New-York tribune., 1920-12-20
Fight 8 Forecast
Over Sale and
Profits Taxes
Differences of Opinion in
Congress on Best Means
to Go About Revision Nav
Cause a Long Contest
Consumers on Defensive
Charge Efforts to Unload
Burden on Them to Spare
Large Business Concerns

o'r Ths T.1hpne's Washington Y, ~eau
ABSTRACTION, Dec. 13-Wlde diff
ferences OF opinion are becoming ap-
parent among members of Congress as
to how the tax laws should be revised
in the forthcoming extra session
these differences reflect similar diff
ferences of view in the country at
large 1t is becoming obvious that
when the extra session of the new
Congress and the new Administration
undertake 70 frame q taxation pro-
gramme to take the place of the pres
ent statutes they will face great diff
cuties
Not only will the solution of the tax
problem be extremely difficult, but
there are all sorts of political posi-
bilities in the prospective revision, in
the opinion of numerous members of
Congress. Some at least of the Re-
u blican leaders recognize that the
task is fraught with no small danger
C.. serious dissensons among the Re-
pnbicans in Congress. They point out
that while the tariff was the bone of
contention which caused much fac
tional trouble in the early part of the
Taft administration, the solution of
tariff revision at the outset of the
Harding administration will doubtless
be much easier than the solution Of
tax revision
Sentiment for repeal Of the excess
profits tax is extremely strong in Con-
gress. but there is wide divergence of
opinion as to what should take its
place. Champions of the consumer in
Congress are already charging that
there is distinct movement on foot
to unload the burden of taxation just
as far as poss shle on the consumer and
TO be as Ienent as possible on large
business concerns and persons with
large incomes. They say they will
fight any such movement to the limit
The proposed sales tax is meeting op-
position of q pronounced sort, on the
ground that 1t is only tax on the
consumer, and that the consuming
pablo IN the long run must pay it.
Green Says Sales Tax Win Fail
Representative Green, of Iowa, one
Of the leading Republican members of
the House Ways and Means Commit
tee. predicted to-day that the advocates
Of salcs tax would be disappointed,
and that the substitute for the excess
profits tax when general revision of
tax laws was undertaken would be some
9tner form OF tax on corporations.
EepresentS Stive Green said:
While the Wa and Means Commit
tee Is conducting hearings with refer
encc TO the internal revenues with q
view 10 the revision of our internal
revenue taxes, doubt whether it is
practical or even possible to make any
lt<al. r. n q IN hoc
tore the time now fixed for fling re-
turns for this calendar year. The
treasury Department is now preparing
ll@ forms tor lhe tax returns, and as
yet we can only make q guess at the
amount OF the appropriations which
VIII be made for the current fiscal year.
hen the new revenue system is
framed the excess profits tax will prob
ably be repealed. 1t does not work out
equitably and he difficult es of enforc-
ing it have brought the collecting
forces to the verge of breaking down
A large portion of the 1917 returns for
TINS taN has not yet been audited. and
the auditing force, instead of gaining.
Is getting further behind But those
who nave expected a sales tax to be en-
acted in the place Of the excess profits
tax are, IN my opinion, doomed to dis
appointments The substitute for the
c"NcSo piOltS TAX Will be some other
form OF tax upon corporations, either
tax upon the net income or tax
upon the undivided profits, which may
or may not be progressive in its rates.
Surtax Problem
The Secretary of the Treasury also
proposes to reduce the surtaxes on in
dividual Incomes, which he believes
would bring in more revenue if low
cred. 1t Is true that the tax returns
snow that enormous sums are being in
vested IN tax-exempt securities, buv
1ne lnducement to make such invest
mentS would be lessened by bill