Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-12-06
The Tariff and Taxation

{ OK many weeks Republican leaders OF
the high protectionist brand have been
hoidlng out the promise TO the country OF
substantial relief from prevailing tax sched-
uicS through the enactment OF new tariff
act which will produce approximately a bill
lion dollars. With this revenue assured. i,
Is argued that such burdensomc lcyics as
the excess profits tax and the excise taxes
upon minor commodities OF the soda water
class may be repealed.
IL has been suspected in many quarters
that this was merely cleverly conceived
scheme on the part OF high tariff evangels
10 reconcile the American people to n pro-
tectionist policy more sweeping than ;tlv
ever enacted by this or any other govern
ment. Those interests which crave this pro
lection must have become convinced that
the country would not stand for a tariff
three times as high as that now in effect cy-
cept In the fulfilled hope of throwing off the
present taxes upon business earnings AS n
move in the direction OF such "A system of
duties the promise OF q repeal of the profits
tax is held out
IL must be obvious TO any thoughtful stu
dent OF economies that the tariff is produc-
i've or government revenue only when there
are imports upon which duty is paid II
must be equally obvious that when tho tarjf;
is too high dutiable imports will cease to
Tow into this country. a tariG wall which
Is reared high enough to net the government
billion dollars. on paper may prove to be
so hish as to become literally prohib,ive
In that event it would net the government
practically no revenue at ALL hut il would
i nevertheless AFFORD domestic Industries "a
complete monopoly Of the American mar
kets.
Al the present time the tariff Yields some
thing like $3.50, 900 900 or about oncthird
OF the amount which the billion-dollar pro-
lcctionists want. This tariff according 10
!. some authorities, is as high as the traffic
can stand and II the prevailing duties are
/ trcDlcd, foreign producers will be virtually
barred from doing business in America n
This Is what the protcctionists arc driving at
they would do well to keep that fact care
! 1uiy hidden from the American consumer.
otherwise they will find themselves facing
me righteous wrath OF the nation
AS has been repeatedly stated in almost
| every newspaper in the country, tho business
| interests OF the United States woujd NOT
only welcome, but imporing Congress-
! for the repeal of the profits tax. which oll
| interests now agree is premium placed bv
| the government upon success But it is 70
| be doubted IL any other than the most con
scicnceless standpatters would dare offer as
substitute Tor the profits tax tariff
which would drive the last foreign CONNECT
tor out Of the markets OF the country
| Already it is announced that n small
group OF Republican leaders. headed Inv
| Senator Watson, OF Indiana, Is prcpar;pp to
bring forward measure repeating the ex
cess prohts tax at the short session of Con-
gress. provided tariff bill can be passed at
the same time which will make up the de-
nett IN revenues which would be incurred.
1t must be manifest to Congress. ~ not n
the country at large, that this IS ,ot,I,v -,
| practicable. No sufficient survey ~ n
business conditions Of the country So rocos-
sary to j tariff revision can be made IN :,
few weeks time. That is a job OF eir,n,ic
magnitude and cannot be completed oycr.
night.