Evening star., 1920-03-05
M'ADOO URGES
REDUCTION IN TAX
Former Secretary of Treas
ury Claims Present Bur-
den Too Great.

Claiming that the present tax bur.
den is too great. and is having an in
furious effect on business, William G
McAdoo. former Secretary Of the
Treasury. suggested yesterday that an
, immedi ate billion-dollar reduction IL
federal taxes be made
Mr.. McAdoo said in part:
THE financial policies of the nation
as embodied in future conSressiona'
legislation. should realize the utmoE:
economy in expenditure and III: En'
well fund in long term bonds s1,0s>
600. 600 per annum for two wears =.
the amount now raised h. tava ,i"r.
Under the laws n tax 20 "stabiish .
per cent sinking FUND 70 rcti""
bonds now outstanding 5 to Il" "N.-
lected beginning with the fI&rG! - :
1920. This might well b. postponed
for at least two years and thas re-
duce the tax burden by a0.ocn.n'U
annually. There, too. is the debt which
Europe owes US. and which nov
amounts to about ten billion dollars.
should Have Income.
eff the economic restoration Of Eu-
rope had proceeded far enough SO
that Europe could now pay interest on
this debt tas she viii h" able 70 with
in a few years.. we should have an
income of S5O0.00n oon from this
source. But that is not row available
Why not fund that amnunJ against
Inc day when ii will come back 20 us
BY postponing for two oars the
establishment of a sinking dnd and
funding the deferred payments OF
European interest. we should cover
$3.50 900 900 of the billion dollars by
Which our taxation might be reduced
Rv diScontinuing purchases or liberty
bonds for retirement under PROVISIONS
Of existing law the Treasury would be
relieved of a large burden now re-
flected in the floating debt and which
otherwise will have TO be made up
Fy taxation.
III would seem that reduction of our
tax bill for the next TWO wears in this
manner could he accomplished and
that II would involve the issuance of
additional bonds TO the extent of
probably not more than one and
half billion dollars.
Tax Burden Too Great.
II trust that the ways and means
committee OF the House of Represent
atives, in which all tax measures
must. OF course. originate, Will con-
slider this question in It's broad rels =
tions to our general economic welfare.
The immediate burden of taxation Is
100 great. 1t is having an injurious
effect on business. 1t is a contrlbut-
ing factor of large proportions in the
high cost of living. Its inevitable
tendency is to stifie new enterprise
and to throttle initiative. 1t is both
unscientific and ineQuitable. In view
of the approaching decline in our eX
port trade with the inevitable reduc-
ton in the volume of business in the
country. it will become doubly impor-
tant to revise and 10 reduce taxation
in order that business may not have
TO carry an unnecessary tax burden
throughout this period of readjust
ment."
Local Stocks Dull.
There was comparatively little trad
ing on the local stock exchange today.
Three lots Of Continental Trust Com
pany stock. two of ten shares and one
of FIVE shares. sold at III One Wash
t1gton Gas 81 900 per cent sold at S62..
one 81 900 Capital Traction five at 93i,
1nd one share of Washington Gas sold
brought 46is-
After call two lots of Washington
Gas were disposed of. two shares at
a6k and thirteen shares at 46h.
There was also one Capital Traction
$500 five sold at 1914.