Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-11
TAXES TO Be ISSUE
IN COX'S SPEECHES
T0BUS|NESSM MEN
Nominee Will Revert to
League of Nations on
Western Tour.
BY DAVID LAWRENCE.

COLUMBUS. Ohio, August 1l.-Gov.
Cox, having made a complete exposi-
tion of his views on the league of ma
tions, plans for the Immediate future
TO discuss taxation and other issues
that interest the business men of the
country
Inc governor is satisfied, both from
republican and democratic press com
ment, that the nation understands
clearly that he favors going into the
ieasue of nations, with reservations
that safeguard American rights and
make 1t impossible for the United
states TO be summoned to war against
the wish of her people
Mr. Cox will revert to the Ieague
or nations issue on his western trim.
! which will begin in about three
weeks. but in the industrial and busis
ness communities of the east. where
the paramount thought is about labor
and business. be intends to give speci-
fications as to his own course in the
event that he should be elected Presi-
dent.
Will Detail Attitude on LabOr.
n.
on Saturday of this week. he will take
occasion to discuss in detail his atti-
tude toward labor, the general princi-
pies of which he outlined in his speech
OF acceptance last week. But the main
theme of his speeches next week will
De the relationship Of government to
business
The subject of taxation interests the
governor more than any other of our
domestic questions, for he believes it
fundamental cause of the economic up
heaval both in the cost of commodities
and the cost of credits.
With respect to taxation, the COVER
nor is prepared to show not only why
the excess profits tax should be instant
ly repealed, but exactly what should be
substituted for it as means of raising
| an equivalent amount of revenue AS
was indicated in his speech of accept
ance. Mr.. Cox believes it would be far
more equitable to put a tax of from
| l to Y per cent on every going con-
cern." and make every profitable BUSH
ness ness pay that tax. than to destroy the
initiative and penalize the genius Of
! business men by excess profits taxes
| that eventually find their way to the
consumers bill
The phrase going concerns" was
fused by Gov. Cox because it was point
| ed out to him that fat tax of y :
per cent on all business would in
many cases where small concerns are
operating at a loss or just breaking
even mean a hardship that was unjust.
The tax would be placed upon con-
Germs that are making a profit.
Tax Would Bring In Revenue.
Judging by the estimates made by
the group of business men who agi-
tated the subject before the ways and
means committee of the last Congress-,
| the tax would clearly bring in sum-
cient amount of revenue to permit
the removal of irksome and annoy
ing taxes from the people as whole.
The transference of a 1A per cent
tax to the public would in some cases
occur. of course, but with the excess
profits taxes it has meant in some
| instances the transference of a 20 per
cent tax and sometimes more than
that. The theory seems to be that
with every concern paying X per
cent on its gross business every year
there would be collected just as much
money, but from more sources and
that the burden would be so equitably
distributed that concerns which have
found themselves compelled to raise
prices will be able now to absorb the
effects of declining prices.
In other words. released from the pay
ment of eXorbitant taxes, concerns will
be able. it is contended. to sell at lower
prices and still make more money than
they used to do when half of their
profits had to be paid to the government
in taxes.
Harding Offers No solution.
Senator Harding also favors a repeal
of the excess profits taxes, but says he
hos no solution to E-enose This probably
means that he is aw >g the advice of
the country before mar, recommen-
dation of his own.
But before the campaign is ever il is
anticipated that both the republican and
democratic candidates will be pinned
r har flnSaly npt only on ta
but on the question of bringing back
liberty bonds to par. which promises to
be troublesome query when the public
mind becomes saturated with the league
of nations discussion and wants informa-
ton on matters closer to the citizens,
pocketbook.
Copyright. 1920.