Evening star., 1920-11-28
BY i. A. FLEMING.

Necessity is hard taskmaster.
Necessity will force the cutting and
Blashing of congressional appropria-
tions to be acted upon by the in
coming Congress in a most drastic
manner.
Your Uncle Samuel will not have
the revenues to draw upon that he has
had for the last few years and will
have to cut his cloth proportionately.
For q year he has been the one big
borrower of the United States, issuing
Treasury certificates in lots of $780,
100000 to s40o.O0O.000 almost with
monthly regularity, in order to make
both ends meet.
Instalment payments OF the income
tax throughout the year have been
partially responsible for the certih-
cate issues, but the needs of the
government have had much to do
with the stringency in the money
market.
1t is scarcely within the possibili-
ties that any changes will be made
IN the income tax laws before the
advent of the new admlnistratlon IN
time to bring any relief to taxpay-
Fs during the last half OF the fiscal
scar ending June 20.
Great corporations have not accu-
mulated the profits of 1919 during
the current year. and If they did ac-
dar year the last few months has
wiped out large percentages of gains
and turned heavy losses on fnven-
tories.
Wall street accumulates the great
profits on bull markets. There has
been no bull market worthy the name
of Wall street in 1920. The bears
have made large profits. but nothing
like the great gains of the street In
1919.
featuring corporations has been seri-
Gus and will probably continue
throughout the year, with gradual ad-
justmenet of labor conditions to meet
the changed condition and with small
prospect Of much objection to the
needed clipping Of wages.
There will be no hesitation. when It
comes to pairing the appropriations in
Congress if the promises that have
been made are adhered to, as they
probably will be.
Work ON New Tax Laws.
1t is generally understood that as
soon as possible work will be started
on the revision of the tax laws; that
this will probably follow peace and
appropriations: but this revision is a
mans sized job and can only be put
over successfully after days and
weeks. mayhap months. Of ardent.
urgent, careful work. with econom-
zeal professors more or less banned.
The feeling is strong among busi-
ness men that the theorists should
give way in the next tax legislation
to the practical men of business.
profits tax will wait on the new law.
the existent vehicle being needed until
q better is found.
A Students Views.
J.. s. Bache, a student Of taxation,
suggests the following substitutes to
take the place of the excess prohts
taxes: Gross sales or turnover tax
ward revision of surtaxes on income,
as now enacted in law. and sponsored
by Secretary Houston. Mr.. Bache does
not believe that any republican
would support SUI ort..sns the Hanafnn action recon-
He believes that ian ordinary tax
on all incomes over $1,000 and q turn
over or sales tax Of 1 per cent would
more than raise the money necessary,
plus a reasonable protective tax. Mr..
erty issues as one OF the immediate
essentials.
Defending the sales tax, Mr.. Bache
has this to say:
ut is claimed that as l per cent is
added to the price of an article with
each movement that 1t makes in pass
ing on from the raw material stage
through the hands Of the manufac-
turer, jobber and retailer. the aggre-
gate tax in the end would be large.
diction whatever that those OF US
who have given our time and thought
to working out this tax have as yet
been unable to find an article on
last movement into the hands OF the
ultimate consumer . greater amount
than 3A per cent.
compare that with the amounts
which the last years Of taxation have
added to the cost OF living under the
excess profits tax"
An Interesting Letter.
w. r. Hibbs & Co. have re-
Gently issued one Of their special let
ters covering possibilities and even
Qualities in economies OF admfnistra-
ton and tax revision, which is both
patent and apropos at this time:
Congress will not meet until Mon
day, December s, but the most i'm
portant work Of the session began
today, November "a. when the sub
committees Of the committee on ap-
preparations began considering the
two great appropriation bills-legfs-
lative and sundry civil bills. The
estimates from the executive depart
ments are as large and In some cases
larger than for last year, showing
+, little, If any. disposition toward
economy.
This will increase the work OF the
committee on appropriations in sift-
ing out the unnecessary estimates
and reducing the others to meet the
estimates of revenue and fit the eco
nomic policy of the republican party
Chairman Good, who has charge
OF the sundry civil bill. is determined
to carry forward the policy inau-
eurated at the last session of Con-
gress and get back toward pre-waI
government expenditures, and he
hopes to make as good record az
that of the last session. which re-
duced the estimates of the depart
ments by more than two billion dol
lars.
Using the Pruning Knife.
Mr.. Wood of Indiana. who has
charge of the legislative bill. has be-
gun with a pruning knife and ex-
4, poets to reduce the number of civil
employees of the government by
some 10000. thereby reducing the
pay roll by many thousands. Mr.
Wood feels that the executive de.
partments have made large estimates
because the heads of those deparf.