Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-20
Editorial Digest
The Houston Tax Plan.


Secretary of the Treasury Hous-
tons taxation plan has met with any-
thing but approval from the nations
press. Perhaps the feature that has
brought forth the most comment is
the proposition Of making a difference
spent incomes, for. 1t is pointed out.
it would take a pretty fine eye to
disclose the varying shades between
Investment" and expenditure. The
elimination Of the excess profits tax
comes in for its share Of praise and
blame and there Is. of course. loud
outcry against taxes in general with
economies.
The Minneapolis State Journal On
dependent republican,, does not think
much of Mr.. Houston's efforts:
His plans for a multitude Of pestif-
erous taxes" it says, difficult to coll
ening in their effects. would. if adopt.
ed by the republican majority. be
equivalent to committing political
suicide"
On the other hand. 1.-The Secretary
! is doing conscientiously all he can to
pay what It ought for the support
OF the government" in the opinion
Of the Mobile Register (democratic).
and the Oklahoma City Oklahoman
(democratic). believes that the ''prin-
cipies underlying his proposals are
tdemocratic). while 1t praises the Secre-
| tary for his frankness. asserts that
| enactment Of the Treasury schedule
would result in nationwide protest
that no legislator could Withstand"
Sooner or later, however. some of
| Houston's suggestions will have to be
| adopted the Louisville Evening Post
independently informs us.
The argument for the elimina ton
OF the excess profits tax Ia put forth
in detail by the New York Times
independent democratic):
The time has gone by for any
| argument that the surfaces and ex.
cess profits taxes are unjust, extor-
tionate and a menace to the prosper
ity OF the eountry's business. They
are vicious in theory; they have be-
come unbearable in their applica-
ton: it is not and can never
be true that only those who receive
tax bills pay taxes; an attempt to
punish wealth by high taxes OPP
crates in large measure to increase
the living costs Of the people. inso-
much that they are far more out OF
pocket than they, would be under a
system Of taxation which equitably
distributed the burden"
The New York Globe tindepe ndent)
answers this argument by calling at
tention to the fact that the Sec
portant to consider than the amount
Of money that it brings into. the
Treasury, and the "surtax on large
incomes. whether administered as an
excess profits tax or in some other
form. tends toward more even dis
tribution.
while secretary Houston's dffferen-
tiation between income that Is spent
and income that is saved. with a low
er tax rate on the latter. seems at
tractive" to the st. Louis Post-Dis-
reinforcement Of the tax might be an
other matter: furthermore, the bur-
den would fall upon tens OF thou
sands who ARE debt-hArassed men
Of large families and incomes less
than $4,000. to whom the problem Of
struggle" The Philadelphia Record
Independent demscratic) considers
the plan Interesting and useful" be-
cause II would encourage investment
and relieve the stringency in the in
But the New York World tdeme-
cratic, calls the whole plan ian.
tastic,'' and ITO put a premium on
savings would be to give dishonesty
one more avenue Of escape and to add
to the burdens Of investigation and
execution TO the st. Louis Star
independently the program is "one of
the political curiosities OF the day"
the effectiveness Of which Is doubt.
fui:
does not md tho report very bust
nesaiike:
~There would be nothing but added
confusion in &he proposal that fndi-
vidual incomes be taxed at two rates,
dffferentiating between incomes saved
and incomes spent, while the raising
Of the rate on incomes under $4,000
from 4 to 6 per cent would add to
the trials Of the classes in the COM
munity that are suffering most from
the present economic strain
The Springfield Union republican,
believes in the equity Of . customs
tariff and makes this criticism Of the
Houston plan:
"The trouble is it would put pen
atty on tho necessary cost Of living
food, clothes. fuel and rent--and thus
upon the people who, a. 4 rule. have
small margins for investment. and II
would make the burden lighter upon
those whose incomes enable them
to invest regularly and comfortably
The fault In tho scheme. according
ia that the new taxes are Imposed
with no idea OF placing the burden
on the shoulders most able to bear
them. but upon those from whom IL
will bo most easy to collect" the class
that the tar collector has labeled the
easy marks"
Tho call for q reduction Of expenses
In running the government comes
from q large number OF newspapers
which emphastxe this need and give
less detailed attention to the taxes.
The New York Evening Post (inde-
venaent) reminds its readers that
athe moment when business can least
AFFORD to contribute to the 'cost OF
carrying on the government y the
very moment when that contribution
IN most sorsly needed" and concludes
that I'VE must insist on economy IN
every department Of the government.
I'VE Must Amerioanixe."
America has become not only the
<hA NwAe1A hNf also the