the party duties reads
like this:
Remedy the tax situation by TAX
ing the tax from small incomes, re-
move surplus profits tax and surtaxes,
and gain more revenue by a protective
tariff and a tax on manufacturers
sales"
Prior to the Republican convention
most of the candidates for the NOM
ination dwelt frequently in their
speeches on the necessity for the re-
moval Of the excess profits tax. 1t is
known that Senator Harding believes
that this should be done and that his
view is taken by great many of the
Republican senator's and representa-
tives who in the next Congress will
have to deal with the proposition of
repeal.
The excess profits tax as held by
those who oppose it, brings in large
amount of revenue to the government.
Mr.. Houston has just said something
concerning some hundreds of millions,
or was it billions of deficit. If the
excess profit tax is removed, as the
general feeling seems to be that it
should be removed, by what means is
the income now derived from it to be
replaced?
This proposition IS worrying the
Republican leaders today, worrying
them in advance of the time when the
solution of the problem is to be
sought by legislation Mr.. Frelinghuy-
sen says that more revenue is to be
gained by protective tariff and tax
on manufacturers sales. There are
Republicans who say that these are
well enough as propositions to be con-
sidered, but that do what the Repub-
lican party can do toward increasing
the revenue in these ways there seems
to be nothing In what already has been
suggested by which the consumer will
not be compelled to bear the ultimate
burden.
The ultimate consumer" came into
prominence specifically as such by
name during the Taft administration.
He is still living. Still bearing his
burdens and still kicking feebly
against the pricks. No one in Congress
seems to be at all friendly toward the
excess profits tax. The desire is that
1T be done to death, but how to do it to
death without making q DothebOys
Hall pupil out of the ultimate consum-
er nobody seems to know, although an
effort is to be made to accomplish the
end.
In every way it is apparent that the
Republican party wants to reduce tax
es, but every way thus far suggested,
while it seems to lead into the field of
lower taxation, seemingly leads also
into the field Of higher prices for ulti-
mate consumer.
They believe that psychologically
man would rather spend his money
for necessaries at high price than
to pay it to the tax collector whose in
coming always casts forbidding
shadow across the threshold and
arouses resentment by his presence.
The economic legislation of the Re-
publican party is going to be one of
The people apparently take much more
interest in 1t than they do in the ulti-
mate decision Of the dominant ones
concerning the form which the inter-
national relations of the United States
must take on. .
Congress is apparently perfectly
willing to attempt to defy the law Of
SllDDly and demand If feels seeming.
ly, that it must do something to lift
the intolerable burden of taxation.
Some of the members say that the
saner thing to do is to cut off the tax
on small incomes and thus allow the
man of small wage or small salary to
save enough money at one end to ena-
bic him to pay higher prices for the
neceSSarieS at the other end